SPRINGFIELD, IL (STL.News) Governor JB Pritzker, Senate President Don Harmon, House Speaker Emanuel “Chris” Welch and Comptroller Susana A. Mendoza announced today that they have agreed on a plan to pay off $2 billion in emergency borrowing thanks, in part, to the state’s strong economic rebound.
The State borrowed $3.2 billion dollars from the federal Municipal Liquidity Facility, of which $2 billion remains outstanding, for cash management and to pay for essential state operations at the height of the COVID-19 pandemic. Thanks to a number of factors, including the state’s investments in key economic sectors like small businesses and childcare providers, Illinois’ revenues have come in stronger than expected. This overperformance, in tandem with effective cash management by the Illinois Office of Comptroller, will be instrumental in paying down the outstanding federal debt.
“Repaying the federal government is an important step in our efforts to ensure the state remains on sound fiscal footing,” said Governor JB Pritzker. “The General Assembly has been a critical partner in utilizing the federal dollars to help the most vulnerable get through the pandemic. I also credit the Comptroller in strategically managing cash flow in these trying times.”
“The federal loan was a lifeline to keep our state and our economy afloat.