WASHINGTON - Employers in Ohio and 19 other states will have to shell out more in taxes next year as a penalty for not paying back federal loans that kept unemployment programs afloat during the recession.

Altogether, states still owe $37.6 billion to the federal government that they borrowed when their unemployment insurance trust funds sank to zero. Ohio's debt is $2.3 billion.

Most states have dealt with the problem by raising state payroll taxes on employers, making benefits to workers less generous, or a combination of the two.

A handful, though, have opted to issue bonds. Idaho did it this year, and Texas did it last year. This month, Illinois lawmakers approved legislation allowing the state to issue bonds to pay back the $2 billion the state owes the federal government for unemployment relief. Illinois Gov. Pat Quinn has indicated he will sign the measure. The state figures it will get an interest rate lower than the 4 percent it would have to pay the federal government, saving the state and businesses millions of dollars.

Filed Under : Unemployment Insurance