{Frankfort, Kentucky}...Kentucky business and labor leaders are working to come up with a plan to make a possible $44 million interest payment on a nearly $950 million loan from the federal government that was used to pay unemployment claims. Leaders were able to develop a plan to repay the $948 million loan, which was approved by the Kentucky General Assembly in 2010. That plan includes decreasing unemployment benefits and increasing costs to businesses, but federal rules say interest payments on the loan may not come from the unemployment insurance trust fund, funded entirely by business taxes. Last fall, the state used money from various pots in state government to make the first interest payment of $28 million. The second interest payment is due September 30th, and it could be $44 million.
