Dupage Policy Journal

Illinois Rep. Seth Lewis (R-Bartlett) said the American Rescue Plan Act is to be used to address the state's unemployment insurance.

“Instead of using the money our state has from the American Rescue Plan Act to pay off our unemployment insurance trust fund debt in full, the supermajority decided to leave over half of that debt remaining,” Lewis said on his website. “This will result in tax hikes on jobs and decreased benefits. I am disappointed that, despite there being a common-sense solution, this is the path that was taken. I hope the General Assembly can move forward and work together to implement fiscal responsibility in Springfield that does not hurt workers and businesses.”

A bill is also proposed in an effort to lower the debt.

Senate Bill 2803 would allocate $2.7 billion from the State Coronavirus Urgent Remediation Emergency Fund to pay down the Unemployment Insurance Trust Fund debt. State Sen. Linda Holmes (D-Aurora) and Rep. Greg Harris (D-Chicago) are chief sponsors of the legislation.  

Illinois Democrats and Republicans share similar interests in the issue.

“Ladies and gentlemen, this is what fiscal responsibility looks like," House Majority Leader Greg Harris said to WIFR. "Paying your bills, taking care of your obligations - that’s what it looks like. I know this is a sad night because you want the talking point, not the solution. But tonight, we’re providing the solution.”

WIFR reported the total debt of $4.5 billion is due to the federal government by Nov. 10, but there is an interest payment of almost $80 million due on Sept. 30. SB2803 passed by a partisan vote of 68-43 on March 23.

KPIV reported the debt accrued after the state borrowed from the federal government earlier in the pandemic.

“This process should be bipartisan,” Rep. Marcus Evans (D-Chicago) said to WIFR. “It should be business, labor, Republicans, and Democrats. That’s what it will continue to be moving forward. Hopefully, future votes will reflect that. We took big steps here in this state to help folks.”

The Center Square reported Illinois Department of Employment Security Director Kristin Richards told the Illinois Senate that more than 18% of unemployment insurance payments were paid “improperly.” Richards did not provide an estimate of the dollar amount of fraud, but stated that Arizona, Michigan and Pennsylvania have estimated between $4 and $6 billion in fraudulent payments.