Three Southern states to borrow funds to pay unemployment

SOUTH CAROLINA: State is one of eight with insolvent unemployment funds

Andrew Stettner, deputy director for the National Employment Law Project, said while some other states such as Michigan and New York are borrowing much more from the federal government to pay their unemployed, South Carolina's situation stands out because of its size.

South Carolina has so far borrowed $187 million; the state will likely ask for more as swelling unemployment overwhelms the state's fund, which once held $800 million. Stettner said South Carolina's loans will take years to pay off and are the result of "bad policy choices and neglect."

North Carolina and Kentucky are among the eight with the problem as well. North Carolina is now paying about $50 million a week in unemployment benefits. North Carolina borrowed $13 million this week, and officials plan to ask for more as needed, tapping into a $540 million line of credit.

Also in the South:

ALABAMA: Secretary of State Beth Chapman may run for governor in 2010

ARKANSAS: Job losses could impact schools, if families move in search of work

FLORIDA: State reverts to in-house food service for inmates following failed privatization by Gov. Bush

GEORGIA: Sunday alcohol sales seen as possible booster of state's economy

KENTUCKY: Global Environmental Services recycles, refurbishes electronic gadgets

LOUISIANA: Historically black colleges hit hard by economic downturn

MISSISSIPPI: Bill would make traffic cameras at intersections illegal

NORTH CAROLINA: Student fund could go bust by 2012 if legislature can't find financial aid source

TENNESSEE: State Democratic Party chairman lays out plan to take over legislature

VIRGINIA: Gov. Kaine to give legislators an update on budget forecast today

If you have a news story about public policy to suggest, send an email to: info@bettersouth.org.