UPDATED 11:08 A.M. 3/25/22
Governor JB Pritzker signed the legislation Friday morning.
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SPRINGFIELD, Ill. – Both sides are accusing the other of playing politics, now that both legislative chambers in Springfield have fully approved a measure that allows the state to use federal American Rescue Plan money to pay more than $4 billion in state debt.
Governor JB Pritzker says since no Republicans approved the move, that party turned its back on the state.
“It drives me crazy, to see that it drives them crazy, to acknowledge that Democrats have done what their party hasn’t done: pay down debt and balance the budget, while giving people real tax relief,” said Pritzker, at a news conference in his Springfield State Capitol office Thursday.
Republican State Senator Win Stoller, meanwhile, says the Governor doesn’t know what to do from here in order to fully resolve the state’s unemployment trust fund debt.
“I said, ‘What’s the rest of your plan?’ Today, I asked the same question. The reason is, there is no plan. There is no agreed bill, there is no solution in place,” said Stoller (R-Germantown Hills), to provide more help to the state unemployment trust fund. Stoller says the state should have done what Texas did, and use more of the federal money to help that fund.
Pritzker doesn’t blame one political party or the other for were some fo the money will be going.
“There’s $900 million in legacy bills owed for state employee health insurance — money that, for years and many administrations, was punted from one budget to the next,” said Pritzker. “That will now be paid off.”
Stoller says the state continues to rob Peter to pay Paul.
“We’re facing the possibility of one of the largest tax increases on employers in Illinois history,” said Stoller. “We’re facing the possibility of significant benefit cuts to people who need them most: unemployed workers. We’re facing the possibility of borrowing our way out of this problem, with additional bonding debt.”
According to Pritzker’s office, here’s what will be paid with the money:
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$2.7 billion to support small business balance sheets through assisting the unemployment insurance trust fund
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$898 million in legacy debt for state employee health insurance – money that previous administrations have punted from one budget to the next.
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An extra $300 million payment to our state’s pension funds, which will reduce liabilities by $1 billion between now and 2045
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More than $200 million to pay off College Illinois, the 1990s prepaid tuition program for Illinois families that has been on the verge of insolvency for years. This one-time payment will save taxpayers $75 million in unnecessary costs over the remaining life of the program. (Source: State of Illinois)
Pritzker says he will sign the measure as soon as it reaches his desk.
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