* 12:48 pm - Comptroller Dan Hynes will announce his decision on whether to sign off on a $500 million short term state loan at 1 o’clock this afternoon. I’ll update this post shortly thereafter.
While we wait, take a look at this Trib story which I missed earlier today…
When Gov. Pat Quinn accused Comptroller Dan Hynes of playing politics on a plan to use short-term borrowing to pay a backlog of state bills, the governor said that when he was state treasurer he “worked together” with a Republican governor and a Democratic comptroller on borrowing plans “on behalf of the common good.”
What Quinn didn’t mention is that as state treasurer in 1992, he single-handedly blocked an effort by then-Gov. Jim Edgar to borrow money to pay overdue bills to state vendors in a failed effort to leverage money for the Chicago Public Schools.
Quinn’s move so enraged then-Comptroller Dawn Clark Netsch, she accused fellow Democrat Quinn of trying to playing a “political chess game” at the expense of state vendors who were owed money.
Just one more strike against the governor. Man, did he ever blow this one. Thoroughly.
*** UPDATE 1 - 1:07 PM *** From ABC7’s Twitter page…
Just in: Comptroller Dan Hynes says no to Gov. Quinn’s plan to borrow $500 million to pay state’s bills
If you’re a subscriber, that was expected.
*** UPDATE 2 - 1:15 PM *** Hynes has sent the governor a letter announcing his decision. Click here to read it. Page 2 is here. [Fixed links.]
Hynes points out that he has already signed off on $2.25 billion in borrowing over the past seven months…
“That is a historic amount of short term debt and the state will risk default if that money is not repaid by June 10, 2010. Any additional short-term borrowing such as you now propose would further strain a state budget that can barely accommodate the currently scheduled debt service and critical on-going payments our office must make, especially given the $900 million revenue failure you office has now projected.
“The expected ‘federal and state revenues in excess of $600 milliion’ you refer to has already been incorporated in the existing cash managment plan. My office must prepare this month to reserve funds for the first installment of the $2.25 billion to be repaid beginning in March. Absent an additional revenue source dedicated to the repayment of any new notes, there is insufficient flexibility in the latter half of the year for additional debt service payments. In essence, the proceeds from the short-term borrowing you request would need to be set aside immediately in order to pay it back. For this reason alone, I would have problems supporting your plan as presented.” [Emphasis added]
Hynes goes on to say that if the governor had, as promised, sold $3.5 billion in bonds to make the pension payment in September, things would be different. If the bonds were sold as late as the end of October, Hynes claimed, it “would have allowed the state’s General Funds including the Common School Fund to receive $700 million in cash reimbursements… and would reduce our current payment backlog by $667 million.”
Hynes also quotes “a former State Treasurer”…
“Rollover borrowing always digs government deeper into holes.”
That former treasurer was none other than Pat Quinn. Quinn made that statement when he was fighting with Jim Edgar in 1992 (see above). “Your current proposal is not dissimilar in that it effectively constitutes rollover borrowing,” Hynes wrote.
Hynes concludes by saying he is willing to work on a “comprehensive” plan, but one that “addresses less than 5% of the backlog” of state bills is “neither comprehensive nor is it fair to the very state service providers we both wish to assist.”
*** UPDATE 3 - 1:37 PM *** The treasurer’s office just said that they still have not seen any documents on the governor’s short-term borrowing plan. Quinn’s budget office promised them by this afternoon, according to Giannoulias’ spokesperson.
Breath-taking, ain’t it?
*** UPDATE 4 - 3:27 PM *** From Comptroller Hynes’ office…
An Open Letter to Illinois Service Providers,
I would like to begin by thanking you for your outstanding efforts in providing critical services to the people of Illinois. I remain impressed as always by the important work you do to ensure that our most vulnerable citizens are cared for and protected. Moreover, your ongoing commitment to continue working in good faith as business partners with the State of Illinois is truly commendable given the fact that the State has been anything but a good business partner in return. I know that the current payment situation has caused many of you personal anguish as well as professional difficulties as you struggle to maintain viable service levels.
