The Department of Labor, Licensing and Regulation said Thursday it is seeking a short-term advance of about $250 million from the federal government so the state agency can continue paying unemployment benefits. The money will be used to pay benefits beginning next month and until April when employers send in their unemployment insurance tax payments to the state. Reserves in the Maryland Unemployment Insurance Trust Fund have dropped from $755 million at the end of 2008 to less than $100 million. Maryland pays out about $22 million a week to residents who lost their jobs for no fault of their own. As part of the 2009 stimulus package, the federal government offers tax-free advances until the end of this year to states needing to replenish their trust funds. Maryland expects to repay the federal government by the deadline. The state agency said 26 other states have sought $25 billion in federal advances.
- Eileen Ambrose