Wednesday, May 13, 2009

A billion here, a billion there

Kentucky's Gov. Steve Beshear has said a lot about revenue shortfalls since he has been in office. Recently, he claimed overspending may amount to a billion dollars in the next fiscal year.

We are about to make it worse.

The state announced today it is ready to start accepting applications for five months in extended unemployment benefits. The press release includes this statement:

"The Extended Benefits Program is normally funded 50 percent from the state Unemployment Insurance Trust Fund and 50 percent from the federal unemployment fund. However, as a result of the Recovery Act, federal funding will cover 100 percent of the costs."

This is only true, of course, until the federal stimulus money is gone. Then we go back to spending money we don't have to pay people not to work. Brilliant.

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