State issues bonds, pays $3.2B to U.S. Treasury

LANSING (AP) -- Michigan is paying off more than $3 billion borrowed from the federal government since 2007 to cover unemployment benefits for people who lost jobs. The state sold $3.3 billion in bonds last week Wednesday, then sent most of the money to the U.S. Treasury. About $40 million borrowed from Michigan's general fund is also being restored. Michigan employers will repay the bonds. As a result, some companies will see their unemployment-insurance payments go up. Paying off the federal loan eliminates hefty penalties and interest that employers were required to send to Washington. Published: Thu, Jan 5, 2012