Obama wants to extend unemployment but States are running out of money

States drain unemployment trust funds

State unemployment insurance trust funds are rapidly running out of money amid soaring job losses.

This is prompting state officials to consider raising employer taxes or curtailing benefits, while forcing them to borrow from the federal government to cover claims.

"Some states didn't have adequate reserves built up," said Andrew Stettner, deputy director of the National Employment Law Project. "They are having significant problems paying out the increased number of benefits."

So Obama and the Democrats would pass a stimulus package that extends unemployment but will they provide funds to the states?

If the states raise the taxes on businesses will they absorb the cost or lay off a few more to save money?