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.
Local News
Capacity crowd speaks out against Evergreen Park dispensary
Spread the loveBy Joe Boyle Additional chairs had to be brought out to seat an overflow crowd of Evergreen Park residents who attended a meeting April 15 regarding a proposed cannabis dispensary for the village. And many who were in attendance voiced their opposition to having a dispensary in Evergreen Park. Most of the people cited…
Countryside puts dog park on hold, will require leashes in two parks
Spread the loveBy Steve Metsch The city of Countryside has put on hold building a dog park, but canines and their owners are still in store for a treat. The city council has unanimously approved a plan to permit dogs in City Park and Countryside Park this year. Previously, they were not allowed in the…
Bridgeview approves auto repair shop
Spread the loveMoves up time for May 1 village board meeting By Steve Metsch Bridgeview is getting a new automotive repair shop. The village board at its April 17 matinee meeting approved a special use permit that will allow a repair shop at 9010 S. Beloit Ave. There was no discussion among trustees. The board…
Summit Fire Department blood drive draws a crowd
Spread the loveBy Carol McGowan The Summit Fire Department, along with the Village of Summit, and the Argo Summit Lions Club held a blood drive this past Saturday, and it drew a crowd that even impressed the American Red Cross. It took place from 9 a.m. until 2 p.m. with non-stop donors walking through the…
Hodgkins toasts village businesses
Spread the loveBy Carol McGowan Hodgkins Mayor Ernest Millsap and the Board of Trustees celebrated the village’s businesses at its annual Business Appreciation Breakfast on April 10. Over 100 people gathered at the Hodgkins Administration Center for a hearty breakfast hosted by the village. Representatives from many businesses that are located in or that work…
Pickleball courts coming to Palos Park
Spread the loveBy Jeff Vorva There will finally be outdoor pickleball in Palos Park. In a process that went longer than anticipated, the Palos Park Village Council was able give the green light to get a pickleball project started on the Village Green. The council voted April 8 to award the contract to U.S. Tennis…
First Secure Bank to host American Eagle gold coin sale
Spread the loveFrom staff reports First Secure Bank & Trust of Palos Hills announced its annual May sale of 1-ounce and ¼-ounce American Eagle Gold Coins, produced by the U.S. Mint, will take place from 10 a.m.to noon on Saturdays, May 4, May 11, May 18 and May 25. The sale will take place at…
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…
Neighbors
No injuries in basement fire in Orland Park apartment
Spread the loveFrom staff reports A basement fire damaged a four-unit apartment building early Sunday morning in Orland Park. The fire was extinguished quickly and damage was kept to a small area of the basement, although smoke filled the building. Officials of the Orland Fire Protection District said there were no injuries and the cause…
Worth hires new management for Water’s Edge Golf Course
Spread the loveBy Joe Boyle Even an impending snowstorm could not damper the mood of Worth Trustee Laura Packwood regarding plans for the village’s Water’s Edge Golf Course. Packwood, who is the head of the golf committee, said that Orion, a company based out of Kansas City, Mo., became the official managers of Water’s Edge…
Cook County residents eligible for spay/neuter discounts in February
Spread the lovePet owners can bring their dogs and cats to participating veterinarians throughout Cook County to receive a $40 discount on spay or neuter services in February. The Cook County Department of Animal and Rabies Control are offering the spay and neuter program during February – Spay and Neuter Awareness Month. More than 200…
Teen driver charged in crash that killed Alsip girl
Spread the loveBy Bob Bong A juvenile was charged by Palos Heights police Monday with reckless homicide and reckless driving in the December 27 crash that killed a 14-year-old girl from Alsip and injured six other people. Palos Heights police did not identify the juvenile because of the driver’s age. The driver was charged with…
Let us grow, let us grow, let us grow
Spread the love The weather outside may be frightful, but the learning at St. Sym’s is delightful, is the message implied in a bulletin board designed by third grader Olivia Hernandez. School officials said Olivia was given the opportunity to design the bulletin board as a reward for the kindness she shows at school. Catholic…
Cold weather, warm hearts
Spread the loveBy Joan Hadac Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • joan.hadac@gmail.com Hi everyone. Welcome to February, the shortest month of the year, jam-packed with holidays like Lincoln’s Birthday, Washington’s Birthday–which are usually bundled together into Presidents Day–Groundhog Day, Mardi Gras, Ash Wednesday and Super Bowl Sunday. (Some of us just check…
‘Once in a lifetime’ funding coming
Spread the loveGov’t. invites biz owners, non-profits to apply From staff reports Local business owners and community-based non-profit leaders are invited to attend an online meeting designed to raise awareness of the American Rescue Plan Act and other economic recovery funding opportunities, and better understand what they need to do to be eligible for these opportunities. Dubbed…
Crime fighters will meet
Spread the loveBy Tim Hadac Residents of Police Beat 812 (Clearing, west of Central Avenue) are invited to attend their next CAPS meeting, set for 7 p.m. Wednesday, Feb. 9. The meeting will be held via Zoom in a webinar format. To obtain instructions and passcodes, call the Chicago Lawn (8th) District CAPS Office at…
Planned park in Palos Heights will have Olympic theme
Spread the loveBy Jeff Vorva The Misty Meadows subdivision in Palos Heights is getting a new park and it will be partially funded by a pair of famous local athletes. Plus, it will have an ice rink and an Olympic theme. NFL player Michael Schofield and his Olympic hockey gold- and silver-medal-winning wife, Kendall Coyne…