Effective April 29, 2020, California borrowed $348 million from the $2.348 billion Title XII Advance Authorization funds. This influx of cash into the State Unemployment Trust Fund was not unexpected, as California’s Trust Fund was anticipated to become depleted by the end of April. Currently, the Treasury Direct site (https://www.treasurydirect.gov/govt/reports/tfmp/tfmp_advactivitiessched.htm) lists 4 states with either outstanding loan balances (California and the Virgin Islands) or with Advance Authorizations in preparation for a future need (California, Connecticut, Illinois). Additional applications for Advance Authorizations are anticipated, as the unprecedented amount of unemployment claims due to the COVID-19 Virus continue to deplete the already underfunded state Trust Fund accounts. Please continue to follow CCC for additional updates the COVID-19 Virus is having on state agencies, unemployment rates, and state Trust Fund Balances.
