Fiscal Note, House Floor Amendment No. 1 (Dept. of Employment Security)
Pursuant to the Fiscal Note Act, 25 ILCS 50/1, the Illinois Department of Employment Security (Department) has reviewed House Amendment 1 to House Bill 2565 and has determined that the legislation could have a fiscal impact on the Unemployment Insurance Trust Fund (UTF) and administrative costs for the Department. Assuming that the number of strikes in Illinois remains at the historical average for the past 17 years, and that the average strike period remains at approximately four benefit weeks, and using estimated 2026 wage data, the Department estimates the total cost to the UTF under Amendment 1 of HB 2565 would be approximately $700,000 to $1,000,000 per year. In addition, it is reasonable to expect that employers who make payments in lieu of contributions (governmental entities and not-for-profit employers who repay the UTF dollar-for-dollar for all unemployment benefits paid to their workers) would repay the UTF approximately $700,000 to $1,000,000 per year, under the same assumptions. The Department also estimates that, under the same assumptions as above, administrative costs for implementing and administering Amendment 1 of HB 2565 would be approximately $67,000, including the cost of updating systems, processing new claims, administering the additional weekly benefits and appeals, and an increase in postage. The Department has also asked the United States Department of Labor for a standard, informal conformity review of the language of this bill with federal regulations. The Department has not yet received a response.