Your commitment and perseverance stands in stark contrast to the state’s actions over the past few years. Providers have been placed in an extremely vulnerable situation as you were subjected to needless anxiety during budgetary stalemates that did not allow you to develop your own budgets and left you wondering what program levels would be funded and whether service terminations and staff reductions would be necessary. Now after too many of you have made painful decisions and sacrifices, the state is months behind in meeting its financial obligations to you, so I don’t blame you for being angry. You have every right to be.
The level of unpaid obligations in my office stands at $4.4 billion and will continue to grow as there is simply insufficient revenues to meet all the demands. The state has borrowed $2.25 billion that must be paid back within the next six months. There is a new proposal to borrow $500 million more, a sum that I believe will simply exacerbate the existing problem of paying back the money we already owe, and more seriously, give false hope to all of you awaiting payments from the state. I refuse to agree to a “solution” that addresses only 5% of the problem and even then only for the very short term at the risk of creating a bigger problem No matter what else you may hear about the benefits of more borrowing, that is my honest assessment.
Like you, I am disappointed as well as deeply concerned that you have been placed in this situation. You deserve better, and the people that you work with and care for deserve better as well. Instead of the non-stop cycle of extended payment delays, we need a comprehensive plan that will eliminate the deficit and restore fiscal stability to Illinois for the long term. Most importantly, it is time for our leaders to recognize that the public service community and its hundreds of thousands of employees is not just an essential purveyor of critically needed services to our most at risk population but is a significant element of our state’s economy. I not only recognize that fact but will continue to seek meaningful ways to address the problems confronting the service community and to maintain what is in many ways is one of Illinois most important infrastructure components.
In the meantime, going forward, I will work with you to the best of my ability, as I always have, and be honest with you, as I always have, to address the day to day problems that confront us.
Sincerely,
Daniel W. Hynes
Comptroller
*** UPDATE 5 - 4:13 PM *** Treasurer Giannoulias told reporters this afternoon that he is leaning in favor of supporting the plan. That would put Hynes out on a limb all by himself. Giannoulias apparently stressed that the federal Medicaid match would more than make up for interest and fees and that the money could be repaid.
This could turn around pretty fast. Stay tuned.
*** UPDATE 6 - 4:28 PM *** This ain’t gonna happen…
Gov. Pat Quinn says Illinois Comptroller Dan Hynes must reconsider his decision to oppose borrowing $500 million to help pay the state’s bills.
Quinn said Friday that “nope” was not an option when social services are at risk because agencies can’t pay their employees. They can’t meet payroll because they aren’t getting the money the state owes them.
*** UPDATE 7 - 4:32 PM *** I just got off the phone with the comptroller’s office. They were pretty surprised to learn that the treasurer’s people think there’s enough liquidity to pay off these short-term loans, even with the Medicaid match.
*** UPDATE 8 - 4:58 PM *** Quinn shoots back…
At a Chicago news conference, Quinn shot back with the kind of shaming, populist attacks that he’s gotten so good at. He chided Hynes for letting struggling social service entities to go unpaid, warning of “a human toll” if those agencies end up laying off their workers because they aren’t getting the money they’re owed from the state. He even invoked Christmas.
Quinn also pointed out that the state has previously engaged in short-term borrowing to pay bills 11 times during Hynes’ tenure as comptroller, and that Hynes didn’t refuse to sign off on those plans.
“We have a campaign going on; everybody knows that,” said Quinn — more or less openly accusing Hynes of holding up the money as a campaign strategy. “ . . . A policy of `no, no, no’ is not a good policy for the people of Illinois.”
