States ignored warnings on unemployment insurance - Yahoo! News It's clear now the warnings were pretty much ignored. Instead, states kept whittling away at the trust funds, mostly by cutting unemployment insurance taxes at the behest of the business community. The low balances hastened insolvency when the recession hit, leading about 30 states to borrow $41.5 billion from the federal government to pay unemployment benefits to their growing population of jobless. Cut taxes for the businesses, who in turn got rich and in turn screwed the workers out of unemployment. Then states started requesting federal funds to pay for what they themselves screwed up[where was the fiscal/personal responsibility?] and in the end the federal government gets the blame for overspending when all the federal government is doing is covering the buttocks of the businesses and states who screwed up. GOPtards? LMAO!