Loree Levy with the Employment Development Department says the fund has been insolvent for about two years and is eight-and-a-half billion dollars in the hole. She says that'll get worse over the next few months:
Levy: "By the end of 2011, we anticipate being 11.1 billion dollars in the red in the unemployment insurance trust fund."
Levy says that's money the state has to borrow from the federal government - and the first interest payment of 320 million dollars will be due in September. She says the state's system hasn't changed since 1984:
Levy: "Salaries have gone up. The minimum wage has gone up and therefore how much people can collect in benefits has increased significantly while we've remained very static in what we can collect from employers so what you've got is a growing imbalance in the system."