*** UPDATE 9 - 5:00 PM *** Raw audio of Quinn’s Q&A with Chicago reporters can be heard by clicking here.
*** UPDATE 10 - 5:23 PM *** I just listened to the audio of the governor’s press conference. Quinn repeatedly went after Hynes for approving short-term borrowing for Rod Blagojevich even after he was arrested. Score on political point for Quinn. (On the other hand, Quinn could be pegged as even more of a bumbler than Rod). The governor also stressed a new AA rating from Fitch to say that the government was doing better than expected.
Overall, he did a good job handling the Chicago media and that’ll probably be reflected in their usual scant coverage.
- Richard Afflis - Friday, Dec 4, 09 @ 12:56 pm:
He has thoroughly blown a few things and had some very blatant misrepresentations. Despite all of this, he is still VERY comfortably leading in every credible poll out there. While he is not his predecessor, the campaign is certainly operating much like his predecessor’s.
He is a breath of fresh air from his predecessor. It would be nice to see his campaign stop the “need to be right” and the blatant misrepresentations that are out there. The republicans are LOVING it though. They are definitely getting fodder for November- on top of what they already have.
- Ghost - Friday, Dec 4, 09 @ 1:10 pm:
Hynes continues to out maneuver the Gov, but yet gets no traction in the polls (yet anyway).
I will be curious to see if any polling is done this weekend and what the results are.
- Screwball - Friday, Dec 4, 09 @ 1:12 pm:
This whole thing is really incompetent on a number of levels. First a month or two ago they shuffled out the OMB debt manager who was a holdover from the Blagojevich days. He was not a “Blagojevich person” just a competent guy, and brought in a new guy. My hat’s off to you Phil Culpepper, this mess never happened when you were in charge.
Second, it would have been very easy for Quinn to win on this point, which just speaks to the complete ineptitude of it. The backlog of unpaid bills is enormous and neither the AG, the Comptroller or the Treasurer could politically get away with saying no, even if they realistically thought the money might not be there to pay it back.
But when these things are done there’s an accordian file full of very specific documents that have to go to the three constitutional officers to get their sign off. Each office has policies they follow to do a thorough review, but what they’re really doing is having their offices’ lawyers go through them to make sure that they meet the statutory requirements so that the auditors don’t kill them down the road, politically they know what their decision is going to be the minute the documents come in the door.
As of right now Quinn’s office still doesn’t have any documents in anyone’s hands. That is beyond incompetent. These constitutional officers have a legal and fiduciary responsibility in this process. Even if they wanted to help Quinn, which at this point no one does, they couldn’t “sign off” without being able to say the deal was legal. Had OMB sent over documents at any point during this ordeal Quinn could have easily won the argument. People need to get paid for the work they’ve done. The incompetence her is just astounding. But what do I know, I’m just a screwball.
- Screwball - Friday, Dec 4, 09 @ 1:21 pm:
I guess my comment that they couldn’t politically get away with saying no to the borrowing given the backlog of bills was a bit flippant. Clearly given the events of recent days this issue has become politically more comfortable to oppose.
- Okay Then... - Friday, Dec 4, 09 @ 1:24 pm:
Rich, thank you for ALL that you do!
- Niles Township - Friday, Dec 4, 09 @ 1:25 pm:
Whether Hynes is right or wrong, to the average voter, to the extent they are even paying attention,I think this will look like Hynes is using his position and authority for his own political benefit.
- DuPage Dave - Friday, Dec 4, 09 @ 1:28 pm:
This is just the start of the really bad budget struggle that will last into July. Even if Quinn wins the primary as expected, he won’t be able to lead anyone anywhere (could he ever?) and will struggle with Madigan and Cullerton to develop a budget.
The Republicans will have a field day making the most of the struggle to build up their candidate (does it make a difference who it is?) and displaying the Dems as incompetent money managers, wasteful spenders, the usual.
In the meantime, Quinn is planning his (not very) secret state government shutdown as a campaign stunt. Perhaps he should remember that a similar stunt backfired on Newt Gingrich.
So sad that Quinn does not seem to recognize that he has already squandered the good will the fell on his shoulders in January, and is now tossing aside what is left of his reputation.
