State plans early payoff of Fed loans

State plans early payoff of Fed loans

By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com

SPRINGFIELD – Gov. JB Pritzker and other Democratic leaders announced Thursday that they have agreed to a plan to repay the money Illinois borrowed from the Federal Reserve during the COVID-19 pandemic before the end of the next fiscal year.

Illinois borrowed $3.2 billion from the Fed through a program that Congress established under the Coronavirus Aid, Relief and Economic Security, or CARES Act to help states that saw dramatic declines in revenue during the peak of the pandemic. Of that, roughly $2 billion remains outstanding.

That money was to be repaid in three installments by December 2023. But in a news release, Pritzker said the state’s recent economic performance and stronger-than-expected revenue growth will allow it to pay off the loan early, saving the state about $100 million in interest charges.

“Repaying the federal government is an important step in our efforts to ensure the state remains on sound fiscal footing,” Pritzker said in a statement released Thursday afternoon. “The General Assembly has been a critical partner in utilizing the federal dollars to help the most vulnerable get through the pandemic. I also credit the Comptroller in strategically managing cash flow in these trying times.”

But even without the debt repayment cost, Illinois faces a number of significant fiscal challenges over the next year.

During a news conference earlier in the day, House Majority Leader Greg Harris, D-Chicago, said the proposed budget as it stands now is about $1.3 billion out of balance and that lawmakers are faced with a choice of spending cuts, revenue enhancements or a combination of both in order to get through the year.

Last week, the Governor’s Office of Management and Budget revised its revenue estimates for the current fiscal year upwards by nearly $1.5 billion and by $842 million for the upcoming fiscal year.

Pritzker attributed that improved performance to state programs during the pandemic that targeted sectors of the economy such as small businesses and child care providers, as well as effective cash management by Comptroller Susana Mendoza.

The statement from the governor’s office noted that final income tax payments received earlier this week, along with stronger year-to-date receipts in the state’s main revenue sources – individual and corporate income taxes and sales taxes – will allow the remainder of the repayment to occur beginning in the next several months. 

Earlier, officials had hoped to use a portion of the $8.1 billion in fiscal relief Illinois will receive through the recently-passed American Rescue Plan to pay off the loans, but the Treasury Department has issued interim rules that prohibit the use of those funds to pay off state debt.

“So we’ve been working very hard with the governor and the Senate to devise a plan to make our full repayments using state resources,” Harris said. “So I think that’s very important that we’re meeting all of our obligations, and we’re going to get that done and we’re going to figure out then how to balance our operating budgets as well.”

House Speaker Emanuel “Chris” Welch, D-Hillside, said in the statement that lawmakers would continue to work with the governor’s office to establish a “targeted spending plan” for the federal relief funds to address issues such as affordable housing, community-based mental health and substance abuse services and upgrades to hospitals serving areas disproportionately impacted by the pandemic.

Senate President Don Harmon, D-Oak Park, called the federal loans “a lifeline to keep our state and our economy afloat” during the pandemic.

“That our economy has rebounded so strongly that we can now pay it off early is a testament to the resilience of the people and businesses of the great state of Illinois,” he said in the statement.

 

Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.

Leave a Comment





Local News

Kathy Headley

You can bank on good service here

By Kathy Headley Your correspondent in Chicago Lawn and Marquette Manor 6610 S. Francisco • (773) 776-7778 In this world of corporate takeovers, it is kind of hard to feel safe in the hands of big business. First, we have to supply some of our personal information to the automated system. Then there’s the seemingly…

Palos Park police will hold an active shooter training session on January 30. (Supplied photo)

Palos Park police to hold active shooter drill

From staff reports Palos Park Police will fine tune their strategies for dealing with an active shooter to ensure the safety of both officers and citizens later this month. The end goal of the January 30 drlll is to test the department’s active shooter response plans and fine tune them. “Palos Park effective preventive measures…

Richards High School Principal Dr. Mike Jacobson and several staff members at the high school, 10601 Central Ave., Oak Lawn, walked for 24 hours on a treadmill to raise money for student scholarships starting bright and early on New Year's Day. (Supplied photos)

Richards’ Principal walks 24 hours for a cause

By Kelly White  Most people spend New Year’s Day relaxing. Richards High School Principal Dr. Mike Jacobson spent it on the treadmill. For the second year in a row, Jacobson inspired generous donations of more than $20,000 on New Year’s Day by walking 24 hours on a treadmill without stopping. All of the money raised goes directly to benefit…

