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1
HOUSE RESOLUTION

 
2    WHEREAS, The unemployment insurance system of Illinois is
3a quasi-independent function of state government, overseen by
4the Illinois Department of Employment Security (IDES) from
5moneys paid in by the private sector in the form of employer
6"contributions" (i.e. taxes) paid by most employers on their
7payrolls and payroll employees; and
 
8    WHEREAS, Surplus unemployment insurance tax revenues are
9deposited in the Unemployment Insurance Trust Fund, as a fund
10for future needs and as a reflection of the hard work performed
11by the private sector; and
 
12    WHEREAS, On January 31, 2020, the Unemployment Insurance
13Trust Fund had a positive balance of more than $1,892 million,
14this being a reflection of the hard work performed within and
15the tax payments made by the private sector, together with
16interest payments earned on these savings; and
 
17    WHEREAS, The three-year period from February 2020 until
18February 2023 saw the highest level of expenditures paid out
19in unemployment insurance in the history of our State; and
 
20    WHEREAS, During this period of time, the Unemployment
21Insurance Trust Fund spent down its entire balance and, in

 

 

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1addition, built up a cumulative deficit of almost $5 billion;
2and
 
3    WHEREAS, An unknown percentage of the more than $7 billion
4in State-managed unemployment benefit payments made during
5this period were paid out to recipients under conditions of
6ineligibility for these payments, including fraudulent
7ineligibility; and
 
8    WHEREAS, Not only was the almost $2 billion in
9Unemployment Insurance Trust Fund moneys spent down but the
10accumulated deficit resulting from payments made after the
11spend-down will result in an burden that, in the form of higher
12unemployment insurance tax assessments on employers, will be a
13further burden on the private sector for many years to come;
14and
 
15    WHEREAS, The pain of this burden could be reduced by
16clawing back some of the money improperly paid out to
17ineligible recipients, including money paid out under
18conditions of claimant fraud; therefore, be it
 
19    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE ONE
20HUNDRED THIRD GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
21the unemployment insurance system operated by the Illinois
22Department of Employment Security should undertake an audit,

 

 

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1ideally to be carried out by private-sector examiners under
2the supervision of the Office of the Illinois Auditor General,
3on the subject of unemployment insurance recipient fraud
4during the 36-month period of time beginning on February 1,
52020, and concluding on January 31, 2023; and be it further
 
6    RESOLVED, That the auditors should report to the Governor
7of Illinois and the four legislative leaders of the Illinois
8General Assembly, in a report that should be a public
9document, on the dimensions of the fraudulent unemployment
10insurance claim activity that took place during this period;
11and be it further
 
12    RESOLVED, That this report should contain recommendations
13on how to retrieve some of the money improperly paid out, for
14re-deposit in the Unemployment Insurance Trust Fund and
15dedicated reduction in future unemployment insurance taxes to
16be paid by the private sector; and be it further
 
17    RESOLVED, That this report should be submitted to the
18Governor and the leaders of the Illinois General Assembly not
19later than December 31, 2023; and be it further
 
20    RESOLVED, That copies of this resolution be delivered to
21Governor J.B. Pritzker, Auditor General Frank J. Mautino, and
22Interim Director of the Illinois Department of Employment

 

 

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1Security Ray Marchiori.