The Legislative Audit Bureau’s report on the state’s Unemployment Reserve Fund shows that the fund’s equity increased by $313.7 million during the 2011-12 fiscal year, however, the fund is still $612.4 million in the hole.

During fiscal year (FY) 2011-12, fund equity increased from a deficit of $926.1 million as of June 30, 2011, to a deficit of $612.4 million as of June 30, 2012, or by $313.7 million. This was the first increase in fund equity since FY 1999-2000. The amount owed by the Fund on a loan from the federal government decreased from $1.4 billion as of July 1, 2010, to $926.2 million as of June 30, 2012, or by $498.6 million. Interest in the amounts of $42.3 million and $35.8 million was paid on the loan in September 2011 and September 2012, respectively.

The LAB further reported that because the fund does not have a positive balance of at least $300 million, the highest unemployment tax rate schedule is still applicable.