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New Mexico taps federal loans to pay unemployment

  SANTA FE, N.M. (AP) — New Mexico has depleted its unemployment benefits trust fund and begun to use federal loans to keep up with claims. Workforce Solutions Secretary Bill McCamley told a panel of state legislators on Tuesday that unemployment trust reserves were exhausted on Sept. 8 and that the state has spent about $35 million in borrowed federal funds on claims. The federal loans if left unpaid can eventually trigger tax increases. New Mexico’s unemployment rate of 11.4% in August exceeds neighboring states as health officials take gradual steps toward reopening the economy and schools. About 123,000 people statewide are receiving unemployment benefits.