State disability funds going broke, and going away - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

State disability funds going broke, and going away

JEFFERSON CITY, Mo. (AP) - During the World War II era, many states created special disability funds to encourage businesses to hire wounded veterans. The funds paid the tab should a disabled soldier suffer a second, debilitating injury in a private-sector job.

Over the ensuing decades, those funds provided aid not to only veterans, but to thousands of other disabled workers.

Now as a new generation of wounded warriors returns from Iraq and Afghanistan, about 20 states have shut down their special disability funds because of rising costs. Other funds are teetering on insolvency.

Some veterans' advocates are concerned about the disappearance of the funds. But critics say the funds are no longer essential, because disabled workers have more legal protections than during the World War II era.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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