The Orlando Sentinel published an article recently profiling Florida's bankrupt unemployment fund. This month Governor Charlie Crist signed legislation which expands unemployment spending, even though the fund is expected to be depleted and plummet into red figures within two months. The next step is to borrow money from the federal government to fund unemployment benefits which will put the state in further debt.

Florida businesses are going to feel the backlash of this problem. If the state does not pay back a loan from the federal government within three years, the federal government will come looking for the state's businesses to pick up the tab by reducing tax credits for businesses paying into unemployment benefits system.

What's lost in all of this is that Florida is experiencing the pains of taking federal stimulus money. One of the many strings attached to the stimulus bill was that states expand their unemployment rolls, which is why many conservative governors rejected the money. Florida is about to see what servitude and federal indebtedness does to a budget.

Official estimates predict the unemployment fund will be $3.2 billion in debt by 2012, with Florida businesses poised to pick up the tab for years to come.

The employed in Florida will also see tax increases in their pay check. Previously, Florida paid for unemployment benefits by taxing Floridians on their first $7,000 in income. With the new legislation Governor Crist signed this month, Floridians will now be taxed on their first $8,500 in income.

Tamela Perdue, general counsel of Associated Industries of Florida, acknowledged that this tax increase wouldn't cover the deficit the unemployment fund is about to incur and businesses will most likely face a surcharge.

"I'm sure they're not going to be happy about it," she said. "But what we've done, this still isn't enough."

The state government is increasing costs on businesses as a means to lower the deficit after years of reckless spending and there seems to be no end in sight. The state can't expect businesses to foot the bill for endless debt and then find money to hire the unemployed.