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After months of negotiations in working groups throughout the
year, an agreement was announced in November by representatives
from business, labor and members of the General Assembly. The
state still owes more than $1.3 billion that would have hit
taxpayers with an additional $20 million in interest payments
next September.
The remaining $450 million will be placed into the trust fund
from other state funds as an interest-free loan. Then, according
to a news release, funds will be deposited directly into the
state's rainy-day fund as the loan is repaid over the next 10
years.
“We have a good agreement,” said state Rep. Dan Ugaste,
R-Geneva. “It's good for labor, it's good for business, it's
good for the people of the state of Illinois.”
For months, Republican lawmakers and business leaders have been
calling on the state to repay the loan to avoid paying interest.
Rob Karr, president and CEO of the Illinois Retail Merchants
Association, said this agreement is crucial for Illinois
businesses.
“It will ensure greater stability in the unemployment insurance
systems, and means Illinois employers will face at least $900
million less in taxes over five years than they would have
otherwise,” Karr said.
Unemployment spiked during the early weeks of the pandemic after
the governor issued stay at home orders and limited economic
activity by prohibiting in-person service for businesses he
declared nonessential.
A federal report said more than $45 billion has been stolen in
the U.S. from fraudulent unemployment claims, but the state of
Illinois still isn’t revealing how much was stolen.
“Let’s be clear why we are here today. We are here because
Governor Pritzker locked down our economy creating a raid on the
Unemployment Insurance Trust Fund we have never seen before,”
the Illinois Freedom Caucus said in a statement. “We are also
here because JB Pritzker could not figure out how to stop fraud
and waste as the state paid out $2 billion in fraudulent
unemployment claims.”
The final plan is expected to be approved during the final
session days early next month, just before the end of the
current 102nd General Assembly and the beginning of the 103rd
General Assembly Jan. 11.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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