Governor Phil Bredesen says another tax hike to keep Tennessee's unemployment funds going appears unavoidable.
In fact the governor said the increase would be necessary.
A new law enacted this year increased the amount of an employee's wages subject to the unemployment tax from $7,000 to $9,000 dollars and raised the tax rate by 0.6 percentage points.
Bredesen said the legislature should consider setting up automatic increases to make sure the fund doesn't run out of money.
The Tennessee constitution prevents the state from borrowing federal money for government operations.
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