SR0446 97TH GENERAL ASSEMBLY

SR0446 LRB097 14751 AEK 59771 r

SENATE RESOLUTION

WHEREAS, The Illinois Unemployment Insurance Trust Fund went into debt during the recent economic recession and will not reach solvency for years to come; and

WHEREAS, The State of Illinois borrowed from the federal government to continue to meet its benefit obligations during the recession; and

WHEREAS, The federal interest waiver on these loans expired in January of 2011 and the State of Illinois has been accruing interest on these federal loans; and

WHEREAS, Representatives of the Illinois business and labor communities met over the last 3 months in an effort to reach a joint agreement on these debt and deficit issues; and

WHEREAS, This working group sought to address the immediate and long term solvency issues of the Illinois Unemployment Insurance Trust Fund; and

WHEREAS, Representatives of business and labor reached an agreement to address the immediate solvency issues of the trust fund and outstanding debt to the federal government, the product of which has been committed as House Amendment 4 and House Amendment 5 to Senate Bill 72 of the 97th General Assembly; and

WHEREAS, The Trust Fund debt is not the result of overspending but rather a direct result of an economic downturn that forced employers to reduce their workforce, and as a consequence increased the numbers drawing unemployment benefits in Illinois; and

WHEREAS, A sustainable Unemployment Insurance Trust Fund is necessary to provide an adequate social safety net to the citizens of Illinois and a healthy trust fund is necessary to ameliorate; and

WHEREAS, Unemployment rates in Illinois remain unyieldingly high, and it is in the interest of the people of the State of Illinois for their General Assembly to monitor, study, and correct any shortcomings in the structure and operation of the Illinois Unemployment Insurance Trust Fund; and

WHEREAS, House Amendment 4 and House Amendment 5 to Senate Bill 72 of the 97th General Assembly include specific points in time, specifically in 2016 and again in 2018, at which business and labor representatives will have again worked to realize long term sustainable goals for the State's Unemployment Insurance Trust Fund and the related benefit system; and

WHEREAS, Both business and labor representatives recognize and agree that long-term reforms would benefit the unemployment insurance system in Illinois; therefore, be it

RESOLVED, BY THE SENATE OF THE NINETY-SEVENTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that the Illinois Unemployment Insurance Reform Committee is hereby created to study the system of unemployment insurance benefits, trust fund stability, and reforms that interested parties believe are warranted; and be it further

RESOLVED, That within 90 days after the adoption of this resolution the President of the Illinois Senate and the Speaker of the Illinois House shall each appoint 2 representatives of organized labor, and the Minority Leader of the Senate and the Minority Leader of the House shall each appoint 2 representatives of the state's employers; and be it further

RESOLVED, That within 90 days after the adoption of this resolution the President of the Illinois Senate, the Minority Leader of the Senate, the Speaker of the Illinois House, and the Minority Leader of the Illinois House shall each appoint one member of their respective caucuses to the Unemployment Insurance Reform Committee; and be it further

RESOLVED, That the Illinois Department of Employment Security shall provide all necessary and requested technical and advisory assistance to the Reform Committee; and be it further

RESOLVED, That the Illinois Unemployment Insurance Reform Committee shall recommend the structure and reforms necessary to stabilize and ensure an adequate and sound Unemployment Insurance Trust Fund and benefits system for Illinois; and be it further

RESOLVED, That the Illinois Unemployment Insurance Reform Committee shall submit a written report of their activities and recommendations, by majority vote of the members appointed, to the General Assembly by January 1, 2015.