Paul Vallas, policy adviser for Illinois Policy Institute and former CEO for the Chicago Public Schools, said state audits are delayed in Illinois to avoid scrutiny of $5.2 billion in unemployment fraud and $1.6 billion in immigrant health costs exceeding projections.
“The CTU isn’t the only one trying to hide audits Gov JB Pritzker’s office’s last published state audit was dated June 2023 The next audit was expected in 2025, but it hasn’t been published,” said Vallas. “Pritzker says he reviews all audits while trying to downplay the continued negative findings in audits of individual state agencies by dismissing them as repetitive. Pritzker has shrugged off the Illinois Auditor General’s finding that $5.2 billion in fraudulent unemployment insurance payouts during COVID as meaningless, saying other states had experienced fraud. Pritzker also had no explanation for the IAG’s special audit in Feb 2025, that revealed health benefits for undocumented immigrants cost over $1.6 billion, three times the initial projections.”
Vallas posted on X, highlighting issues with fraud in unemployment payouts and overspending on health benefits for undocumented immigrants under Governor JB Pritzker’s administration. The post included an image comparing governors and mentioned Pritzker’s deflection by referencing similar issues in California.
According to reports, Illinois recorded $5.24 billion in overpayments for unemployment benefits from fiscal years 2020 to 2022, with fraud being a significant factor. The state has managed to recover only about 10 percent of these funds, underscoring ongoing challenges in managing public resources amid economic pressures.
The Office of the Auditor General reports that Illinois spent over $1.6 billion on health benefits for undocumented immigrants from fiscal years 2021 to 2024, significantly exceeding initial estimates. Costs for the Health Benefits for Immigrant Seniors program were reportedly 84 percent higher than projected, contributing to fiscal strains on the state budget.
The Governor’s Office of Management and Budget projects a $3 billion budget shortfall for Illinois in fiscal year 2026, which is expected to grow to over $5 billion by 2029. This deficit arises amid federal policy changes and spending patterns that outpace revenue growth, potentially leading to cumulative deficits exceeding $22 billion over five years.
Vallas began his career as a policy adviser in the Illinois General Assembly and served as Chicago’s budget director before leading Chicago Public Schools as CEO from 1995 to 2001. He also managed school districts in Philadelphia, New Orleans, and Bridgeport and ran for Chicago mayor in 2023.
The Illinois Policy Institute aims to foster fiscal responsibility and government reform to build a more prosperous future for residents of Illinois. It promotes free-market principles and limited government while offering data-driven analysis on issues such as state budgets, taxes, education, and pensions. The institute operates as an independent nonprofit think tank headquartered in Chicago.
