INDIANAPOLIS (AP) — Gov. Mike Pence is set to make an announcement about a federal loan that the state took out to pay unemployment benefits during the recession.
The Republican governor is expected to agree to a plan that would use about $250 million from Indiana’s surplus to finish paying back the federal government for the loan.
If Indiana pays off the loan by Nov. 10, the state will eliminate a $126-per-employee penalty that businesses would be charged for 2016.
Officials expect to transfer money from the state unemployment fund next spring to restore the withdrawal from the state’s $2 billion in cash reserves.
Businesses pay taxes into the unemployment fund, which has already repaid much of $2 billion in federal loans.