SPRINGFIELD, Ill. (AP) — Illinois business and labor groups have agreed on a plan to erase a $1.8 billion debt, generated by the wrenching COVID-19 pandemic, in the account that covers unemployment benefits, state officials said Tuesday.
The deal leans on surplus funds in the state budget, Gov. J.B. Pritzker said at a Capitol news conference. It will pay off the $1.36 billion owed to the federal government, which loaned money to Illinois and numerous other states when the coronavirus shut down businesses nationwide.
Another $450 million will be packaged as an interest-free loan that unemployment taxes on businesses will repay over the next 10 years. As businesses pay that back, money will be deposited into the state’s rainy day fund to help ensure stability during an economic downturn, a particular interest of Pritzker’s.
“Resolution of this matter alleviates a burden looming over the heads of workers and businesses alike,”…
