(The Center Square) – The next phase of federal aid from Congress amid the
COVID-19 pandemic could allow state and local governments to use already
released federal funds for tax revenue shortfalls from government shutdowns.
State Rep. Dan Ugaste, R-Geneva, said such flexibility will be important,
but it shouldn’t negate the need for state government to address problems that
have plagued Illinois since before the pandemic, he said.
“The pension system still needs to be addressed, we need to start running
balanced budgets through every single year and we need to make Illinois a state
that people and businesses want to come to,” Ugaste said.
In Springfield, City Budget Director Bill McCarty said city officials don’t
want to increase taxes again. He said the city has worked for years to shore up
costs, streamline services and keep employee headcounts down all while increasing
their surplus. But that won’t help offset the lost revenue from diminished
economic activity amid the pandemic. Flexibility to spend COVID-relief funds
will be critical, he said.
“That combined with utilization with some of our record [city level] reserves
that we’ve built up over time will help greatly reduce the types of cuts that
we’re looking at doing,” McCarty said.
Heading into the weekend Friday the White House said negotiations continue
on a Phase 4 relief plan from Congress.
There’s a difference of opinion of some other elements of a COVID-19 relief.
Some employers in Illinois note the increased unemployment benefits during
the pandemic is making it difficult to bring their former employees back on.
But U.S. Rep. Danny Davis, D-Chicago, opposed letting increased benefits
expire.
“A Republican failure to continue the $600 a week federal unemployment
supplement would represent a racially discriminatory action, period,” Davis
said.
U.S. Rep. Rodney Davis, R-Taylorville, said all aspects of pandemic era
unemployment benefits are being debated, especially as in Illinois, the
Department of Employment Security has been hit with reports of website
failures, security problems, backlogs of getting benefits out, unavailable
phone access, and even debit cards with unemployment benefits for people who
have either died or didn't apply for unemployment benefits.
“But when we’re seeing fraud, we’re seeing mismanagement, incompetence, at
the state level in getting those dollars to who need them the most, that’s a
question that we then have to address as we begin debating the next round of
COVID legislation, for sure,” Davis said.
Another element White House Press Secretary Kayleigh McEnany was looking for
heading into the weekend was ensuring any new dollars for education either go
to schools that are open or for scholarships to private schools.