APNewsBreak: SC agency making early debt payment

COLUMBIA, S.C. (AP) — South Carolina’s unemployment agency is making a $144 million early payment toward its debt to the federal government, helping to reduce businesses’ insurance taxes.

The agency’s director of unemployment insurance says Friday’s payment will be four months ahead of schedule, saving $1.7 million in interest. It will leave an outstanding balance of $540 million on the state’s original debt of nearly $1 billion.

Erica Von Nessen says the agency also plans to pay an additional $50 million in September.

The payments allow for lower 2014 tax bills to South Carolina businesses paying into the trust fund. They’re partly attributed to internal policy changes and legislation that led to fewer people qualifying for jobless benefits and for shorter periods.

The debt is still on track to be paid off in 2015.