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State could issue bonds to pay off federal debt on unemployment

By Laura Weber, Michigan Public Radio Network

Lansing, MI – The state may issue more than $3 billion in bonds to pay off federal unemployment benefits loans. First, the state legislature must approve a package of bills that would allow the state to issue the bonds and stop borrowing from the federal government to make unemployment payments.

"We reached a high-water mark of almost $3.9 billion in loans that we took from the federal government, which on a per capita basis makes us the number one state in the nation for federal borrowing to pay unemployment benefits," says Charlie Owens. He's with the Michigan chapter of the National Federation of Independent Businesses, which supports the bonds proposal.

Michigan could become the second state in the nation to issue bonds to pay off the unemployment benefits loan from the federal government. Texas issued bonds a couple years ago.

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