By: Mark Glennon*
How many fibs can Gov. JB Pritzker pack in a ten-minute interview?
Count ’em:
Jerry Nowicki of Capital News Illinois challenged Pritzker on why the $4.2 billion deficit in Illinois’ unemployment trust fund has been ignored, and asked why it wasn’t reduced using funds from federal government under ARPA, the American Rescue Plan Act.
This is important because it’s a huge part of why Illinois’ budget isn’t remotely close to being honestly balanced, despite Pritzker’s contrary claims. The state entirely ignored the unemployment fund debt in its budget, which has been running up since the start of the pandemic.
Use of ARPA funds was not allowed, Pritzker answered. “You can’t actually use ARPA funds according to the rules of ARPA,” he said.
That’s patently false.
As Nowicki pointed out in his article after the interview, federal rules published in May expressly allow use of ARPA funds for that purpose. As far back as that month, at least 29 states had already done so, the Associated Press reported then. Businesses could thereby “be spared billions of dollars of higher taxes in coming years,” wrote the AP about those other states, “potentially freeing up money to spend on employees or invest in their operations – as a result of federal coronavirus aid flowing to the states.”
Could Pritzker merely have been unaware of what the rule actually is?
Hardly. Plenty of headlines covered the authorization for use of the funds for unemployment trusts aside from the AP. We, too, wrote about it in June. During the budget negotiations in May, a number of legislators tried to insist that the fund be addressed with ARPA money.
And in July, 23 Illinois business groups sent an open letter to Pritzker expressly asking that ARPA money be used for that purpose, citing the federal rule that authorized it.
Pritzker also tried to blow smoke over the matter by implying that other states have the same problem, saying, “We are not the only state that is facing this. All across the nation there are states that owe billions of dollars in deficits….”
It’s not all across the nation. Nowicki properly pointed out it’s only 17 or 18 states with deficits.
Also note that the scope of the problem is not just $4.2 billion, which was the number discussed in the interview. That’s just the amount that’s owed to the federal government on a loan the trust fund took out. At least another billion dollars is needed to return the fund to where it was when the pandemic began.
While giving his answer, Pritzker also claimed that “The biggest thing preventing people from getting back to work is child care and sometimes elderly care.”
That’s highly debatable, at best. There are many reasons why people aren’t returning to work, and child care may well be a reason why some have always chosen not to work. But child care is no less available today, with the state’s unemployment rate at 7.2%, than it was before the pandemic when the rate was under 4%.
Nowicki then asked Pritzker about the pension crisis, which Pritzker brushed off by saying twice that “we have been paying down the pension obligation.”
That’s utter nonsense. The unfunded pension liability has grown and grown every year and has peaked under Pritzker because annual pension contributions are not enough even to allow the pensions to tread water.
Pritzker tried to obfuscate the issue by saying that the funding goal under the current payment schedule is 90% instead of 100% as actuaries want, and said we are paying down pensions “in accordance with the statute.” That’s again just blowing smoke. The problem would be still worse if the target were 100% and the plain fact is that we are not “paying down” the pension problem by any measure, statutory or otherwise.
Pritzker gave many interviews over the past week after announcing he will run for reelection. I did not read a single one, other than Nowicki’s, that was worth reading. The others asked the bland questions that got predictable answers, with no challenging follow-up.
Props to Nowicki for coming to his interview prepared on the unemployment trust fund issue and challenging Pritzker on it. Pritzker probably assumed that he could get away with saying whatever he wants.
He usually does.
*Mark Glennon is founder of Wirepoints.
A set of state lawmakers want to extend CPS’ current school closing moratorium to February 1, 2027 – the same year CPS is set to transition to a fully-elected school board. That means schools like Manley High School, with capacity for more than 1,000 students but enrollment of just 78, can’t be closed for anther three years. The school spends $45,000 per student, but just 2.4% of students read at grade level.
Hopefully, all media will get the message, in Illinois, too.
Ted joined Tom Miller of WJPF to talk about Illinois’ highest-in-the-nation property taxes, why lawmakers don’t want to touch the tax’s cost drivers, just how much Illinoisans’ tax burden has grown over the decades, why Gov. Pritzker failed to meet his promise to reform property taxes, and more.
JB, without being unkind, you are simply not that bright. And, sadly, our sycophantic press is unwilling to hold to account anything this goof utters. Partially, that could be indicative of both THEIR incompetence and their own lack of integrity and honesty.
The real problem in this country — and especially in Illinois– is not the lying politicians, but is the collapse of an honest and competent press to call them out. Many of these topics that JB lies about are so complicated that the average citizen can not understand them–eg., ARPA rules, pension deficits, etc. Skilled and experienced– and honest –reporters would cut right through the BS. But unfortunately those reporters don’t exist any more. The sycophants who are in the press these days are worried about losing access to the insiders so they won’t write about the bad stuff– and… Read more »
Illinoisians have no concept of constitutional rights either. 21 plus years of unconditional government via no balanced budget, FOID infringement, big tech censorship, and fraudulent elections.
With lies like the ones Pritzker threw out he is certain ti be re-elected as long as he runs in Illinois and, if he keeps continuing as he is, Illinois has its new Madigan.
So- is IL the only state left that seems to be under emergency orders? In case you are confused this is for covid not because of shootings.
file:///var/mobile/Library/SMS/Attachments/24/04/A6F69638-AC17-47B0-B01B-A10B165A6730/Coronavirus-Disaster-Proc-07-23-2021.pdf
There are no toilets in his place so the garbage has to get out somehow.
