SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Today’s number: $86.3 million

Monday, Apr 15, 2013

* From the SJ-R

As taxpayers rush to send in their 1040s Monday, folks sending a check to the Illinois Department of Revenue may be wondering what happens to all that cash.

The answer for at least $86.3 million last year is that it gets “flushed away,” according to state Comptroller Judy Baar Topinka.

The line of unpaid vendors is much longer and the bill is much higher than that comparatively small amount — the total for outstanding bills stood at nearly $5.9 billion as of Friday afternoon — but those tens of millions of dollars last year went to cover interest owed on those late payments.

If the state can’t pay its bills on time — after 90 days — private vendors become eligible for interest on the overdue amount. That accrues month after month until the bill gets paid.

Many of those overdue bills are in the Medicaid program, which means the state isn’t getting timely federal reimbursement, which just compounds the problems.

- Posted by Rich Miller        


24 Comments
  1. - wordslinger - Monday, Apr 15, 13 @ 10:32 am:

    –the total for outstanding bills stood at nearly $5.9 billion as of Friday afternoon–

    Last year year at this time it was over $9 billion, so progress is being made.

    But this still makes no sense.

    –“When a family is drowning in debt and interest payments, the worst thing it can do is apply for new credit cards,” she said. “The additional spending power may bring short-term relief and a false sense of security, but it will ultimately lead to financial collapse.”–

    But when a family can refinance 18% debt for 5% debt, they’d be crazy not, too.

    It’s so simple, I’m sure everyone knows that. But I suspect there are a number of regular heavy-hitter vendors — those without cash-flow issues — who are more than happy to get paid months’ late on a monthly basis and collect the juice.

    Good for those vendors, bad for taxpayers.


  2. - Anon - Monday, Apr 15, 13 @ 10:46 am:

    5.9B? Rich, wasn’t it sitting at almost 9B two years ago? That’s quite an improvement.


  3. - Bill White - Monday, Apr 15, 13 @ 11:10 am:

    We can add “lack of timely federal reimbursement” to the list of reasons why refinancing IL debt with a bill consolidation loan is simple common sense.


  4. - unbiased observer - Monday, Apr 15, 13 @ 11:18 am:

    actually late reimbursement, even with interest is bad for many if not most hospital systems in Illinois. especially in the rural areas, these hospitals run on razor thin margins. if this problem is not addressed there will be many more rural hospitals going out business due to late Medicaid payments. rural hospitals (and urban ones) are major employers in their communities.

    it is ludicrous to downplay this issue, to say it isn’t that important because the payments are coming late with interest. it is a huge deal.

    also don’t forget, the school systems in tax poor school districts are simply not getting paid all of their “promised” state aid. this is projected to get worse. this will cause schools to lay off staff (watch headlines over next few months) and decrease the educational experience of our students.

    this is a major issue and unless something is done it will have terrible effects on our state.


  5. - Bondholder - Monday, Apr 15, 13 @ 11:18 am:

    That $5.9Bn is a fallacy. Something not being included. Was $9Bn at time of most recent Bond sale, less than a month ago. IL uses three different accounting methods among is various offices, and each one reports a different level of unpaid bills. Fascinating, really.


  6. - Captain Illini - Monday, Apr 15, 13 @ 11:24 am:

    Slinger of the Word is right again. For those able to endure the wait, it’s the best investment return anybody is going to get. In fact, it’s geared toward large corporations and other companies that are balanced with non-governmental clients so cash flow can happen. The dirty secret this administration doesn’t want to talk about is the structural problems of spending…since getting a loan to cover the bills, thus saving interest would expose the next unpaid bills run due to the spending issues.


  7. - Raising Kane - Monday, Apr 15, 13 @ 11:27 am:

    “refinancing the debt” as Blago also refered to it, simply takes the pressure off and allows the state to keep on spending. It really is like a home equity loan to pay off credit card debt and then most people charge their cards back up. Illinois has a history of doing that as well. If you borrow and take the pressure off of holding the line on spending you create even more of a long term problem.


  8. - Bill White - Monday, Apr 15, 13 @ 11:34 am:

    @Raising Kane - this piece appears spot on: “Burke versus Buckley”

    === For the Burkeans of 1950s, emphasis on community was at the heart of a properly conceived conservatism. [Russell] Kirk wrote: “True conservatism … rises at the antipodes from individualism. Individualism is social atomism; conservatism is community of spirit.” ===

    and

    === [Russell] Kirk abhorred the libertarian direction in which Buckley and colleagues were taking conservatism. Kirk later denounced libertarianism for revering “self-interest, closely joined to the nexus of cash payment” rather than Burke’s “community of souls.” He complained that libertarians take “the state for the great oppressor” although Burke taught that government “is a contrivance of human wisdom to provide for human wants.” ===

    http://www.theamericanconservative.com/articles/burke-not-buckley/


  9. - Small Town Liberal - Monday, Apr 15, 13 @ 11:34 am:

    - It really is like a home equity loan to pay off credit card debt -

    That would be true if a lot of credit card companies were living hand to mouth like a lot of vendors are. We should get these people paid, forcing them to wait around to keep pressure on the state is asinine.


  10. - Ahoy! - Monday, Apr 15, 13 @ 11:35 am:

    It’s also only half the problem, we only know how much we pay in interest due to late payments, we don’t know how much we owe and how it is compounding the problem. Not sure why Illinois accounting can’t figure this out, just know it’s an issue.


  11. - Raising Kane - Monday, Apr 15, 13 @ 11:47 am:

    STL….Any other ideas of how to keep the pressure on the state? We can not keeep borrowing to pay operating expenses.


  12. - Mouthy - Monday, Apr 15, 13 @ 11:51 am:

    Interest is too high, 6% is fair.
    There may be billions of unpaid bills that have been held from being on the books. You don’t know how much is there because it’s mostly inside baseball kind of stuff. So if you want to gauge whether the state has improved this isn’t the number to do so with.


  13. - Rich Miller - Monday, Apr 15, 13 @ 12:03 pm:

    ===Any other ideas of how to keep the pressure on the state?===

    Yes, the interest and principal payment on all that hard debt. It’ll require a bigger cut of state spending than they’re debating right now.


  14. - wordslinger - Monday, Apr 15, 13 @ 12:05 pm:

    –STL….Any other ideas of how to keep the pressure on the state? We can not keeep borrowing to pay operating expenses.–

    You’re already borrowing from vendors at a higher rate. Some of the Big Boys are happy with the arrangement and the juice. Social service providers, not so much.

    I don’t think paying higher interest rates is a smart way of trying to exert fiscal discipline.


  15. - wordslinger - Monday, Apr 15, 13 @ 12:17 pm:

    ===Any other ideas of how to keep the pressure on the state?===

    –Yes, the interest and principal payment on all that hard debt. It’ll require a bigger cut of state spending than they’re debating right now. –

    Best point, yet. The first time you’re late on a bond payment, the house of cards comes down. That’s why it’s never happened in nearly 200 years.


  16. - Raising Kane - Monday, Apr 15, 13 @ 12:44 pm:

    If you spread that 2B over 30 years, the payment won’t be high enough to keep the pressure up. And wordslinger is right, debt payments are the first checks written every month.


  17. - Rich Miller - Monday, Apr 15, 13 @ 12:46 pm:

    ===If you spread that 2B over 30 years===

    Every proposal I’ve seen is for 10 years or less. Some were quite a bit less.


  18. - Anonymous - Monday, Apr 15, 13 @ 12:50 pm:

    The money they would be borrowing is for spending that has already occurred. It’s dumb not to borrow and pay a much lower interest rate than the state is paying now.


  19. - Demoralized - Monday, Apr 15, 13 @ 12:50 pm:

    Sorry. That was me above.


  20. - wordslinger - Monday, Apr 15, 13 @ 12:56 pm:

    –If you spread that 2B over 30 years,–

    30 years would be crazy. The whiz kids would crunch the numbers to make it come out right, but my guess would be five, ten at the max.


  21. - wordslinger - Monday, Apr 15, 13 @ 1:00 pm:

    Rich pointed out the fiscal discipline bonding enforces, not me.


  22. - Arthur Andersen - Monday, Apr 15, 13 @ 1:48 pm:

    30 year amortization for this type of debt is not only crazy, it might be illegal under Federal law. Five to ten sounds about right.


  23. - zatoichi - Monday, Apr 15, 13 @ 4:50 pm:

    Since previous debt levels were about $8B-$9B does that $5.9B show just what the Comptroller has booked or does it include projections of what the departments have not released yet?


  24. - Just The Way It Is One - Monday, Apr 15, 13 @ 6:16 pm:

    It’s become beyond aggravating to look this ugly eye sore in the face because, especially when some of us just had to cut a check to square up with Uncle Sam after a fun weekend of spare time laboring on all of the bureaucratic tax gobbledygook paperwork, it’s the same old story of just layer upon layer of debt piling up with a lotta good folks and service providers livin’ here in Illinois going UNpaid–with the U.S. Govt. not divvying out the Medicaid funding we are owed so Illinois can better do its’ part on the (apparently) 5.9 Bil. Monster out there (although at least that beast has shrunken some from the recent 9 Bil. Monster roaming Illinois streets…!


Sorry, comments for this post are now closed.


* Stay tuned
* Another collectivist rag weighs in
* SUBSCRIBERS ONLY - This just in...
* Today's quotable
* Question of the day
* Munger has "exciting news," Mendoza posts very long ad
* Emanuel says Rauner has "wasted" his term
* I just can't
* Maybe not
* A look at the elected Chicago school board bill
* Caption contest!
* More like this, please
* AG Madigan announces huge VW settlement
* Rauner blasts Dems
* Scherer opponent drops out
* Rauner poll: Voters oppose CPS "bailout"
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** UPDATED x1 - Madigan won't say if he has the votes *** House not yet in agreement with Senate
* *** UPDATED x1 - Bills filed *** Rauner unveils his stopgap plan
* SDems leak K-12 funding plan
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Samsung Pay adopters stateside yet again offered $20 eCertificate
* Plethora of Galaxy Note 7 information corroborated by Murtazin, including 3,600 mAh battery
* iPhone 7 metal chassis leaks, Google-made Android phone & more – Pocketnow Daily
* Akamai: global average connection speed up 12 percent, bye bye IPv4
* Deal: Turn your smartphone into a 3D gaming console
* ZTE can continue U.S. trade through end of August with latest extension
* New Google Cast SDK Version 3 released

* White Sox shut out by Twins in opener
* White Sox continue to struggle vs. Central rivals
* White Sox shut out by Twins in opener
* Less than 2 days left to cast your All-Star vote
* Hit in 57 games, win $5.6 million
* 2016 Draft: Signing and bonus tracker
* Shields aims to build on previous outing as he faces Twins

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* Opinion: Solve budget crisis now - Herald & Review..
* Dire scenarios for Illinois in second year with.....
* GOP, Democrats say progress made in Illinois bu.....
* Progress made in long leaders' meeting in Sprin.....


* Human Services caseworker pleads guilty to theft charges
* Judge orders Illinois to add PTSD to medical marijuana list
* Illinois' share of multistate VW settlement nearly $29M
* Witness in Urbana murder trial shot while sitting in car
* Strangled Chicago woman's son sues city, Cook County
* Rauner pushes new stopgap budget, rips Democrats' plan
* Dire scenarios for Illinois in second year without budget
* Illinois residents asked to leave fireworks to the pros
* Illinois corrections owes city $1.2 million in utilities
* Officials: Starved Rock visitors should watch crowds

