Capitol Fax.com - Your Illinois News Radar » Mendoza moves money around in face of pandemic
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Mendoza moves money around in face of pandemic

Wednesday, Apr 8, 2020

* Capitol News Illinois

The Illinois comptroller’s office borrowed $105 million from various funds in March, in large part so it could make bigger-than-normal payments to hospitals as they brace for the peak of the COVID-19 outbreak later this month.

But Illinois Comptroller Susana Mendoza is advising all state vendors that there will likely be payment delays in April, in part because the tax filing deadline for both state and federal taxes has been pushed back to July 15.

The inter-fund borrowing was noted last week in the state’s monthly revenue report from the Commission on Government Forecasting and Accountability. The comptroller’s office has authority to engage in such borrowing to meet short-term cash flow needs of the general revenue fund.

That report noted that total tax receipts in March, at $3.4 billion, was about what was expected, and 3.3 percent above the same month last year. But it also noted that the impact of the economic slowdown brought on by Gov. JB Pritzker’s stay-at-home order and closure of nonessential businesses had not yet shown up in the revenue numbers.

Some of that borrowed money was used to capture federal matches and contributed to a $145 million increase in federal revenue in March, according to COGFA.

* Excerpt from Mendoza’s statement issued last week

State revenues, estimated at well over $1 billion, traditionally expected in the month of April due to increased seasonal income tax payment activity, will be delayed until at least July, given the extended tax payment deadlines announced by both the state and federal governments.

In addition to the deferred revenues from the filing extension, it has not yet been determined what additional negative fiscal impact reduced economic activity related to this pandemic will have on our state revenues going forward.

The most immediate priority today, and in the coming weeks, will be emergency funding for critical medical equipment and services necessary to combat the COVID-19 coronavirus on the front lines. While our immediate priority is to provide funding necessary to fight the pandemic and save lives, the core priorities of the IOC remain the same.

Healthcare, debt service, K-12 funding, state payrolls, and required pension payments will continue to be made, and the state’s most vulnerable citizens’ urgent needs will continue to be served.

As in past times of budgetary difficulties, the predictability and the timing of specific payments may be uncertain, but the provider and vendor community can be assured that, as in the past, all state payments will eventually be made, and all state commitments will be honored.

Given this reality, the IOC asks for understanding and patience as we address the impact from this pandemic, while continuing to manage an existing state bill backlog of over $7 billion.

The latest bill backlog number is $8.096 billion.

- Posted by Rich Miller        

7 Comments
  1. - pawn - Wednesday, Apr 8, 20 @ 10:24 am:

    Just another reminder that we were on track for better fiscal health when the Quinn-era tax increase expired and Governor Rauner decided to create a crisis for his leverage to fight with the unions. In a different universe, in which the tax did not expire, the bill backlog was dramatically reduced or even eliminated, and we did not put the state through two years of fiscal insanity, in that world we would have been much better positioned for this current crisis than we are now. I had hoped we were on the path of putting the disastrous political vanity career of Bruce Rauner behind us, but I see that we continue to pay for his hubris.


  2. - Demoralized - Wednesday, Apr 8, 20 @ 11:06 am:

    I think Governor Rauner was a horrible Governor and make the state’s financial condition 10 times worse than it should have been, but attempting to link him to the financial woes being caused by this pandemic is far feteched.


  3. - AD - Wednesday, Apr 8, 20 @ 11:10 am:

    I’m a Democrat and support Susana, but man do we miss JBT right now. People like Judy that are sharp, trustworthy and not afraid to reach across the aisle are who we need now and I’m not seeing the leadership in that office any more.


  4. - My 2 Cents - Wednesday, Apr 8, 20 @ 1:03 pm:

    -AD-
    I kindly disgaree. I miss JBT also, she was one the best ever. However I think Comptroller Mendoza is doing a fine job.


  5. - John Deere Green - Wednesday, Apr 8, 20 @ 1:07 pm:

    ==attempting to link him to the financial woes being caused by this pandemic is far feteched.==

    It absolutely is not far-fetched. You state he made “the state’s financial condition 10 times worse than it should have been.” The degree to which he did that aside, his actions not only delayed Illinois’ recovery, they set it back drastically. A far different path from the one in which it saw the bill backlog decline, and a large reason it did is because it had additional revenues. No budgets for two years, relying on court orders and consent decrees for mandatory spending, significant drops in needed revenue. The state would have been in a much better financial position to combat the effects of this pandemic if not for his silly and damaging ideological war. Great financial position? No. Ideal? No. Better? Absolutely.

    Illinois also suffered eight bond ratings downgrades from the three ratings agencies during the Rauner years. Would there have been downgrades with four more years of Quinn? Maybe, maybe not. We’ll never know. We do know Rauner gave us eight downgrades that has the state teetering on junk and paying borrowing penalties out the nose.


  6. - Nanker Phelge - Wednesday, Apr 8, 20 @ 1:36 pm:

    She is using the tax deadline extension as an excuse. She has reduced staffing. That accounts for payment delays.


  7. - Douglas - Thursday, Apr 9, 20 @ 12:39 am:

    No one here really seems to get it. Six straight years of population decline for the state, 5 for chicago, unemployment among the highest of states in 2019 and many of you just think you can continue to tax. Companies and people do not have to stay, then who will you extort?

    You advocate a slow death of Illinois, rather than accept that there are serious problems that need reform.


TrackBack URI

Sorry, comments for this post are now closed.


* Pritzker calls up 250 more IL National Guard members, deploys 300 more ISP troopers for areas outside Chicago - Issues disaster proclamation for 9 counties - Says Trump has"fanned the flames instead of bringing peace and calm" - Chicago requested "limited role" for National Guard - Of Trump: "I really think it is time to call for calm" - All community-based COVID-19 testing sites closed - "We're being responsive as municipalities have asked us to step in" - "I don't want to dominate peaceful protesters who have legitimate grievances" - On Trump spat: "I think people should know what we stand for" - ISP has "several different missions" - Disaster declaration gives flexibility
* Rep. Maurice West has an 8-point plan
* A quick programming note
* Question of the day
* 974 new cases, 23 additional deaths
* *** UPDATED x1 *** ISP seals off expressway exits
* Some dummies will believe absolutely anything they see on social media
* A quick look around
* *** UPDATED x1 *** Not sure what to even say about this
* Rep. Chris Welch outlines a way forward
* Statehouse, SoS offices to close today ahead of BLM rally
* Jacobson sues
* Looking for something to do?
* We need a national system
* With mandates off, pray for common sense
* Open thread
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* *** LIVE COVERAGE ***
* Pritzker implores protesters to "not force a difficult second rebuilding on our small businesses in the course of expressing your very justified pain"
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

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

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

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


Loading


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

Archives
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
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




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller