Unemployment Fund Faces Insolvency Next August

SANTA FE, N.M. – Workforce Solutions Secretary Ken Ortiz said Wednesday that higher taxes on businesses and reductions in benefits are the options for shoring up the unemployment fund.

The Legislature and Gov.-elect Susana Martinez will decide how to fix the program.

if nothing is done and the unemployment fund runs out of money, then businesses will end up paying higher taxes.

New Mexico will have to borrow money from the federal government to pay jobless benefits if the state's fund becomes insolvent. Ortiz said taxes on employers then would have to increase to replenish the fund and repay the loan with interest.