- OneMan - Friday, Dec 4, 09 @ 1:29 pm:
Boom,
Counting the days until there are Thompson center protests over unpaid bills in 3..2..1
- Secret Square - Friday, Dec 4, 09 @ 1:31 pm:
“Quinn is planning his (not very) secret state government shutdown as a campaign stunt”
When? Before the primary or before the general? If it’s the former I might want to start stocking up on canned goods and toilet paper now….
- 47th Ward - Friday, Dec 4, 09 @ 1:35 pm:
Niles, you might be right. On the other hand, the numbers speak for themselves and most people understand that you can’t continue to borrow money forever, especially when we have no idea how it will get repaid. The sooner we hit bottom, the sooner we can get to the “day of reckoning” that the Governor and General Assembly have postponed. If Quinn is going to make the case for a major tax increase, he should do so before the primary, not after. Let the debate be on their respective tax plans, and the primary a referendum on who will be better prepared to get Illinois through this nightmare.
I think voters could be persuaded that Hynes’ move is the responsible thing to do. Is there some political self-interest at play here? Maybe. But that doesn’t make this decision wrong.
Seems to me like Quinn is hoping he can put off making any tough decisions until February 3. That would be a disaster for the Democrats. Illinois is facing bad choices v. worse choices, and we need an honest debate about how best to move forward. At least Hynes’ move brings this subject to the forefront.
- Okay Then... - Friday, Dec 4, 09 @ 1:38 pm:
Mike Madigan cannot be too pleased right now.
The other bad thing for Quinn is that the media are on to him now and how he plays tricks with facts (e.g. Rick Pearson’s beautiful stroll down memory lane this morning) so, he probably won’t get a very sympathetic slant on anything moving forward.
- wordslinger - Friday, Dec 4, 09 @ 1:40 pm:
There are more cards to play here. Quinn’s up next.
He could sit down and work out a solid cash-management plan, or he could barnstorm the state and blame Hynes for vendors not getting paid.
I’d advise both Quinn and Hynes to tread very carefully here. Don’t talk about creating jobs when you’re not even trying to pay your bills.
- Okay Then... - Friday, Dec 4, 09 @ 1:46 pm:
Ok Word, I suppose you are right.
So, Hynes has to mount a very good and strategic offensive starting right about NOW and make sure that he gets his side of things out while placing Quinn on the defensive.
- ivoted4judy - Friday, Dec 4, 09 @ 1:49 pm:
We are becoming nothing more than “Mississippi with snow”. Providers can’t get paid, our debt is OVER $12bil by now, and gettting worse every day. And here is the funny thing, I serioulsy doubt that the voters are paying attention, and that Hynes gets any traction out of this. Primaries are funny elections, the Dem’s big problem comes in November 2010 when the angry voters really go to the polls. Cross and Radogno should DO NOTHING this session, and just let the voters see the mess next fall.
- Screwball - Friday, Dec 4, 09 @ 1:53 pm:
There was nothing honest about the debate that got us into this mess and there won’t be anything honest about the debate in the future. The Republicans won’t do anything other than complain, they won’t vote for revenue they won’t vote for cuts they just want to complain, and who can blame them at this point. The Senate Dems at least voted for revenue, but they got hung out to dry by the trail blazers in the House who are just a pathetic bunch. They voted for nothing, preferring to put their heads in the sand and hoping that everything just works out ok. Delightful.
The worst kept secret in the state is that we don’t have the money to get through this year. Which is nothing to say about passing a budget for next year. But because there’s an election in February no one wants to say this out loud. The Republicans don’t want to say it because then there might be real pressure on them to vote for revenue, and Hynes and Quinn are playing a game of chicken to see who brings it up first so that one can hit the other (see above). In the process no one is laying the groundwork with the un/underinformed public that the state is royally screwed so when the sky really is falling in a couple of months no one is going to believe the Illinois politicians who correctly point that out, because after all they’re just lying Illinois politicians.
