CARSON CITY, Nev. (AP) - Nevada has issued $612 million in bonds to pay off its unemployment insurance debt to the federal government.
The Division of Employment Security on Tuesday said retiring the debt through bonds will save employers about $24 million and keep unemployment insurance tax rates stable. It will also allow the state to begin shoring up its own trust fund after it was drained during the recession and record high unemployment.
Before the recession, Nevada's unemployment trust fund had reserves of more than $800 million. But when the economy tanked and thousands of people lost their jobs, the state's trust fund was quickly depleted.
Nevada like other states had to borrow money from the federal government to cover the cost of weekly unemployment insurance payments.
Nevada borrowed a total $846 million.
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