Unemployment reserves at risky levels

WASHINGTON, June 2 (UPI) -- Four states are running low on reserves needed to support funds for unemployment insurance and others could follow if the U.S. economy worsens, analysts said.

Reserves in Michigan, Missouri, New York and Ohio have enough cushion to last a few months, but experts prefer a cushion of at least a year, Stateline.org reported Monday.

"There is no cause for panic," said Andrew Stettner, deputy director of the National Employment Law Project. "But the situation is fairly worrisome."

There are currently 7.6 million workers collecting unemployment benefits, up from 6.8 million from a year ago.

In the meantime, 732,710 former workers saw their 26 weeks of unemployment insurance benefits run out in the first quarter of the year, Stateline.org reported.

In May, the U.S. Senate voted to extend benefits by 13 weeks, an $11 billion deal that would be paid for with federal money alone, unlike traditional benefits, where costs are shared by states.

President Bush is expected to veto the bill, which is was attached to the war appropriations bill.

If it passes by a two-thirds majority in Congress, however, it would be, as it stands, veto-proof, as the Senate passed the bill by a veto-proof majority.