Gov. M. Jodi Rell said Wednesday if Connecticut's unemployment numbers continue to rise, the state's unemployment compensation fund may fall short of cash.
She said "all indications" show the state will not have enough money in the account, which is funded by a tax charged to employers.
The state's unemployment rate climbed in recent weeks from 6.1 percent to 6.5 percent.
The Department of Labor says the state paid more than $649 million in benefits to out-of-work recipients over the past 12 months. During the same period, the state collected more than $533 million.
There is still nearly $510 million in the fund.
The state labor commissioner is expected to increase the tax rate on employers starting in January. The state can also borrow money from the federal goverment.
