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Southern Illinois News

Tuesday, November 5, 2024

Jacobs: Illinois businesses put $5 billion strain on unemployment fund 'through no fault of their own'

Unemployment illinois

The Governor of Illinois continues to draw criticism due to the high unemployment in the state and the strain it is putting on social safety nets. | Canva

The Governor of Illinois continues to draw criticism due to the high unemployment in the state and the strain it is putting on social safety nets. | Canva

Economic shutdowns and hardship caused by the coronavirus pandemic have put a $5 billion strain on the social safety net system. 

In Illinois, the funds earmarked for unemployment are quickly being depleted, causing the severe deficit. This fund, the Unemployment Insurance Trust Fund, is issuing disbursements to those affected by the pandemic at a rapid pace. 

The cause is not a mystery. Unemployment rates are hovering around record highs and state unemployment systems, not just Illinois, are being put under more strain than ever before. If it continues, taxes are likely to increase and cuts to unemployment benefits are sure to occur, The Pantagraph reported. 

While the cause is not controversial, blame for it certainly is. 

Rep. Paul Jacobs insists that J.B. Pritzker acted outside of his authority when he shut down businesses across the state, causing many of those businesses to go out of business or lay off workers. When asked about Pritzker's role in the situation, Jacobs didn't pull punches. 

He said, "Businesses have struggled in the last year through no fault of their own. Governor Pritzker locked down our economy forcing businesses to close their doors, leaving millions of Illinois residents out of work.

"The lockdown of our economy was not something anyone saw coming and the Illinois Unemployment Insurance Trust Fund is being drained as a result," he continued. "State government needs to address these concerns. We have some federal funds coming that could be used to shore up the fund. What we don’t need to do is hit businesses with massive tax increases while they are in the process of getting their businesses back up and running."

Also chiming in was Secretary Treasurer at the Illinois AFL-CIO Federation of Labor Unions Pat Devaney. He told The Pantagraph, “I think everybody agrees, whether you're on the employer side or the employee side, that given the current deficit, it's going to be near impossible to cut your way or to raise employer taxes to resolve the existing level of deficit.”

As the situation in Illinois continues to grow worse, it appears that the only relief for the situation is a steadily improving situation when it comes to the coronavirus pandemic. As cases fall, government officials cling to the hope that soon, expanded unemployment benefits will no longer be necessary. 

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