The fed will never see their 4.2 billion “loan” repaid, and they probably never expected it to be repaid. But they had to call it a “loan” for some legal reason.
Let’s not forget, this is the same guy who is on FBI tapes asking Blago for an appointment to “some position” in government. Anything. They were musing about it with no regard for effectiveness, skill or knowledge whatsoever. The man has no regard for merit or integrity as concepts that apply to him. Let’s not also forget that this is the same guy who had his toilets removed so he could cheat the taxpayers out of hundreds of thousands of dollars — and got away with it. And mind you, he has billions of dollars. He’ll perform what amounts to… Read more »
These types of politicians are tolerated by the identity voters in Illinois because of the ‘free stuff’ and by the progressive liberals because “abortions for 12 year olds, yeah!!!!”
I wish I could upvote your post more than one time!
I find it most interesting that local press is completely silent that neighboring Wisconson & Indiana are not only using ARPA funds to restock unemployment funds but offer giant tax breaks and replenish rainy day funds. while JB/ Illinois is concentration on the “free stuff” politics. a complete embarrassment.
The majority of IL voters are receiving exactly what they voted for.
The size of the federal bailout nearly equates to the revenue the state “lost” yearly when the income tax rate decreased from 5% to 3.75% as planned in 2015. You remember, that temporary tax rate hike all the Democrats voted to make temporary?
If the feds bailed out Rauner in a similar fashion back then, there would have been no budget impasse. What would the state Democrats have said? Would they have praised Rauner for his brilliant leadership?
Good point. With $8 billion in direct handouts from the feds and $138 billion to the state as a whole, Rauner would have looked like a genius. Blago and Quinn, too!
My making the tax hike temporary, State Democrats specifically voted to reduce state revenues by $5 billion in 2015. And since they failed to reduce state spending by the time the $5B revenue decrease rolled around, they handed Rauner a pandemic-sized budget gap without federal funds to fill it. Seriously, someone needs to make comparisons of Rauner’s budget impasse to what has transpired. What would JB’s budgets look like w/ a 3.75% income tax rate or 5% with no federal bailout. Because JB has really done nothing to fix state finances. He merely benefited from the 5% rate he inherited… Read more »
I totally agree with you.
But politics here is not about intellectual honesty. They don’t give a s***t one way or another.
They shrug their shoulders and chuckle about reality and what the public believes.
I know because I’ve had the displeasure of being in the room with a few of them.
True.
Sadly, moral bankruptcy continues to be rewarded in this state.
Political entropy and social entropy are a chicken-egg situation here.
Good idea.
Just heard that JB is going to Lollapalooza,looks like the food vendors there are going to have banner year!
Hard to believe this guy actually thinks we believe his lies. Thank you Wirepoints for staying on top of things. The MSM sure isn’t!
Why spend ARPA funds when you can just raise the employers’ funding rates? Bad businesses! (sarc)
All I know is people of Illinois better remember when it comes time to vote in 2022 what lies and Pritzker’s total malfeasance has occurred during his 1st 4 years as a political hack. If Pritzker we’re to get re-elected god help us all.
Thank you, wirepoints.com for info that rarely is told anywhere else.Mainstream media is so biased at times I can’t believe it. Sooner or later truth will always be told.
The best job in the country is to be a (D) politician…
They can say & do pretty much what ever they want, with little or no consequences…
Oh & you get rich too…
Until the State of Chaos known as Illinois repays every dollar with interest of the pension payments they were and are required to pay and consciously decided to not, going back to the 1990’s, they will always and forever be scumbag deadbeats.
Logic tree: 1.This organism has been elected Governor. 2.It is documented that this organism makes factually inaccurate statements about matters which are harmful to Illinois taxpayers, prior to election (false statements on property tax assessment appeal resulting in the transfer of property tax liability from this organism to other humans within its taxing district). 3.Therefore we may assume that documentation of this organism’s false statements will have little impact on future election. Logical Solutions: 1. Find evidence of illegal activity by this organism and litigate it. 2. Rely upon the organism to determine that litigation represents a risk which outweighs… Read more »
Organism…love the comment.
“Paying down the pension obligation” like a person pays down their credit card obligation with the minimum due.
It’s a shame a simple FICO score isn’t maintained for every state. The bond market is rigged.
Thank you, Mark, for holding his feet to the fire on this one.
So why the gaslighting from Pritzker? Democrats want to spend the $4.2B and just tax employers more so it seems.
NoHope – where does this go? You can plan on taxing employers more, but actually collecting that money (particularly as employers leave or don’t hire) is another matter. If given a truth serum, Pritzker would likely say that it is essential that Democrats continue to control the federal government, as a continuing bailout from the feds is our only way out.
Pritzker and his family profited significantly from the pandemic and the lockdowns he imposed all over the state, so I’m not sure he gives a hoot about other businesses.
Continuing bailout from the Feds actually only stalls the inevitable economic failure of Illinois. The Illinois debt hole is so deep that Billions of dollars from Red State taxpayers only dusts the bottom of the abyss. It does let politicians kick the can down the road for a few more years and temporarily bask in the praise of their sycophant propaganda media. When JB runs for President in 2024, the Democrat Propaganda Media will praise him as an economic genius who stabilized the Illinois economy – all paid for by red state taxpayers.