Minnesota employers fear tax hike to cover unemployment deficit

(St. Paul, MN) -- Minnesota employers are fearing tax hikes as the state owes more than one billion dollars to the federal government to cover unemployment costs.  

Over a quarter of Minnesota's workforce filed for unemployment benefits last year, draining the state's one-point-five billion dollar trust fund for sidelined workers. The state borrowed over a billion dollars from the federal government to keep unemployment payments up-to-date.  

Lawmakers are debating how to repay the debt, but business owners say any unemployment tax hikes could be devastating.