We’re screwed.
- Loop Lady - Friday, Dec 4, 09 @ 1:58 pm:
thats what I said on a different post…we really are screwed…
- OneMan - Friday, Dec 4, 09 @ 2:02 pm:
Screwball the fact we can’t pay our bills is a bit of a secret among the general population.
I suspect Quinn’s next step will be protests.
- The Doc - Friday, Dec 4, 09 @ 2:11 pm:
I’m curious if part of Quinn’s rationale here is the expectation of additional direct federal aid to states. It’s being considered in Congress, and would certainly delay the day of reckoning enough to get Quinn past the primary, if enacted quickly.
- Okay Then... - Friday, Dec 4, 09 @ 2:17 pm:
Several of you are correct. The fact that Illinois is unable to pay its bill is a bit of a secret among the general population, and that’s what is helping Quinn’s poll numbers to-date.
And, isn’t this essentially Andy McKenna’s message in his latest campaign ad: Happier now? McKenna basically calls out Quinn for covering up the facts as to where this state stands fiscally and the trouble that it is in.
Well, the state’s true fiscal situation is about ready to hit the fan, isn’t it?
Merry Christmas Everybody!
- Rich Miller - Friday, Dec 4, 09 @ 2:18 pm:
===covering up the facts as to where this state stands fiscally===
Hardly. He’s made no bones about the deficit. His problem in this instance is incompetence, not some Nixonian cover up.
- Okay Then... - Friday, Dec 4, 09 @ 2:24 pm:
Okay Then…I stand corrected.
- VanillaMan - Friday, Dec 4, 09 @ 2:41 pm:
Quinn blows it because he just didn’t do his job. His loan request doesn’t have it’s paperwork in place. A governor cannot expect other statewide officials to work with him when he doesn’t even do the basic work.
Hynes had no choice. He has nothing to approve from the Governor, other than talk. Giannoulais is in a similar situation.
All of these men are Democrats running for office. If this party wishes to win the General next year, it will need to find better candidates than these.
Get rid of them all.
- Big Policy Nerd - Friday, Dec 4, 09 @ 2:46 pm:
It is no secret that the State can’t pay its bills. Talk to your friends who work for social service providers and listen to some of their stories. Go to church on Sunday and listen to the announcements about food pantries and homeless shelters kicking people out and denying people shelter. One of my old colleague’s has to drive all over the place to see her caseload… She hasn’t been paid or reimbursed in well over a month. She is taking care of her patients on her own dime. Who knows when the check is coming in? You call and there is no answer to that question. No one knows. Every day that goes by more and more people are being impacted by this. Social service providers and the people who depend on them are the ones who are taking the big hit here.
- cassandra - Friday, Dec 4, 09 @ 2:47 pm:
My impression is that he has a basic understanding of how state finances work but he isn’t all that interested in this or the other mechanics of government. It’s more fun to go around the state giving puff speeches about all manner of social ills, cutting ribbons, and talking about how honest he is. Another campaigner we’ve got here. For four, eight years?
Stermer doesn’t seem to have his back either.
Have we learned anything?
Pingback Debt Loan – Latest Articles – Dissident Voice « Debt Loan - Friday, Dec 4, 09 @ 2:53 pm:
[…] Hynes decision at 1 o’clock – UPDATED x3: “No” – The Capitol Fax Blog* 12:48 pm – Comptroller Dan Hynes will announce his decision on whether to sign off on a $500 million short term state loan at 1 o’clock this afternoon. I’ll update this post shortly thereafter. While we wait, take a look at this Trib story […]
- um - Friday, Dec 4, 09 @ 2:58 pm:
The bill pile up extends beyond the community system although they are the least able to withstand the constant lack of payment and increasing cuts and reserves. State employee health care bills that are covered are not being paid. The snowball effect of sweeping funds hits more and more e.g. the interest that went to pay legal aid agencies is not available because the funds were swept, and there is goes the interest - many of those designated funds that have been swept since 2003 had a purpose - fine the drug offenders - put a portion of the fine into treatment - now take the funds away from drug treatment - so when does state government shut down - or is that just the small number of employees that have to take furlough days?
