One year after illinois raised individual and corporate income tax rates, the state remains in a precarious fiscal position with persistent payment delays – and the situation is unlikely to significantly improve in the near-term.
The backlog of unpaid bills from the General Funds in the Comptroller’s office (ioC) alone stood at $4.273 billion at the end of this quarter – and that number only tells part of the story. Specifically, the total accounts only for what has been submitted to the Comptroller’s office for payment, and not what is being held by state agencies. For example, the Department of Healthcare and Family Services is holding an estimated $2 billion in Medicaid bills alone, which was not the case last year.
When those totals are combined with other obligations, including corporate tax refunds, employee health insurance and interfund borrowing repayments due to other state funds, the Comptroller estimates the backlog to be around $8.5 billion.
in addition, the level of unpaid General Funds bills is up several hundred million dollars since the end of last quarter, and has continually exceeded $3 billion over the last year. the cash flow situation is unlikely to improve in the near-term, as the state this year will make its pension payments with current revenues and not bonds, and Medicaid spending is projected to dramatically increase in the next six months.
* However, Gov. Pat Quinn’s budget office recently put the bill payment backlog at $7 billion…
* $3.5 billion in vouchers held at the Comptroller’s Office
* $2 billion in Medicaid vouchers held at agencies to manage payment cycle
* $0.5 billion in business tax refunds
* $1 billion in group health insurance premiums.
Since that was written earlier this month, vouchers held at the comptroller’s office have apparently increased by $700 million. So, there’s not much difference between the two.
* In other news, Wisconsin Gov. Scott Walker attempted again to deflect negative public opinion away from himself by whacking Illinois. Walker’s opponents just gathered a million signatures in a recall attempt, but Walker says Illinois is worse. Watch…
- 3rd Generation Chicago - Wednesday, Jan 18, 12 @ 1:16 pm:
This is hurting a lot of health care facilities and possibly ruining their credit with vendors. How many vendors are these facilities paying late fees to? And how much $4 in late fees will be passed along to us, as consumers?
- 3rd Generation Chicago - Wednesday, Jan 18, 12 @ 1:17 pm:
For not setting up a gubernatorial campaign,
for not encouraging outside agencies to downgrade our debt,
for not telling others to disregard what the governor’s financial staff says,
for not misstating history,
for not reiterating artificially inflated pension numbers,
for not creating talking points for otherwise ignorant Congressional candidates,
So, I certainly feel better about our situation here in Illinois after hearing about Walker’s trevails. I can sleep easy now.
Wisconsin is about to spend what is reported to be about $9Mill in this recall event. Earlier attempts to unseat incumbents failed to unseat the GOP as the majority in the State Senate. This in a state arguably as blue as Illinois, if not more so.
One of the first to put her name in the ring is a perennial candidate who has been beaten in her attempts at elected office including the AG. She was beaten in districts where democrats are the majority. I also notice the sky hasn’t fallen on Wisconsin since Walker was elected. Reports of the demise of the education system if his reforms were put into place seem to be missing from the press.
The election to see if anyone is going to replace Walker will be the prime indicator of the views of the majority in Wisc, not the number of signatures collected on recall petitions.
I think most of Walker’s problems stem from the fact that he said nothing about future plans during his campaign for office. It all came out of nowhere, after he had taken office Even after the unions had made concessions that saved the state a lot of money. Walker’s biggest sin is more about fraud and arrogance than anything else. I mean would the man have been elected if he told the voters exactly what he was gonna do? Somehow, I don’t think so.
“Leigh Ann Stephens wrote a letter in August ‘asking, pleading’ for $50,000 the state owed to the DuPage Center for Independent Living, where she is executive director. It was the third time in two years that she had sent a hardship letter warning the center, which helps people with disabilities live outside of costly nursing homes, would close if it wasn’t paid.”
But we’re going to close state facilities and rely on these service providers to fill the gaps?
The State either passes the 8.5 Billion dollar bond issue to pay the old bills, or increases taxes again to get 8.5 Billion for 1 year, or make 8.5 Billion dollars in cuts in next years budget to pay off the back bills. Which is it? oh wait….lets kick the can….that’s easier.