WASHINGTON (SBG) - While unemployment checks seem to magically appear in bank accounts every month for the millions of Americans collecting the benefits, that money comes with major strings attached for the states funding them.

Ten states and U.S. Virgin Islands owe the federal government $45.6 billion for unemployment funds — at an interest rate of 2.3 percent.

These states owe more than $1 billion per year in interest payments alone.

When states ran out of their own money, Uncle Sam lent them cash to pay their out-of-work residents — called Title XII advances — money initially coming interest-free. But starting Sept. 13, the remaining balances must be paid with interest, according to reporting at Route-Fifty.com.

Now 10 states must cough up what they owe with interest — California, $19.5 billion plus interest; Colorado $1 billion; Connecticut $725,000; Illinois $4.2 billion; Massachusetts $2.3 billion; Minnesota $1 billion; New Jersey $193,000; New York $8.9 billion; Pennsylvania $721,000; Texas $6.9 billion; and the U.S. territory, the Virgin Islands $96,000.

Ohio, Hawaii, Nevada, and West Virginia recently paid off their debts before the interest kicked in, with some states using funds from the American Rescue Plan Act to repay the loans.

Since unemployment benefits are funded by taxes levied on businesses, those 10 states

could see big tax hikes on employers next year

California state government declared a $75 billion budget surplus last year. Colorado declared a $3.8 billion budget surplus last year. So, why do these states owe the federal government for unemployment benefits?.

The vicious cycle of borrowing, spending, and hiking taxes is not only a waste of taxpayer money but one that’s avoidable with responsible government.

The #WasteOfTheDay is presented by the forensic auditors at OpenTheBooks.com.