- Pot calling kettle - Friday, Dec 4, 09 @ 3:00 pm:
Where were the objections when Blagojevic was doing this? These woes are not new, the tricks are not new. Quinn clearly does not play them well, but he clearly expected everyone to sign off as they had for Rod.
And EVERYONE signed off.
- Pot calling kettle - Friday, Dec 4, 09 @ 3:01 pm:
BTW, that should be Quinn’s message: “Dan Hynes signed off for Rod, but he won’t sign off for me.”
- Bill - Friday, Dec 4, 09 @ 3:05 pm:
Rod’s people always had their paper work done.
- Okay Then... - Friday, Dec 4, 09 @ 3:13 pm:
==“Rollover borrowing always digs government deeper into holes.”==
==That former treasurer was none other than Pat Quinn. Quinn made that statement when he was fighting with Jim Edgar in 1992 (see above). “Your current proposal is not dissimilar in that it effectively constitutes rollover borrowing,” Hynes wrote.===
Hoisted by his own pertard, yet again—just like the Cutback Amendment. Priceless. The Republicans do not need say anything right now. Just sit back, smile and take copious notes. Does Mike Madigan want to go into a general election with Quinn topping the ticket, and take the chance?
- Obamarama - Friday, Dec 4, 09 @ 3:14 pm:
===Rod’s people always had their paper work done.===
Ah the old Illinois Democratic conflict: do you want smart, corrupt people in power–or honest, inept people?
- OneMan - Friday, Dec 4, 09 @ 3:23 pm:
===Rod’s people always had their paper work done.===
So did the feds, that’s why it’s Quinn’s problem now.
- Burrito Bandit - Friday, Dec 4, 09 @ 3:24 pm:
Egad. Quinn’s and his policy people need to sit down. Take a time out, get all sides in the room and figure out what is going on. If Hynes and Quinn want to make this a political war- no one wins. Turns people off in a Dem primary.
If you want to look at it from a political lens, this could be the “hail mary” pass from Hynes. He has dumped a lot of money on tv. Polls haven’t given him the traction he needs, so he hopes this is it. Earlier commentators are right- social service providers do get screwed. Also, i do think Hynes got in a small fight with Blago about this during a budget impass.. But state workers were furious that they might not get paid, so Hynes let the borrowing continue.
- Okay Then... - Friday, Dec 4, 09 @ 3:34 pm:
You still think Quinn is honest? Really?
Did you listen to the audio the other day. He was adamant that Alexi had already signed off on the borrowing plan. Did you read the Tribune link posted at the top of the thread?
Now, I am wondering what else this year Quinn has been less than “accurate” about:
*Give $15,000 get face time with the Governor
*Refusal to release phone records from a personal phone that he used to conduct state business
*Hadn’t a clue as to who challenged Doc Walls’ petitions and why
*Going mum on Carolyn Brown Hodge’s mysterious abrupt departure
*I didn’t fall asleep at the debate, I tell you! I didn’t! The video was doctored, don’t believe what your eyes are telling you.
etc. etc.
These things are all in the past, so I guess it is just best to let them stay there, for now, but to still suggest that he is honest seems a bit of a stretch especially in light of all that has transpired this week alone. I’ll grant you the inept part, though.
- Loop Lady - Friday, Dec 4, 09 @ 3:46 pm:
I know that’s you WCW…
- bad timing - Friday, Dec 4, 09 @ 4:11 pm:
If the comptroller would have said no to the first $2.25 billion I could by into his argument now, but thiis really looks like he is messing with people’s lives for his own political ambition, don’t see how this works for him, unless he has more revenue available to him then he is letting on.
