Capitol Fax.com - Your Illinois News Radar » State accumulating interest on unemployment insurance debt at about $2 million a week
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
State accumulating interest on unemployment insurance debt at about $2 million a week

Friday, Jan 7, 2022

* This non-GRF debt has been piling up at about $2 million a week since September, when the state made its last payment. Here’s Greg Hinz

As Springfield prepares for an abbreviated spring legislative session, one issue that hasn’t received much attention beyond the pages of Crain’s is about to pop to the fore. That’s how the state—and its employers and workers—will pay off a $4.5 billion debt in Illinois’ unemployment insurance program. […]

The jobless figures since have slid down, with the Illinois unemployment rate now at 5.7%. But the state still owes Uncle Sam and, with hopes fading that Congress will forgive the debt, the feds are entitled to their money and roughly $2 million a week in interest. […]

[Illinois Comptroller Susana Mendoza] says the state probably will have to tap some of the roughly $3.2 billion in funds left over from the last federal COVID relief bill, known as the American Rescue Plan Act of 2021, or ARPA.

* Greg interviewed Speaker Chris Welch today and brought up the subject

Greg Hinz: Mendoza was suggesting just the other day that we ought to tap some of these ARPA funds, the federal covid relief funds that we still aren’t available to deal with it. I hear even from some labor folks, they’re worried that if you guys don’t do anything, some benefit cuts would automatically go into effect. Do you expect to deal with that issue and if so, how?

Speaker Welch: I had a conversation with Comptroller Mendoza this week in Springfield. It’s something that we talked about when we announced that we were paying off the balance on the loan that we took out two years ago. And now this is something that we’re turning our attention to. This is an issue that is on the table for us to address. We agree that it’s something we want to address. How we want specifically to do it, we don’t know yet. It’s still early. But this issue is on the table for us to come up with a solution to

A.D. Quig: Are you open to using ARPA dollars to pay back a significant portion of that loan?

Speaker Welch: Well, I’m sure we’re gonna have to use some portion of the ARPA dollars to pay that back. Again, I don’t want to get ahead of the process. I want to make sure all stakeholders have input on this, the Senate side the governor’s office. But I think we’re going to have to be open to anything. And certainly that’s a real possibility.

As always, please excuse all transcription errors.

The governor’s office told me that agreed bill process meetings are starting “and we’re going to work together to find a responsible solution.”

If not, there’s going to be a large tax hike on employers and a big benefit cut for unemployed workers.

- Posted by Rich Miller        

6 Comments »
  1. - Donnie Elgin - Friday, Jan 7, 22 @ 12:17 pm:

    Illinois politicians have a knack for using federal Covid relief dollars creatively…

    “Lightfoot no doubt saw the arrival of billions of federal dollars as a partial exit from the city’s financial serfdom. However, paying banks was never the intended use of those relief moneys; in fact, the Federal Reserve explicitly prohibited using funds for debt service. Nonetheless, the Lightfoot administration proposed a workaround, by essentially paying down debt service from the city’s corporate fund, and then redirecting relief dollars into that fund”

    https://www.thenation.com/article/politics/chicago-teachers-banks-lightfoot/


  2. - Nick - Friday, Jan 7, 22 @ 12:26 pm:

    Wasn’t there an issue with the treasury not allowing/being clear about ARPA funds being okay for paying off unemployment debt? Or am I confusing that the GRF loan.


  3. - Cool Papa Bell - Friday, Jan 7, 22 @ 2:14 pm:

    At $2 million a week I sure would come up with a solution sooner rather than later.

    And to the Lightfoot move - I’ve wondered a good deal about that. If you just change your budget around for a year or two and direct funds to other areas can’t you just backfill with ARPA? It would seem a big work around to say backdoor in a large pension paydown for a city.


  4. - Blue Dog - Friday, Jan 7, 22 @ 2:26 pm:

    This is a making by the Feds. The solution should come out of the Feds. Better hope there is some compromise in the senate soon on some issues. Illinois employers cannot handle this.


  5. - walker - Friday, Jan 7, 22 @ 2:34 pm:

    Paging Susana.


  6. - 4 percent - Friday, Jan 7, 22 @ 3:49 pm:

    There is a solution - ARPA dollars - which is what dozens of states have done. Illinois is one of only eight states that still has UI debt.

    The $100 million in last year’s budget was not used to pay down debt but rather to fund non-educational employee benefits and cover the overpayments made to workers. Instead of requiring people to return overpayments, Illinois allowed them to keep it and funded it with ARPA.


TrackBack URI

This is not Facebook, so uncivil comments, profanity of any kind, rumors and anonymous commenters will not be tolerated and will likely result in banishment.



* House returns to session next week, but gallery will be closed to public during Pritzker's address
* Question of the day
* *** UPDATED x1 *** Campaign notebook
* Do better, DCFS
* It's just a bill
* Another school district warns of "adaptive pause," move to remote learning if DeVore wins in court tomorrow
* Jesse Sullivan said he would "absolutely" use the National Guard to hunt down violent criminals, calls pandemic mandates "unAmerican"
* Harmon on retail theft proposals, items from a recent budget poll, pandemic laws and the state of American democracy
* Small Shift, Big Impact. A Better World With Biodiesel.
* Irvin hit on his National Guard claims, his 2018 Rauner endorsement and for touting support from a 1/6 conspiracy theorist
* Rate Gov. Pritzker's two new TV ads
* Open thread
* *** LIVE COVERAGE ***
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller