Illinois’ nightmarish budget situation could get even scarier in the not-too-distant future… Amid the huge backlog of bills and unpaid pension obligations, the state also has borrowed more than $2.2 billion from the federal government to pay unemployment benefits to laid-off workers.
And now, the bill for that borrowing — an estimated $250 million in interest — is about to come due.
In the next few months, Illinois and other states will have to figure out how to repay the money to the feds, while also attempting to craft a plan to replenish their depleted unemployment insurance trust funds.
…”It really is the ticking time bomb,” says Mark Denzler, government relations chief for the Illinois Manufacturers Association, which represents large business interests in the Capitol.
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