- Ghost - Friday, Dec 4, 09 @ 4:18 pm:
bad timing, that makes absolutly no sense. How ishe messing with people lives?
the request was for 500 Million, which has tobe padi back with interest, increasing the debt. The amount we need to cover the bills is 4.4 billion. There is no new rvenue idnetified coming in, so we are robbing peter to pay paul, and increasing the debt load even more.
The only thing political here is Quinns reckless conduct and your comment that this is playing politics.
- bad timing - Friday, Dec 4, 09 @ 4:23 pm:
not getting provider bills paid in a timely fashion is resulting in diminshed services to the state’s most vulnerable. State can borrow for very little right now and move its cash flow position downstream while the recovery takes hold. Governor Edgar used this manuever over several years in the early nineties. Plus, it is costing the state 12% interest to borrow from its vendors, alot more interest then a short term certificate.
- Fred former Anon - Friday, Dec 4, 09 @ 4:40 pm:
Now we all await the layoffs.
- bad timing - Friday, Dec 4, 09 @ 4:46 pm:
BTW –I stated it had the appearance of playing poltics, personally I do not question the Comptroller’s motives, I have always found him to be an honest and dedicated public official, but with an election right around the corner, some will suggest this is poltically motivated, especially if he raised no concerns with the earlier borrowing.
- Bill - Friday, Dec 4, 09 @ 4:47 pm:
Don’t worry, Fred. Quinn will screw up that paper work too.
- Okay Then... - Friday, Dec 4, 09 @ 4:52 pm:
Quite the cliffhanger we have going here. Illinois politics is a soap-opera. I just hope that we don’t have wait until next week for update #8…
- Rich Miller - Friday, Dec 4, 09 @ 4:53 pm:
bt, I think what Hynes is saying here is that he approved the other borrowing because he saw how it could be repaid, and couldn’t see how this loan could be repaid.
- Rich Miller - Friday, Dec 4, 09 @ 4:54 pm:
===I just hope that we don’t have wait until next week for update #8… ===
I just hope I don’t have to sit here all night. I need a nap.
- Debbie Hartshorne - Friday, Dec 4, 09 @ 4:55 pm:
I echo what Fred stated. Our agency has been providing services to frail elderly people who would be in a nursing home taking way more Medicaid and state dollars! And we haven’t even been paid for all our services prior to July and only a dribble since July. How can we go on paying our staff, and reimbursing mileage when we aren’t getting paid from the state? Rockford has over 17% unemployement which is disgraceful. I hate to add my staff to that number and see our clients go into a nursing home - who is that going to help? Why is politics entering into this when it is people’s lives at stake?
- bad timing - Friday, Dec 4, 09 @ 5:05 pm:
once the new fiscal year kicks in you borrow again, that’s what edgar did, it continues to improve your cash flow situation until revenues pick up..so I don’t understand Hynes argument–the whole world doesn’t stop on June 30th–what you are out are the interest costs that are still cheaper than the interest chareges under the prompt pay act. Hell, it got so bad under Edgar he even wanted to bond out billions in unpaid Medicaid bills.
- Okay Then... - Friday, Dec 4, 09 @ 5:06 pm:
===He chided Hynes for letting struggling social service entities to go unpaid, warning of “a human toll” if those agencies end up laying off their workers because they aren’t getting the money they’re owed from the state. He even invoked Christmas.===
Ok, so if this is now urgent, why has it taken Quinn’s office this long to finally present a finalized, and presumably correct, plan after weeks of fooling around with it?
BTW…When does Quinn go to Germany, next week or the week after?
Riveting stuff going on here.
- RJW - Friday, Dec 4, 09 @ 5:15 pm:
Bad Timing:
The problem Hynes has is that $500 million doesn’t do squat. I know that sounds flippant but I’ve worked with this stuff for 12 years. We have to pay it back in a few months. It’s treading water. If they truly wanted to do some good the borrowing plan would be more like $2 billion. That would catch some bills up in a hurry. Yeah we have to pay it back and the bills will fall way behind again, but unless somebody does something drastic we’re stuck with this.
