Lawmakers advance $1.8 billion unemployment fund bailout
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – On the final day of their fall veto session, Illinois lawmakers on Thursday advanced a pair of bills that would infuse $1.8 billion into the state’s unemployment trust fund, which was depleted during the economic shutdown brought on by the COVID-19 pandemic.
The bipartisan agreement came together after more than a year of negotiations between business and labor organizations, the governor’s office and lawmakers from both sides of the aisle.
Without the package, the state unemployment insurance premiums charged to employers would have skyrocketed over the next several years, likely coinciding with a reduction to benefits paid to unemployed workers who are covered by the program.
“As everyone knows, as a result of the COVID pandemic, there was a historic amount of unemployment here in Illinois and the rest of the world,” Rep. Jay Hoffman, D-Swansea, said while explaining one of the bills.
That drove the fund from a surplus exceeding $1 billion to a deficit of $4.5 billion at the height of the pandemic.
“So, ultimately, we had to figure out what we were going to do,” he said.
Illinois, like many states, was able to borrow the $4.5 billion from the federal government to keep the unemployment insurance program going during the pandemic, but that debt had been accruing interest at a rate of 1.59 percent.
In March, lawmakers approved $2.7 billion from federal American Rescue Plan Act funds to pay down the balance. And in September, after the unemployment rate had returned to normal levels, the state made another $450 million payment out of program-related revenues. That brought the balance due to just under $1.4 billion.
The plan now moving through the General Assembly calls for using excess revenues the state has seen this year to pay off the remaining $1.37 billion owed to the federal government, plus another $450 million in the form of a zero-interest loan to the trust fund that is to be paid back over the next 10 years.
In order to generate the money to pay back that loan, employers will see an increase in the amount they pay into the fund in the form of insurance premiums. But even with that, officials said, they will see a $915 million savings compared to what they otherwise would have had to pay if no deal had been reached.
Two bills were necessary to execute that package. House amendments to Senate Bill 1698 authorized the structure of the program. It passed both chambers on Thursday by wide margins: 95-8 in the House and 45-8 in the Senate.
A separate bill containing the actual appropriation, an amendment to Senate Bill 2801, cleared the Senate, 46-9.
But due to procedural rules, the House was not allowed to vote on it immediately. Instead, the lower chamber is expected to take up the bill during a lame duck session tentatively planned for the first week of January.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government. It is distributed to more than 400 newspapers statewide, as well as hundreds of radio and TV stations. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Area wrestlers advance to sectionals
Spread the loveFrom Staff Reports The following wrestlers have qualified for sectional competition after placing in the top three at their respective regional tournaments. (Name, class, finish at regional) Class 3A Marist Regional Marist George Marinopoulos, Fr, 2nd at 106 Michael Esteban, Fr, 1st at 113 Will Denny, Fr, 2nd at 120 Jesse Herrera,…
Mayor ‘out of control,’ hero says
Spread the lovePolice ranks ‘thousands’ short, dispatcher tells Scottsdale By Tim Hadac It’s not every day that a City worker has the courage to attend a public meeting and call a mayor “out of control.” But Keith A. Thornton Jr. did exactly that earlier this week on the Southwest Side. A 911 dispatcher hailed as…
Rockie is the new kid on the block
Spread the love While some folks see heavy snowfall and curse the skies, children across the Southwest Side seemed thrilled with last week’s winter windfall. Schools cancelled classes, and kids like 9-year-old Rosie Arroyo showed her creativity by working with her father, Raul, to build a snowman in front of their home near 49th and…
Kaegi, legislators, advocates unveil affordable housing initiative
Spread the loveFrom staff reports Cook County Assessor Fritz Kaegi was joined by state legislators and affordable housing advocates earlier this week to launch the Affordable Housing Special Assessment Program, a new form of property tax relief recently signed into law. Kaegi worked with legislative partners who passed the law last spring, including State Sens.…
Lopez nixes dibs
Spread the love While calling dibs on parking spaces in the winter is an informal tradition in the city, 15th Ward Ald. Raymond Lopez recently reminded his constituents in Back of the Yards, Brighton Park, Gage Park and West Englewood that no one may call dibs indefinitely. He instructed his Streets and Sanitation ward superintendent…
St. Dan’s Summerfest to return
Spread the lovePopular event was gone for several years By Tim Hadac Details are just starting to emerge, but it looks like St. Daniel the Prophet Parish’s Summerfest will return in 2022, after an absence of several years. The family-focused event is set for Thursday, June 16 through Sunday, June 19 on parish grounds at…
Skating is winter’s silver lining
Spread the loveBy Joan Hadac Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • joan.hadac@gmail.com Hi everyone. As I write this, snowmageddon is raging outside. I’m not sure how many inches we have as of yet, or how many we will end up with; but I hope by the time you read this, we are…
Property tax bills due soon, Pappas says
Spread the loveFrom staff reports Cook County Treasurer Maria Pappas recently mailed nearly 1.8 million Tax Year 2021 First Installment property tax bills. Payments are due March 1, 2022. The First Installment is 55% of the previous year’s total tax. Exemptions that can reduce a property owner’s taxes are applied to the Second Installment bill.…
Marchers welcome in St. Patrick’s Day parade
Spread the loveBy Tim Hadac Southwest Side organizations are welcome to march in the community’s annual St. Patrick’s Day parade, set for Saturday, March 12. It is anticipated that local schools, churches, Scout troops, youth athletic associations and others will have units in the parade. Units will have to register in advance with parade organizers.…
Neighbors
Boys Volleyball | Sandburg seeks 26th regional title
Spread the loveBy Randy Whalen Correspondent Coming off the worst season in program history in 2023, Sandburg was not going to settle for anything less than better results this year. Past the midway point of this season, however, the Eagles had a record of 11-8. But they closed the regular season strong, winning 11 of…
Baseball | Red-hot Reavis looks to make noise in postseason
Spread the loveBy Xavier Sanchez Correspondent Reavis is determined to send their head coach Don Erickson into retirement on a high note and will head into the postseason red hot and as South Suburban Red champions. The Rams defeated Oak Lawn 3-0 for the second straight day on May 15 to clinch the conference title.…
Sports Bits | Rice boats at Carlyle Lake, Hawkeye DB and Do It Stevie’s Way
Spread the loveBy Jeff Vorva Correspondent Noteworthy sports briefs from May 12-19 • Brother Rice’s No. 1 boat of Joe Hall and Joe Judeh took 31st in the state bass fishing tournament, which wrapped up on May 18 at Carlyle Lake. The Crusaders had a two-day haul of 7 pounds, 12 ounces. The Crusaders’ No.…
Nothing NU at SeatGeek
Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…
College Softball | Close losses at nationals end Saint Xavier’s season
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…
Red Stars’ Naeher misses loss to Gotham
Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…
Summer calendar filling up quickly
Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…
Shepard’s Kyla Motley cruises to two medals at girls state track finals
Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…
Boys Tennis | Lyons’ Jack McLane and Mason Mazzone win sectional doubles title
Spread the loveBy Jeff Vorva Correspondent The area produced a handful of boys tennis state qualifiers, but only one entry is headed to state as a sectional champion. At the Class 2A Lyons Sectional, the Lions’ Jack McLane and Mason Mazzone were doubles champs. The state meet opens May 23 at various sites in the…
Water Polo | Lyons boys win third state title; girls finish 3rd
Spread the loveBy Jeff Vorva Correspondent The best matchup of the IHSA boys water polo state tournament was arguably in the quarterfinals. That battle between Lyons and New Trier could have been considered the real state championship match. But no matter what, the Lions are state champions. Heading into the postseason, Lyons had just three…