The economy continues to take its toll on Wisconsin’s unemployment compensation fund.

The projected deficit is in the billions of dollars, and options range from more borrowing from the feds, decreasing benefits, or raising taxes on employers.

Based on how the economy is fairing, state Senator Jon Erpenbach (D-Waunakee) says the best option is likely going to be to continue borrowing for awhile. He says it would be unwise to raise taxes on businesses, especially if cuts in benefits would also be necessary.

At last count, the unemployment fund’s debt was nearly $1.5-million-dollars and growing. The state has already borrowed more than $1 billion from the federal government in order to continue paying unemployment claims.

AUDIO: John Colbert reports (:37)

Share the News