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Another cost of the impasse

Wednesday, Mar 15, 2017

* When not paying vendors costs the state more money…


That makes plenty of sense. Stiff your plumber and he won’t come back. Stiff another plumber and word’s probably gonna get around that you’re a deadbeat. It’ll cost you more to hire the third one, if you can even find someone willing to do the work (and, as pointed out in comments, the willing plumber might not be a good one).

- Posted by Rich Miller        

20 Comments
  1. - jimk849 - Wednesday, Mar 15, 17 @ 8:57 am:

    The only thing you could do in that case would be to bust the plumbers union.


  2. - RNUG - Wednesday, Mar 15, 17 @ 8:59 am:

    I’ve been hearing about this for a while. Here is one example; the State has burned so many office supply vendors that even the national chains have been cutting them off.


  3. - Union thug - Wednesday, Mar 15, 17 @ 9:04 am:

    Get term limits and all the vendors will come back with even lower bids for the work /s


  4. - AC - Wednesday, Mar 15, 17 @ 9:11 am:

    It makes sense. At the very least, vendors will build in their borrowing costs, or the cost of selling their invoices to investors. It’s just their cost of doing business. At worst, they’ll decide it isn’t worth the hassle.


  5. - Norseman - Wednesday, Mar 15, 17 @ 9:11 am:

    I guess these businesses don’t appreciate the efforts of our business governor.


  6. - DuPage - Wednesday, Mar 15, 17 @ 9:12 am:

    The quality of the third plumbing companies work would match the state’s prompt payment of the bill./s


  7. - Oswego Willy - Wednesday, Mar 15, 17 @ 9:13 am:

    If you look at the Bankruptcy manner Rauner’s business history and tact shows, it’s no wonder Bruce Rauner sleeps well.

    Getting and refusing to pay bills is a Rauner hallmark for “decades”…


  8. - wordslinger - Wednesday, Mar 15, 17 @ 9:14 am:

    Of course. Common sense.

    The hilarity is, the same crew that is failing at Lemonade Stand best practices claims they can transform “the economy” with Soviet-style central planning.

    They just can’t project how in any quantifiable way.


  9. - A Non - Wednesday, Mar 15, 17 @ 9:25 am:

    But stiff a rich plumber and it may be worth his while to wait for the interest payment and make a profit.


  10. - LakeviewJ - Wednesday, Mar 15, 17 @ 9:30 am:

    Page viii of the latest Auditor General summary of the latest state CAFR says we’ve racked up $109.56m in interest on late bills over past 18 months.

    $100m here, $100m there, eventually you’re talking about real money.


  11. - Content Disabled - Wednesday, Mar 15, 17 @ 9:31 am:

    I work in Procurement at a state agency (and I’m taking a vacation day today so I’m posting this on my own time), and it’s like pulling teeth to get bids on even the cheapest of purchases.


  12. - Earnest - Wednesday, Mar 15, 17 @ 9:53 am:

    Social services isn’t the only beast being squeezed. It’s large corporations that have the financial resources to wait for payment for extended periods of time. Smaller vendors, the ones supporting our communities, are out of luck.


  13. - don the legend - Wednesday, Mar 15, 17 @ 10:18 am:

    I’m quite certain Rauner is surprised by this newest revelation. /s


  14. - Arthur Andersen - Wednesday, Mar 15, 17 @ 10:26 am:

    Fewer suppliers:higher prices. Perhaps that is why the administration, right or wrong, is taking payroll one time out of the most relevant revolving funds to build their balance a bit because things are getting more expensive. Many agencies’ inability to pay when the bill comes from CMS also doesn’t help.


  15. - Anonymous - Wednesday, Mar 15, 17 @ 11:16 am:

    I suspect some wealthy vendors who may happen to be friends of Bruce might take contracts as investments for the interest payout at the end.


  16. - Anon221 - Wednesday, Mar 15, 17 @ 12:55 pm:

    Maybe Mendoza would want to take another look….

    from 2015 ULINE’s business with the state

    http://www.sj-r.com/article/20150613/NEWS/150619728


  17. - Oh Really? - Wednesday, Mar 15, 17 @ 1:33 pm:

    Three responses:
    1. Only the big corporate incumbent vendors can float 7+ months of receivables, so bids get more costly and small vendors are out of luck.
    2. Check into the who’s who behind the state vendor payment program and you will find “friends” of the entrenched political elite profiting handsomely from the interest owed to vendors.
    3. I have a painting contractor friend. He painted offices for the state. He is an MBE registered contractor. He exhausted his credit line and his business went bankrupt waiting for payment from the state. Next time a politician claims to be creating jobs, remind them that they are actively killing jobs by not passing a balanced budget.


  18. - anon - Wednesday, Mar 15, 17 @ 2:15 pm:

    The only vendors remaining can afford to “float” a loan to the state. IL will be paying interest on late payments for years after state employees die. IL citizens forget vendors provide anything provided for by the state: rock salt for streets, food/tp/office supplies used in prisons/IL VA Homes/mental healthcare facilities, weapons/uniforms for ISP.


  19. - ejpp - Wednesday, Mar 15, 17 @ 2:31 pm:

    Maybe this is the group that can finally force the legislators to do their job and pass a budget by joining together and refusing to provide any further services, products to the state until a balanced budget is passed that also pays off the current monies owed to them.


  20. - Bear3 - Wednesday, Mar 15, 17 @ 2:34 pm:

    Our Governor is only about himself as a business man. Must be human and learn how to handle people other than “your fired”.


Sorry, comments for this post are now closed.


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