Local legislators tasked with reforming state unemployment program
MORRIS – State Sen. Sue Rezin and Rep. Pam Roth (R-Morris) have been appointed to serve on the Unemployment Insurance Task Force to identify and recommend policy alternatives to address the burgeoning debt plaguing the state’s unemployment insurance trust fund, currently at $2.5 Billion. The Task Force is comprised of designees from the Quinn Administration, two members from each of the four legislative caucuses of the General Assembly and representatives from the business community and organized labor.
Currently, the State of Illinois is borrowing from the federal government to pay the first 26 weeks of unemployment benefits for qualified applicants. All other extended benefits are paid by the federal government (up to 99 weeks). Illinois is currently $2.5 billion in debt to the federal government for the costs of providing unemployment insurance. The state is scheduled to make its first interest payment on this debt to the federal government on September 30; expected to cost upwards of $70 million. The Task Force will conduct a comprehensive study and recommend a specific set of policy proposals to address the shortfall and adequately fund the state’s Unemployment Insurance Trust Fund moving forward.
“I look forward to working with the other members of the committee to study the challenges associated with our state unemployment program and craft meaningful policy solutions to address them together with the business and labor community,” Senator Rezin said. “It is going to take a collaborative effort to achieve the lasting changes we need to restore the fiscal integrity of our state unemployment system.”
“Unemployment insurance is meant to be a temporary safety net for those who lose their job through no fault of their own,” Rep. Roth said. “But what do we do when the state has to borrow billions of dollars from the federal government just to sustain one program? That is the question we must answer to ensure Illinois’ unemployment system is run efficiently and remains solvent for those who truly need it.”
The Task Force is scheduled to continue meeting throughout the remainder of the year and submit a report to the Governor and the General Assembly upon conclusion of their study.