By Shelley Kofler, KERA News
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-816793.mp3
Dallas – After nearly five years of rosy jobs reports in Texas, the news is sobering. The state is bracing for disappointing employment numbers being released Friday morning. Meanwhile, a fund that pays unemployment claims is running short. KERA's Shelley Kofler recently talked with Texas Workforce Commissioner Tom Pauken about the consequences.
----
At a recent symposium Texas Workforce Commissioner Tom Pauken joined Governor Rick Perry in promoting new energy projects and the new jobs they would bring to Texas.
Then Pauken sat down to talk about today's reality
Pauken: We've seen a huge uptick in unemployment claims in November and December and unfortunately Hurricane Ike hit earlier. I don't think the new jobs will offset the loss of jobs.
While Texas has weathered the economic slide better than most states, Texas unemployment claims climbed 96 percent in 2008.
Pauken's agency is now warning that by October the fund that pays unemployment claims may have a $447 million shortfall. That means it would have less than half the money on hand the state requires it to keep.
Pauken stresses, valid unemployment claims will be paid
Pauken: They will get their unemployment benefits if they have lost their job through no fault of their own
But he says the state may have to take drastic steps.
Pauken: What we would do is borrow some money from the federal government, or we can float bonds, five year bonds. We could raise taxes on the employers but that's not a good thing to be doing in this economic environment.
If the unemployment claims fund dips below a certain level state law requires taxes now going to other programs be automatically shifted into the claims fund. The Workforce Commission says money for the Governor's Enterprise Fund would be diverted to the claims fund. The state's top job training program would also hear a giant sucking sound.
Pauken: The concern I have is that could affect the job training programs that we like to give people skills development and some other initiatives as well
The Work Force Commission's job training program helped create some eight thousand new positions last year. It allowed even more Texans to upgrade their jobs skills.
If the program is endangered Pauken says he may ask legislators for help. Losing job assistance just as more become unemployed doesn't make sense.