Victress Women's Wellness Center, 7120 W. 127th St., Palos Heights, welcomed in the new year with a goal-setting seminar open to women in the local community called, Achieve 2022: This year set goals, not resolutions.  (Supplied photos)

Victress Women’s Wellness Center sets goals for 2022 

By Kelly White  Empowering women in the new year is Victress, a wellness center for women, in Palos Heights. The center opened in October at 7120 W. 127th St. and welcomed in the new year with a goal-setting seminar open to women in the local community called, Achieve 2022: This year set goals, not resolutions.…

Engineer Carl Germann (left) and executive producer Ron Jankowski helped Channel 4 in Palos Heights to a successful 2021. (Photo by Jeff Vorva)

Broadcast news — Palos Heights’ Channel 4 has big 2021

By Jeff Vorva The first Palos Heights city council meeting of 2022 featured a few minutes of bragging about Channel 4’s success in 2021. The local cable channel had a record-breaking year and Alderman Jerry McGovern was more than happy to run down the happy totals at Tuesday’s board meeting at City Hall. There were…

The Rios family plans to make The Great American Bagel shop at 12774 S. Harlem Ave. a go-to breakfast and lunch choice in Palos Heights and beyond. Pictured (from left) are Manny Jr. Manny Sr., daughter Silvia, Mia and mother Silvia Rios. (Photo by Cosmo Hadac)

Experienced bakers buy The Great American Bagel in Palos Heights

New owners nearly double the menu for breakfast, lunch   By Cosmo Hadac When The Great American Bagel’s shop in Palos Heights changed hands late last year, the new owners who walked in the door weren’t exactly new. Manny Rios Sr. and his wife, Silvia, have nearly 50 years of combined experience in the bagel…

SRP-IMAGE-Logo

New owner will keep Palmer Place name and burgers Copy

By  Steve Metsch Palmer Place Restaurant and Biergarten, a mainstay in downtown La Grange for nearly 40 years, will soon have new owners. But not much else will change. The name on 56 S. La Grange Road will still read Palmer Place. The employees now there will still have their jobs. And the hamburgers that…

SRP-IMAGE-Logo

Clear-Ridge Reporter and NewsHound PDF January 19, 2022

Palos Park Mayor John Mahoney and the village council could make a decision on Monday regarding video gaming. (Photo by Jeff Vorva)

Palos Park could be making its decision on gaming on Monday

By Jeff Vorva Will Palos Park make its decision on bringing in gaming machines to the village on Monday? The world will have to wait until Monday to find out. The village council will meet for the first time in 2022 on Monday after its Jan. 10 meeting was cancelled because of a lack of…

Orland Park Mayor Keith Pekau said that mandates from Cook County are unlawful. (Photo by Jeff Vorva)

Pekau takes Rubin and Foxx to task over mandate punishments

By Jeff Vorva Orland Park has Cook’s County’s attention. The village’s decision to vote against enforcing Cook County COVID-19 mandates at a special meeting Dec. 28 has been a hot topic. The village’s position is that businesses need not require proof of vaccination for patrons to enter. Some businesses are taking the board up on…

Neighbors

SRP-IMAGE-Logo

Palos Hills Amends Fireworks Code, Honors Police Achievements

On Oct. 17, Palos Hills trustees unanimously approved stricter penalties for fireworks violations, increasing mandatory fines. Under the updated ordinance, violators—including individuals, businesses, or corporations—will face a mandatory fine of $500 per offense. The new code also specifies that “each day that the offense continues will be treated as a separate offense, resulting in a…

SRP-IMAGE-Logo

Hickory Hills council approves liquor license for St. Patricia Polish Festival

During the Hickory Hills October 24 meeting, the City Council approved a St. Patricia Polish Festival liquor license, scheduled for Saturday, November 9, 2024. The event will be held at St. Patricia’s Parish Center, 9050 S. 86th Ave., celebrating Polish heritage with traditional food, music, and dancing. Mayor Mike Howley initiated the motion for license…

Mayor Mike Howley, Mary Esposito, and City Clerk Joe Stachnik accepting the City Awards at Argonne National Laboratory.

