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Manufacturers ask Pritzker to use federal funds to refill state’s frauded unemployment fund

Illinois Review by Illinois Review
October 27, 2022
in Illinois News
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Illinois Manufacturers Severely Concerned with Unemployment Fund Shortfall

Survey Finds 89% Want Governor Pritzker to Allocate Remaining Federal Covid Relief Funds to the Unemployment Fund Deficit

SCHAUMBURG, IL – A recent survey of Illinois manufacturers by the Technology & Manufacturing Association (TMA) found an overwhelming majority of their members want Governor Pritzker to pay down the $4.5 billion unemployment trust fund deficit so businesses and taxpayers aren’t hit with a tax increase.

Following Governor Pritzker’s budget address where he failed to address this deficit, TMA asked members if they believe the governor should allocate the remaining $3.3 billion from the federal “American Rescue Plan” to pay down Illinois’ $4.5 billion unemployment fund shortfall. 89% said yes, with only 4% saying no. If left unpaid, businesses and taxpayers would be on the hook for over $100 million in interest.

“The results of this survey affirm that Illinois manufacturers are concerned with our state’s unemployment deficit,” said Dennis LaComb, Executive Vice President of TMA. “If the governor continues to neglect the unemployment debt, it will cause substantial damage to our state’s already fragile business climate. Absent a solution, workers will be left with reduced benefits and our manufacturing community in Illinois will continue to be at a disadvantage with competing states.”

States and municipalities across the country have already used federal Covid relief funds to cover debt obligations. The City of Chicago earmarked $465 million in Covid relief to pay off its own short-term debt obligations.

TMA surveys their members regularly on topics related to manufacturing. Results from this and previous TMA surveys can be found at TMANews.com.

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