* From a Crain’s Chicago Business op-ed by Gov. JB Pritzker, Senate President Don Harmon and House Speaker Chris Welch…

First, we believe it’s important to pay the remaining $2.5 billion of COVID-related Federal Reserve short term debt, and the unpaid bills and borrowing incurred over the last year that allowed us to protect working families from devastating cuts to our public schools, health care and human services, keeping the lights on in the darkest days of the pandemic. In Illinois, we’re all too familiar with how debt and accrued interest can cripple a state budget. Paying off these bills immediately will avoid interest charges and put us in a stronger fiscal position for the future.

Second, at the heart of our agenda are the working families and everyday Illinoisans who have too often in the past been left out and left behind. That’s why the ARP funds must also be dedicated to spurring job creation and igniting economic growth. Putting people to work and growing our state’s economy means accelerating our infrastructure plans for rebuilding Illinois, supporting small businesses—our greatest job creators—and making sure our educational and health care institutions thrive.

Over the last year, fiscal discipline and a science-based pandemic response has meant that our state economy and fiscal situation are stronger than expected. In fact, over the last month, investors and credit rating agencies have taken a more positive view of Illinois’ fiscal future. That’s an important signal to workers and job creators that Illinois is on a good path toward a firm fiscal foundation.

We need to stay the course by managing our state and federal funds responsibly and we are committed to doing so.

* Greg Hinz has some analysis…

The column particularly deals with the $7.5 billion the state expects to receive in one-time funds under President Joe Biden’s $2.9 trillion national plan, which was approved several weeks ago by Congress on a party-line vote.

The governor and legislative leaders make it clear that repaying loans will be the top priority. […]

According to Illinois Comptroller Susana Mendoza, outstanding COVID-related debt includes $2.425 billion still owed to the U.S. Federal Reserve under its Municipal Liquidity Facility borrowing program, $1.043 billion in intrafund borrowing to shore up day-to-day spending in the state’s operating (general funds) account and $400 million in other borrowing. […]

After paying that debt and spending other funds that Congress earmarked for specific purposes, between $1 billion and $1.5 billion will be leftover for the Legislature to spend otherwise, Springfield sources say. And it’s in that area that today’s column offers some hints.