HR0080 103RD GENERAL ASSEMBLY

HR0080 LRB103 30066 MST 56489 r

HOUSE RESOLUTION

WHEREAS, The unemployment insurance system of Illinois is a quasi-independent function of state government, overseen by the Illinois Department of Employment Security (IDES) from moneys paid in by the private sector in the form of employer "contributions" (i.e. taxes) paid by most employers on their payrolls and payroll employees; and

WHEREAS, Surplus unemployment insurance tax revenues are deposited in the Unemployment Insurance Trust Fund, as a fund for future needs and as a reflection of the hard work performed by the private sector; and

WHEREAS, On January 31, 2020, the Unemployment Insurance Trust Fund had a positive balance of more than $1,892 million, this being a reflection of the hard work performed within and the tax payments made by the private sector, together with interest payments earned on these savings; and

WHEREAS, The three-year period from February 2020 until February 2023 saw the highest level of expenditures paid out in unemployment insurance in the history of our State; and

WHEREAS, During this period of time, the Unemployment Insurance Trust Fund spent down its entire balance and, in addition, built up a cumulative deficit of almost $5 billion; and

WHEREAS, An unknown percentage of the more than $7 billion in State-managed unemployment benefit payments made during this period were paid out to recipients under conditions of ineligibility for these payments, including fraudulent ineligibility; and

WHEREAS, Not only was the almost $2 billion in Unemployment Insurance Trust Fund moneys spent down but the accumulated deficit resulting from payments made after the spend-down will result in an burden that, in the form of higher unemployment insurance tax assessments on employers, will be a further burden on the private sector for many years to come; and

WHEREAS, The pain of this burden could be reduced by clawing back some of the money improperly paid out to ineligible recipients, including money paid out under conditions of claimant fraud; therefore, be it

RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the unemployment insurance system operated by the Illinois Department of Employment Security should undertake an audit, ideally to be carried out by private-sector examiners under the supervision of the Office of the Illinois Auditor General, on the subject of unemployment insurance recipient fraud during the 36-month period of time beginning on February 1, 2020, and concluding on January 31, 2023; and be it further

RESOLVED, That the auditors should report to the Governor of Illinois and the four legislative leaders of the Illinois General Assembly, in a report that should be a public document, on the dimensions of the fraudulent unemployment insurance claim activity that took place during this period; and be it further

RESOLVED, That this report should contain recommendations on how to retrieve some of the money improperly paid out, for re-deposit in the Unemployment Insurance Trust Fund and dedicated reduction in future unemployment insurance taxes to be paid by the private sector; and be it further

RESOLVED, That this report should be submitted to the Governor and the leaders of the Illinois General Assembly not later than December 31, 2023; and be it further

RESOLVED, That copies of this resolution be delivered to Governor J.B. Pritzker, Auditor General Frank J. Mautino, and Interim Director of the Illinois Department of Employment Security Ray Marchiori.