ILLINOIS (WAND) - Illinois will borrow $2 billion from federal reserve funds as a short-term solution during the pandemic, Gov. JB Pritzker said.
According to the governor, the U.S. Federal Reserve is allowing states to borrow short-term funds in order to weather a financial storm caused by the virus. Pritzker said Illinois has suffered a COVID-related loss of tax revenue of more than $5 billion.
The Reserve had offered $5 billion, and the governor said Illinois claimed less than half of that number.
Pritzker called this line of credit a "short-term Band-Aid" and said piling debt is not a long-term answer. He said long-term fiscal health must be addressed, "but not with short-term borrowing."
He added the level of confidence in Illinois is rising but "remains modest" for potential state and local aid from the federal government.
"Our collective intention is to repay this line of credit as early as possible after either the awarding of stimulus by Congress or sufficient recovery of state revenues," Pritzker said.
He said the state needs to help protect the public by offering needed goods, such as a personal protective equipment (PPE), and provide funding for people who lost money because of COVID-19.
Pritzker added President-elect Joe Biden and the House of Representatives have pledged to provide state and local stimulus funding.