Committee probes whether ACA 20 can help pay down unemployment‑insurance loan
Senators asked whether ACA 20's expanded debt‑payment authority could be used to address the state's outstanding unemployment‑insurance (UI) loan; LAO said paying UI would be a legislative choice and that typical debt payments have been roughly $2 billion annually, with the outstanding federal loan described in the hearing as about $20 billion.
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Senators repeatedly raised the state's outstanding unemployment‑insurance (UI) loan as a use case for the additional debt‑payment authority ACA 20 would create. Senator Blake Spear asked how much of the UI loan might realistically be paid if the measure were approved; Carolyn Chu (LAO) said the choice of which liabilities to pay is a decision for the legislature and governor, and noted that annual debt payments under current rules have often been in the neighborhood of $2 billion.
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