The Brewing Messaging Battle Over Unemployment Debt
Governor JB Pritzker and Democrats celebrated passage of legislation to spend $2.7 billion of federal bailout dollars to pay down state unemployment insurance debt, but Republicans say a $2 billion hole remains.
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OPINION
The Senate followed up on Wednesday’s House action passing a $2.7 billion expenditure of federal bailout dollars to shore up the state’s unemployment insurance fund.
Democrats celebrated in a hastily-called news conference in the Governor’s office Thursday afternoon praising themselves for not closing the hole in the UI Trust Fund.
From Andrew Adams of the SJ-R:
Heated partisan arguments on the bill were common, with some lawmakers breaking their usual decorum to express frustration.
"I wish to be recorded as a hell no," said Sen. Terri Bryant, R-Murphysboro, after a technical issue prevented her vote from being initially recorded.
The bill, in addition to appropriating $2.7 billion of ARPA funds to the unemployment insurance trust fund, also allocates $898 million to unpaid group health insurance bills, $280 million to go to unfunded liabilities to the College Illinois program and $300 million to pay down the state's pension liabilities beyond the statutory requirement.
"Our recovery from the pandemic has been strong and we have demonstrated prudence in our priorities — paying down debt, committing to increasing our reserves and making historic pension payments to reduce our overall pension liabilities," said Pritzker on Thursday afternoon.
Pritzker also took aim at Republicans who opposed the package, saying the opposition was motivated more by politics than governance.
"Republicans chose talking points over real solutions," he said. "Every Republican voted against paying down our state's debts."
Essentially, though, unless Democrats move more funds around, it’s going to force higher unemployment insurance premiums on business owners and/or cuts in unemployment benefits. That’s the message Republicans are using, especially knowing Democrats are leaving Biden bucks out there for use on other problems.
Business groups like the Illinois Retail Merchants Association, Illinois Manufacturers’ Association, Illinois Chamber and NFIB, are minding their pints & quarts on this one, issuing a non-statement statement yesterday.
"We’re hopeful that negotiations will continue to resolve the remaining balance of this unprecedented deficit,” the group wrote. When I asked a spokesman about higher premiums on business, he punted.
There isn’t a great solution to the situation, but I’d love to see a list from Republicans that outlines what bailout money they would want to move from other projects to the UI Trust Fund.
