RICHMOND -
Many local employers are still grappling with the reality that their unemployment taxes will be up significantly in 2010.
"That's the last place the state should go [for more money]," sighed Kim Downing, owner of Chesterfield salon and spa Design One. "We are the small businesses that are generating the income and the jobs for the people in the community."
Virginia will need to ask the federal government for help, however, and by extension Virginia citizens and businesses, to finance its climbing unemployment benefits.
The borrowed money- initially to the tune of $252 million- will be covered by higher unemployment taxes assessed on business.
The interest from that loan will be borne by Virginia taxpayers.
"This is something all states are doing now," declared Governor Kaine Wednesday. "Until the economy improves, that's one of the challenges we'll have to deal with."
The double whammy of higher taxes on businesses, and more federal interest to pay off, could last well into 2012.
The Virginia Employment Commission projects additional funding needs for two to three years, and a total bill of up to $1.27 billion.
Businesses will face on average an increase of 80 percent in their unemployment taxes, from $98 per worker to a rate of $171.
Downing, who first heard of the increase Wednesday, says the boosted rates will definitely impact her business and could affect employee compensation.
"That's the last place the state should go [for more money]," sighed Kim Downing, owner of Chesterfield salon and spa Design One. "We are the small businesses that are generating the income and the jobs for the people in the community."
Virginia will need to ask the federal government for help, however, and by extension Virginia citizens and businesses, to finance its climbing unemployment benefits.
The borrowed money- initially to the tune of $252 million- will be covered by higher unemployment taxes assessed on business.
The interest from that loan will be borne by Virginia taxpayers.
"This is something all states are doing now," declared Governor Kaine Wednesday. "Until the economy improves, that's one of the challenges we'll have to deal with."
The double whammy of higher taxes on businesses, and more federal interest to pay off, could last well into 2012.
The Virginia Employment Commission projects additional funding needs for two to three years, and a total bill of up to $1.27 billion.
Businesses will face on average an increase of 80 percent in their unemployment taxes, from $98 per worker to a rate of $171.
Downing, who first heard of the increase Wednesday, says the boosted rates will definitely impact her business and could affect employee compensation.
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