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
Community pride is flying high
Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . It’s a “banner day” in Garfield Ridge! If you take a look around the neighborhood, you’ll see brand new Garfield Ridge community signs hanging from the light posts running along Archer. What a wonderful way to highlight…
Softball | Mother McAuley seeks to right ship
Spread the loveFrom Staff Reports The 2024 season is off to an uneven and somewhat rocky start for Mother McAuley. The Mighty Macs opened the spring with consecutive losses — 9-3 to Oak Forest on March 11 and 18-1 to Benet on March 13 — before getting off the schneid with an 18-1 win over…
Boys Basketball | Players from Evergreen Park and Brother Rice to ball at prospect showcase
Spread the loveBy Jeff Vorva Correspondent Five players from the area have been invited to play on the South Suburban Team at the Illinois Hoop Prospect Senior All-Star Games scheduled to be played March 24 at Joliet Junior College. Brother Rice’s Zavier Fitch and Ty Wooten join Evergreen Park’s Nolan Sexton, Marist’s Darshan Thomas and…
Girls Basketball | George Shimko takes reins for Mustangs
Spread the loveBy Jeff Vorva Correspondent One longtime area basketball coach will succeed another at Evergreen Park. George Shimko, who brought success to the girls basketball programs at Queen of Peace and St. Laurence, has been named the new girls hoops coach at Evergreen Park. He will succeed Bruce Scaduto, who retired after 27 years…
De La Salle tabs Harold Blackmon as next football coach
Spread the loveBy Jeff Vorva Correspondent A pair of familiar coaches from the area have landed in new spots. Harold Blackmon, who has been head football coach at St. Laurence and Oak Lawn, has been named coach at De La Salle. George Shimko, a former girls basketball coach at Queen of Peace and St. Laurence,…
Red Stars, rugby will highlight big weekend at SeatGeek
Spread the loveBy Jeff Vorva Correspondent Things will get busy in Bridgeview this weekend. The Chicago Fire II will host its season opener against Toronto FC II at 6 p.m. Friday, March 22 at SeatGeek Stadium. The following day, the Chicago Red Stars make their 2024 home debut against Seattle at 3 p.m. Rugby invades…
Red Stars Report | Cooks provide recipe for success in Red Stars’ win over Utah
Spread the loveBy Jeff Vorva Correspondent The Lorne Donaldson era is already Cook-ing. The new Chicago Red Stars coach enjoyed a victory in his debut with a 2-0 triumph over Utah in the NWSL season-opener for both teams on March 16 at America First Field in Sandy, Utah. The game was the first in franchise…
College Sports Wrap | Morton College OF Angelo Luna slugs two grand slams in one day
Spread the loveBy Jeff Vorva Correspondent Area college baseball sluggers had a grand time on March 16. Former St. Laurence standout Angelo Luna, a sophomore outfielder at Morton College, hit two grand slams and drove in 10 runs over two games as the Panthers beat Highland, 7-3 and 18-5, in a doubleheader at home. Luna…
College Notebook | Ex-Mount Carmel wrestler Sergio Lemley takes fourth in Big Ten
Spread the loveBy Mike Walsh Correspondent One reason the Michigan wrestling team has been successful this season is freshman Sergio Lemley. At the Big Ten tournament, Lemley won three of his five matches to finish fourth at 141 pounds. The Wolverines placed second with 123.5 points behind conference champion Penn State (170.5). In the consolation…
Man accused in McCook murder to plead not guilty
Spread the loveBy Steve Metsch Sisto Brito, the man charged with murdering a Blue Island man in McCook in February, will plead not guilty at his upcoming arraignment, his attorney said. A brief status hearing was held Friday morning before Associate Cook County Circuit Court Judge Mohammed M. Ghouse in Room 103 of the Bridgeview…
Neighbors
Community pride is flying high
Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . It’s a “banner day” in Garfield Ridge! If you take a look around the neighborhood, you’ll see brand new Garfield Ridge community signs hanging from the light posts running along Archer. What a wonderful way to highlight…
Softball | Mother McAuley seeks to right ship
Spread the loveFrom Staff Reports The 2024 season is off to an uneven and somewhat rocky start for Mother McAuley. The Mighty Macs opened the spring with consecutive losses — 9-3 to Oak Forest on March 11 and 18-1 to Benet on March 13 — before getting off the schneid with an 18-1 win over…
Boys Basketball | Players from Evergreen Park and Brother Rice to ball at prospect showcase
Spread the loveBy Jeff Vorva Correspondent Five players from the area have been invited to play on the South Suburban Team at the Illinois Hoop Prospect Senior All-Star Games scheduled to be played March 24 at Joliet Junior College. Brother Rice’s Zavier Fitch and Ty Wooten join Evergreen Park’s Nolan Sexton, Marist’s Darshan Thomas and…
Girls Basketball | George Shimko takes reins for Mustangs
Spread the loveBy Jeff Vorva Correspondent One longtime area basketball coach will succeed another at Evergreen Park. George Shimko, who brought success to the girls basketball programs at Queen of Peace and St. Laurence, has been named the new girls hoops coach at Evergreen Park. He will succeed Bruce Scaduto, who retired after 27 years…
De La Salle tabs Harold Blackmon as next football coach
Spread the loveBy Jeff Vorva Correspondent A pair of familiar coaches from the area have landed in new spots. Harold Blackmon, who has been head football coach at St. Laurence and Oak Lawn, has been named coach at De La Salle. George Shimko, a former girls basketball coach at Queen of Peace and St. Laurence,…
Red Stars, rugby will highlight big weekend at SeatGeek
Spread the loveBy Jeff Vorva Correspondent Things will get busy in Bridgeview this weekend. The Chicago Fire II will host its season opener against Toronto FC II at 6 p.m. Friday, March 22 at SeatGeek Stadium. The following day, the Chicago Red Stars make their 2024 home debut against Seattle at 3 p.m. Rugby invades…
Red Stars Report | Cooks provide recipe for success in Red Stars’ win over Utah
Spread the loveBy Jeff Vorva Correspondent The Lorne Donaldson era is already Cook-ing. The new Chicago Red Stars coach enjoyed a victory in his debut with a 2-0 triumph over Utah in the NWSL season-opener for both teams on March 16 at America First Field in Sandy, Utah. The game was the first in franchise…
College Sports Wrap | Morton College OF Angelo Luna slugs two grand slams in one day
Spread the loveBy Jeff Vorva Correspondent Area college baseball sluggers had a grand time on March 16. Former St. Laurence standout Angelo Luna, a sophomore outfielder at Morton College, hit two grand slams and drove in 10 runs over two games as the Panthers beat Highland, 7-3 and 18-5, in a doubleheader at home. Luna…
College Notebook | Ex-Mount Carmel wrestler Sergio Lemley takes fourth in Big Ten
Spread the loveBy Mike Walsh Correspondent One reason the Michigan wrestling team has been successful this season is freshman Sergio Lemley. At the Big Ten tournament, Lemley won three of his five matches to finish fourth at 141 pounds. The Wolverines placed second with 123.5 points behind conference champion Penn State (170.5). In the consolation…
Man accused in McCook murder to plead not guilty
Spread the loveBy Steve Metsch Sisto Brito, the man charged with murdering a Blue Island man in McCook in February, will plead not guilty at his upcoming arraignment, his attorney said. A brief status hearing was held Friday morning before Associate Cook County Circuit Court Judge Mohammed M. Ghouse in Room 103 of the Bridgeview…