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Lamont warned about unemployment trust fund's insolvency

HARTFORD, Conn. (AP) Connecticut Gov.-elect Ned Lamont faces a challenge when he takes office in January: an insolvent unemployment compensation fund.

There's concern the insolvency could ultimately cost the state's employers hundreds of millions of dollars in payments, similar to what happened from 2011 to 2015 when they repaid a federal loan needed to sustain benefit payments.

A warning about the fund's fiscal condition was included in a transition memo the Department of Labor drafted for Lamont. The agency says there's currently $609 million in the trust fund, but the recommended amount is $1.7 billion to handle an economic downturn. Employers finance the fund.

The Associated Press obtained the transition memo through an open records request. There's been a debate over what reforms might be needed to address the insolvency.


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