* Carlinville train station upgrade dependent on state budget
* Governor, leaders say progress made on budget deal
* Deadrick Wolfer suspends House race vs. Scherer
* Higher education coalition urges full funding for both 2016, 2017
* Judge orders Illinois to add PTSD to medical marijuana list
* Deadrick Wolfer suspends Illinois House race vs. Scherer
* Former state worker pleads guilty to theft charges
* Rauner pushes new stopgap budget, rips Democrats' plan
* Dire scenarios for Illinois in second year without budget
* Illinois' share of multistate VW settlement nearly $29M

* First Midwest buys Standard Bancshares in $365 million deal
* Trunk Club to shut Goose Island operation, cut 250 jobs
* Little sign of budget progress as Springfield stalls over CPS spending
* Dire scenarios for Illinois in second year without budget
* Head of TSA in Chicago resigns


* 3-year-old boy among 15 wounded in Chicago shootings Tuesday
* 4-year-old girl struck by car in Lawndale
* Man critically wounded in Brainerd shooting
* Man walks into hospital after Lawndale shooting
* 67-year-old man shot in West Garfield Park
* Man wounded in Austin shooting
* Man shot, critically wounded in North Lawndale drive-by
* Fire officials: Woman fatally struck by Red Line train downtown
* It’s a mad, mad, Maddon world as Cubs win in 15 innings
* Georgia Nicols horoscopes for June 29, 2016


* Producers credit the people of Aurora for movie's success
* At least 17 shot, including child, in separate attacks
* Cubs' reliever Travis Wood on playing left field
* Joe Maddon on using three relievers in left field
* Cubs' Javier Baez on his grand slam
* Initiative to legalize recreational use of pot in California qualifies for November ballot
* 36 dead, 147 wounded in suicide attack on Istanbul airport
* All hands on deck in Cubs' 15-inning win
* Woman fatally struck by CTA train in Loop
* White Sox's AL Central woes continue in shutout loss to Twins


* Enough: Illinois' budget standoff must be resolved
* The story behind our front page editorial
* Carlinville train station upgrade dependent on state budget
* Governor, leaders say progress made on budget deal
* Deadrick Wolfer suspends House race vs. Scherer
* Guest Column: Illinois legislators fail to fix broken biometrics law
* Our View: The story behind Wednesday's front page editorial
* Higher education coalition urges full funding for both 2016, 2017
* Judge orders Illinois to add PTSD to medical marijuana list
* Deadrick Wolfer suspends Illinois House race vs. Scherer


* Gun violence topic for Champaign council applicants
* Bollant: Summitt was 'great role model'
* Ex-UI coach Law remembers Summitt
* Groce moving on from Nunn
* UI hoops recruit glance: Trent Frazier
* UPDATED: Teachers picket at Unit 4
* PODCAST: SportsTalk 06-28-16
* Judge will recommend boot camp in drug case
* PODCAST: Luke Boyce, Shatterglass Studios 06-28-16
* Man arrested after burglary report faces variety of charges


* New Las Vegas club has edge over NHL's 2000 expansion teams
* Records: City lawyers weak link in police accountability
* Suicide blasts kill dozens at Istanbul airport
* Smolinski's 3-run pinch-hit HR leads A's past Giants 13-11
* Lincecum battered by Astros in Angels' 7-1 loss

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Illinois to get $17 million for HIV assist......

* Cassidy, Klobuchar, Johnson, Kirk Introduc......
* GOP Senator Mark Kirk Immediately Politici......

* “The Driver’s Side” – News From The Motorist’s Perspective
* Does overtime amount to overkill?
* Wednesdays Are "CAPS Night Out" in Buttercup Park; Volunteers and Participants Sought
* Berman: What Would Gay Christians Have Straight Christians To Do?
* Thorner/O'Neil: Brexit's Fine Line Between Committing and Correcting
* Britain's Prime Minister To Resign After 'Brexit' Vote
* Lucas Museum Abandons Plans To Build In Chicago (UPDATED)
* Progress Illinois On Abbreviated Publishing Schedule
* IL Reproductive Rights Groups Hail High Court Decision
* What's the Difference Between England, Britain and the U.K.?


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller