Pa. borrows $310 million for jobless benefits

HARRISBURG - The Rendell administration has borrowed $310 million from the federal government to help cover the surging cost of unemployment benefits amid rising jobless claims.

Department of Labor and Industry spokesman Troy Thompson said yesterday that the state borrowed the money this week, the third time in the last six years that Pennsylvania has had to seek such a loan.

Thompson said the loan does not begin accumulating interest until 2010, but the administration expects to pay it back well before then.

The state says more than 295,000 people have been approved for benefits through April 4 of this year, compared with fewer than 180,000 at this point last year. - AP