Full Text of HR0080 103rd General Assembly
HR0080 103RD GENERAL ASSEMBLY |
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| 1 | | HOUSE RESOLUTION
| 2 | | WHEREAS, The unemployment insurance system of Illinois is | 3 | | a quasi-independent function of state government, overseen by | 4 | | the Illinois Department of Employment Security (IDES) from | 5 | | moneys paid in by the private sector in the form of employer | 6 | | "contributions" (i.e. taxes) paid by most employers on their | 7 | | payrolls and payroll employees; and
| 8 | | WHEREAS, Surplus unemployment insurance tax revenues are | 9 | | deposited in the Unemployment Insurance Trust Fund, as a fund | 10 | | for future needs and as a reflection of the hard work performed | 11 | | by the private sector; and
| 12 | | WHEREAS, On January 31, 2020, the Unemployment Insurance | 13 | | Trust Fund had a positive balance of more than $1,892 million, | 14 | | this being a reflection of the hard work performed within and | 15 | | the tax payments made by the private sector, together with | 16 | | interest payments earned on these savings; and | 17 | | WHEREAS, The three-year period from February 2020 until | 18 | | February 2023 saw the highest level of expenditures paid out | 19 | | in unemployment insurance in the history of our State; and | 20 | | WHEREAS, During this period of time, the Unemployment | 21 | | Insurance Trust Fund spent down its entire balance and, in |
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| 1 | | addition, built up a cumulative deficit of almost $5 billion; | 2 | | and
| 3 | | WHEREAS, An unknown percentage of the more than $7 billion | 4 | | in State-managed unemployment benefit payments made during | 5 | | this period were paid out to recipients under conditions of | 6 | | ineligibility for these payments, including fraudulent | 7 | | ineligibility; and
| 8 | | WHEREAS, Not only was the almost $2 billion in | 9 | | Unemployment Insurance Trust Fund moneys spent down but the | 10 | | accumulated deficit resulting from payments made after the | 11 | | spend-down will result in an burden that, in the form of higher | 12 | | unemployment insurance tax assessments on employers, will be a | 13 | | further burden on the private sector for many years to come; | 14 | | and
| 15 | | WHEREAS, The pain of this burden could be reduced by | 16 | | clawing back some of the money improperly paid out to | 17 | | ineligible recipients, including money paid out under | 18 | | conditions of claimant fraud; therefore, be it
| 19 | | RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE | 20 | | HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that | 21 | | the unemployment insurance system operated by the Illinois | 22 | | Department of Employment Security should undertake an audit, |
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| 1 | | ideally to be carried out by private-sector examiners under | 2 | | the supervision of the Office of the Illinois Auditor General, | 3 | | on the subject of unemployment insurance recipient fraud | 4 | | during the 36-month period of time beginning on February 1, | 5 | | 2020, and concluding on January 31, 2023; and be it further | 6 | | RESOLVED, That the auditors should report to the Governor | 7 | | of Illinois and the four legislative leaders of the Illinois | 8 | | General Assembly, in a report that should be a public | 9 | | document, on the dimensions of the fraudulent unemployment | 10 | | insurance claim activity that took place during this period; | 11 | | and be it further | 12 | | RESOLVED, That this report should contain recommendations | 13 | | on how to retrieve some of the money improperly paid out, for | 14 | | re-deposit in the Unemployment Insurance Trust Fund and | 15 | | dedicated reduction in future unemployment insurance taxes to | 16 | | be paid by the private sector; and be it further | 17 | | RESOLVED, That this report should be submitted to the | 18 | | Governor and the leaders of the Illinois General Assembly not | 19 | | later than December 31, 2023; and be it further
| 20 | | RESOLVED, That copies of this resolution be delivered to | 21 | | Governor J.B. Pritzker, Auditor General Frank J. Mautino, and | 22 | | Interim Director of the Illinois Department of Employment |
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| 1 | | Security Ray Marchiori.
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