Governor JB Pritzker has signed legislation that pays down some significant state debts.
The bulk of the money, $2.7-billion, will help replenish the unemployment insurance trust fund. It was depleted paying out benefits during the pandemic. Governor Pritzker says the bill also takes care of other state debt and funds the remaining College Illinois Tuition contracts.
“By following through on our commitments to dedicate one-time revenues to one-time cost or liabilities, we are delivering Illinoisans a stronger budget and a stronger state for years to come.”
Republicans are critical of the bill, including State Senator Terry Bryant. She calls leaving $1.8-billion in debt unfunded in the Unemployment Insurance Trust Fund both ill-advised and financially irresponsible. Bryant says it will force businesses to fill that hole by either paying the highest business tax increase in recent Illinois history or cutting benefits to workers.
Bryant noted that the late additions in the bill, including roughly $1.4 billion of the state’s General Revenue Fund for paying old health insurance bills, a $300 million boost to pension payments, and paying more than $200 million in College Illinois debt, were positive proposals that could have easily gained bipartisan support if they had not been lumped with the shortchanging of the UI Trust Fund.
