Calif. jobless benefit system overwhelmed

SACRAMENTO, Jan. 19 (UPI) -- A flood of telephone calls, an antiquated computer system and dwindling funds are overwhelming California's jobless benefits delivery system, officials say.

At the same time as the state's unemployment insurance fund is running low, California's unemployment rate is approaching a 15-year high, the Los Angeles Times reported Sunday. The jobless rate hit 8.4 percent in November, up from 8.2 percent in October.

Millions of telephone calls to unemployment insurance processing centers are not being answered and the operation's computer system is 30 years old. Similar problems are occurring in at least 10 other states.

Ingrid Evans, director of unemployment insurance for the National Association of State Workforce Agencies in Washington, told the Times "calls are coming in fast and furious in all the states."

"The magnitude of it cannot be overstated," she said.

California's unemployment insurance fund is paying out $30 million to $34 million per day in jobless benefits. Its balance went from about $500 million to $270 million during the week of Jan. 5, the newspaper said.

California is likely to need a federal loan to keep the system going.

Gov. Arnold Schwarzenegger has urged lawmakers to increase payroll taxes on employers and cut benefits to people whose lose their jobs.