Hickory Hills earns EV readiness recognition from Metro Mayors Caucus

The City of Hickory Hills has been recognized and awarded for completing the EV Readiness Program. The Program involves government initiatives that streamline EV guidelines, expand for EVs, and accommodate best charging practices. Mayor Mike Howley and city Clerk Joe Stachnik brought home several plaques from the Metropolitan Mayors Caucus Ceremony, held on Friday, August…

A youngster flies a kite at Altman Park. (Supplied photo)

Worth Park District has big plans after acquiring Altman Park

Upon the recent acquirement of Altman Park, the Worth Park District has big plans in store for its future. Altman Park is located at West 115th Street in Worth and is just shy of 21 acres of open fields.  There is an outlying building that has restrooms, concessions and a baseball field. The Metropolitan Water Reclamation District of Greater Chicago owned…

13th Ward Ald. Marty Quinn

New ordinance requires rooftop safety measures for firefighters

A new ordinance, spearheaded by Ald. Marty Quinn (13th), will take effect on Jan. 1, 2025, mandating rooftop safety measures to protect firefighters. In the event of a fire, light shafts, light courts, and skylights present grave danger to firefighters. These openings often lack guards or parapets, preventing firefighters from falling. The new ordinance requires…

When Martin Atilano walked up to the library on Oct. 18 he did not know he could access FEMA help to repair his home, he told the Southwest News Herald. (Photos by Robin Sluzas)

July Chicago Lawn tornado victims can get repair help from FEMA

By 9:30 a.m. on Oct. 18, a Saturday morning, the Chicago Lawn neighborhood on the southwest side, home to many Latino residents, was already bustling with energy along Kedzie Avenue near the intersection of 61st Street. It would be hard to believe that just three months earlier, on July 15, an EF1 tornado swept through…

Young runners take over the front of the Howlin' Through the Hills starting line. (Photos by Xavier Sanchez)

Young runners shine at 9th annual Howl Through the Hills 5K

Runners of all ages took to the streets of Hickory Hills for the 9th Annual Howl Through the Hills 5K Run/Walk last weekend. The event, which began at 9 a.m. on Saturday, Oct. 26, started at Hickory Hills City Hall and unfolded on a beautiful, brisk fall day. Hickory Hills partnered with North Palos School…

Ryan Kelly, president and CEO of Kelly Nissan, is ready to cut the ribbon to celebrate the grand re-opening of the Oak Lawn auto dealership on Oct. 18. He is joined behind the ribbon by (from left) Natasha Miller Williams, president of the Oak Lawn Chamber of Commerce; Trevor Kelly, sales manager; Oak Lawn Mayor Terry Vorderer, and Tyler Kelly, the general manager. (Photos by Joe Boyle)

Oak Lawn’s Kelly Nissan dealership celebrates renovation, grand opening

Ryan Kelly, president and CEO of Kelly Nissan in Oak Lawn, said the dealership is entering a new phase for the 21st century. Kelly Nissan, located at 4300 W. 95th St., underwent a complete renovation over the past year. While Kelly acknowledged that the process brought “some headaches,” he believes the overall outcome is positive…

Robert Peplowski, owner of Peppo's Great Sub Sandwiches, cuts the ribbon to mark the grand opening in Orland Park on Oct. 23. He was joined by family, work associates, and members of the Orland Park Area Chamber of Commerce. Located just behind Robert Peplowski is his father, Jim Peplowski, the founder of Peppo's. (Photos by Joe Boyle)

Peppo’s subs stays true to family roots with new Orland Park shop

Robert Peplowski believes that a great sub sandwich can be enjoyed everywhere in the southwest suburbs. And why not in Orland Park? Peplowski felt it was time to do just that, opening the newest Peppo’s Great Sub Sandwiches at 9836 W. 159th St., at the corner of 94th Avenue, near the Orland Park Mall. The…

Co-Chairs of McCord's 2024 Gala, Arlene Adams, Gala Co-Chair and Vice President Board of Directors of McCord Gallery & Cultural Center and Carol Trzcinski, Executive Director of McCord Gallery & Cultural Center. (Supplied photos)

McCord Gallery throws a 20th anniversary party

McCord Gallery & Cultural Center knows how to throw a party. The gallery, 9602 W. Creek Road, Palos Park, hosted its 20th annual fundraising Gala themed, For the Love of Arts – Tapestry…McCord Woven in Time, on Saturday, Oct.5 at Midlothian Country Club, 5000 W. 147th St #1, Midlothian. “Seeing all the enthusiastic guests and…