SACRAMENTO — California's system for providing jobless benefits is quickly running out of money even as state government scrambles to keep up with the highest level of unemployment in almost 15 years.
Meanwhile, other state services for the jobless are stretched thin as the state's unemployment rate rose in November to 8.4%, up from 8.2% the month before.
Millions of calls to state unemployment insurance processing centers continue to go unanswered, a problem first reported by The Times in April. A 30-year-old computer system is overloaded, and stressed clerks are swamped by backlogged applications.
California is not alone in dealing with an unprecedented jump in the number of applications for unemployment benefits. With U.S. unemployment at 7.2%, at least 10 other states report strains on computer and telephone networks. Computers recently crashed for short periods in hard-hit New York, North Carolina and Ohio.
"The magnitude of it cannot be overstated. The calls are coming in fast and furious in all the states," said Ingrid Evans, director of unemployment insurance for the National Assn. of State Workforce Agencies in Washington.
Last month, California issued $1.1 billion in assistance checks to 429,000 claimants. Unemployed workers are eligible for payments of as much as $450 a week for up to 59 weeks.
California's unemployment insurance fund, which is funded by payroll taxes paid by employers, is expected to run short of cash within two weeks. The state is paying out $30 million to $34 million a day in benefits. During the week of Jan. 5, its balance fell from about $500 million to $270 million.
Jobless benefits will not stop, but the state must seek a federal loan to keep the system afloat. Five other states have already obtained such short-term loans, which must be paid back with interest.
"We must take action now," Gov. Arnold Schwarzenegger told lawmakers in November, "because the longer we wait, the worse the situation will get for the system and California families who rely on it."
His comment came as he urged lawmakers to raise payroll taxes on employers and cut benefits to unemployed workers. Despite the urgency, neither Schwarzenegger nor lawmakers have engaged in negotiations aimed at keeping the unemployment insurance fund in the black. They've been aware of the problem since at least 2004.
