Galesburg Reporter

Approximately $2 billion in Illinoisan unemployment benefits got lost to scammers involving identify fraud after an audit on the Illinois Department of Employment Security (IDES) showed the breach.

“Illinois businesses did not create the lockdowns or give out billions of dollars of unemployment benefits to fraudsters that helped create our state’s nearly $5 billion Unemployment Insurance Trust Fund debt,” Sen. Win Stoller wrote on Facebook. “Now, Democratic lawmakers expect businesses to fix a problem of their own creation, which they could’ve easily fixed with the billions of dollars that the federal government provided them.”

Capitol News Illinois reported IDES’s use of the Pandemic Umeployment Assistance program allowed fraudsters to make fake claims with false identities and switch peoples’ debit cards. Then, the money gets direct deposit into an account by the scammer.

Stoller was one of the Senate Republicans’ chief UI Trust Fund negotiators, alongside Sen. Sue Rezin.

NPR Illinois reported Gov. Pritzker said during a press event the plan is to reduce the Unemployment Insurance Trust Fund bill from $1.8 billion to $450 million. It’ll also save the state approximately $10 million in interest rates.

The state of Illinois received $8.1 billion from the federal American Rescue Plan Act (ARPA) of 2021, which was designed to be used for COVID-19 relief and help with economic recovery. The federal government approved ARPA funds to be used on items like the UI Trust Fund, which prompted 31 states to use their APRA dollars to eliminate their deficits and replenish their Trust Fund balance. 

IDES noted that some penalties for committing fraud are jail, prison time and repayment of stolen benefits with additional fines.

If the remaining UI Trust Fund debt isn’t repaid by Nov. 10, Illinois employers will lose Federal Unemployment Tax Act (FUTA) credit in 2023. The FUTA tax credit loss will be 0.3 percent of the first $7k of wages per employee or a maximum of $21 per employee. Consequently, for each employee earning $12,960 in 2023 a minimum rate taxed employer, the UI tax per employee will increase from $93.96 to $173.28 and for each employee earning $12, 960 in 2023 a maximum rate taxed employer, the UI per employee will increase from $988.20 to $1,326.72.

The General Assembly is not expected to return to Springfield until the fall Veto Session on Nov. 15.

“This contribution is direct evidence of labor market strength in Illinois,” Pritzker said in a release of IDES unemployment debt payment. “With unemployment claims levels continuing to reach historic lows, the State's Unemployment Trust Fund is able to contribute to the loan repayment and save Illinois taxpayers in interest costs.”

Stoller was first elected to the Illinois Senate in 2021. A Republican, their legislative experience includes serving on the Environment and Conservation Committee and Senate Higher Education Committee. Stoller is a state senator who resides in Germantown Hills, according to the Illinois Senate.