COLUMBIA, S.C. (AP) — South Carolina's unemployment agency is making a $144 million early payment toward its debt to the federal government, helping to reduce businesses' insurance taxes, agency officials told The Associated Press on Wednesday.
The payment on Friday will be four months ahead of schedule, saving $1.7 million — $14,000 a day — in interest costs. It will leave a balance of $540 million on the state's original debt of nearly $1 billion, said unemployment insurance director Erica Von Nessen.
The Department of Employment and Workforce plans to make an additional payment of $50 million in September, provided there are no spikes in laid off workers seeking benefits. The debt accrued between December 2008 and spring 2011 as the agency borrowed to keep sending checks amid climbing jobless rates.
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