- Pot calling kettle - Friday, Dec 4, 09 @ 6:31 pm:
The problem with Hynes’ position is that he has been willing to play the game up until now. It is perfectly legitimate to question why he has suddenly seen the light.
Hynes’ letter to the service providers shows that this is pure politics. He let this go on for years with no similar expression of concern or unwillingness to borrow.
As a solid Democrat, I am baffled as to whether I should vote for Quinn (who cannot get any cooperation from anyone and seems to be incredibly inept) or for Hynes (who is rapidly losing all my respect for engaging in this kind of play).
(Note to Quinn’s people: No need to credit me for my 3:01 post.)
- Rich Miller - Friday, Dec 4, 09 @ 6:40 pm:
===The problem with Hynes’ position is that he has been willing to play the game up until now. It is perfectly legitimate to question why he has suddenly seen the light.===
Please.
Where have you been this week? Quinn changed the request and the timing several times then sprung a deadline on everybody without notice and without filling anyone in on any details at all and withholding other info from the AG.
There’s something mighty bizarre about this whole thing and, also, something just a little fishy.
- Anon - Friday, Dec 4, 09 @ 7:11 pm:
You can’t compare past borrowing actions under Blago to today’s backlog. Just 1 year ago, the state borrowed $1 billion (or so) when there was almost $2.5 billion in bills. Today, there is over $4.3 billion bills owed, but the state has already BORROWED $2.2 Billion which must be paid back within 6 months. Any more borrowing will cause even more delays since you have to build up reserves to pay it back which means less available $ to pay bills. Also, bloogers should read Hynes’ letter … especially where he points out Quinn’s delay in the $3.5 Billion pension note plan that was suppose to have been done in September. Now who’s dragging their feet?
- Pot calling kettle - Friday, Dec 4, 09 @ 11:20 pm:
As I said, Quinn looks to be incredibly inept.
But, Hynes’ letter does not talk about his concerns that the Governor is incompetent. He writes “I refuse to agree to a “solution” that addresses only 5% of the problem and even then only for the very short term at the risk of creating a bigger problem” He’s been agreeing to exactly that kind of “solution” year after year!
Hynes would do better for himself and the state by being helpful. Nothing is stopping Hynes from laying out a plan to get us through the rest of the year; Hynes has been grousing about this for at least as long as Quinn has been dithering. Plenty of time for Hynes and his crack team to put out a bold plan of action and suggest that the Governor use it.
If Hynes wants to lead the state, and if he thinks Quinn is unable to do so, Hynes should have produced a plan that could have been acted upon back in November. And even if no one acted on it, he would be in the position of appearing more like the leader he claims to be.
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Bizarre and fishy? It looks to me like the Governor and his crew don’t know what they are doing and they a receiving zero support from anyone else in Springfield. In any circumstance, a new crew would need a lot of support from experienced colleagues on what to do, how to do it, when to do it, etc.
What’s happening now looks like exactly what I would expect to happen if the Gov. and his staff were getting no help. Whether they aren’t looking for help or have been left to swing in the wind, you would know better than I.
- Raymond Moley - Sunday, Dec 6, 09 @ 2:35 pm:
I don’t believe the public has any clue about what a $12 billion plus budget deficit means. We have reached a historic point where the actual ready cash and future revenue estimates will not support state payroll, daily operations, and the current outstanding debt for this fiscal year.
Obviously, it’s in Quinn’s and incumbent legislators’ interests to delay the fiscal meltdown until after Feb 2nd. However, it’s in the Public’s interest to address these issues sooner rather than later. It’s the proverbial, “Good Government makes Good Politics” for Hynes.
Harry Truman once said that a politician should never be afraid of controversy because controversy not only allows you to define yourself, but also your opponent. It’s time for Hynes to standup as the fiscally responsible adult and force Quinn and the legislature to acknowledge and clean up Illinois’s financial mess.