* Press release…
Illinois Comptroller Susana A. Mendoza has paid back the final $297 million in short-term borrowing from 15 state funds needed to recover from the 2015-2017 budget impasse.
In August 2017, when the Illinois Office of Comptroller first used the interfund borrowing tool authorized by the General Assembly, Illinois’ bill backlog was more than $14 billion. Between then and January 2020, $2.3 billion was borrowed from various state funds and through the State Treasurer’s Office so that essential payments could be made for medical bills and social and human services.
With stronger-than-anticipated Fiscal Year 2022 revenues through March, this final payment is months earlier than the plan enacted by the legislature and Governor to repay the funds in full by June 30.
“Not only did we pay off our short-term debts, but we paid them off early,” Comptroller Mendoza said. “This highlights the progress Illinois is making in achieving fiscal responsibility. This week, I will inform the credit rating agencies of the good news of this final repayment of state borrowing.”
The payoff is in addition to the $3.9 billion borrowed from the federal government, and already repaid, for state obligations during the COVID-19 pandemic. The $2 billion paid in full in January to the Federal Reserve’s Municipal Liquidity Facility was repaid nearly two years early, which is expected to save taxpayers $82 million.
The bill backlog is now “accounts payable”
Now that Illinois has been paying its bills in about 15 business days since July 1, 2021, a more accurate description of the State’s pending liabilities should be used.
“With the state’s excellent progress in paying down our bills from the record $16.7 billion backlog caused by a reckless and irresponsible budget impasse, the Illinois Office of Comptroller is retiring the ‘backlog’ term and instituting ‘accounts payable,’ since we are well within 30 days of paying our state vendors and providers,” said Comptroller Mendoza.
The snapshot of pending bills as of Tuesday morning represents liabilities that are not “backlogged,” but rather reflects the ongoing processing of bills which averages around $2.5 billion each month. This is especially true of statutory fund deposits, known as transfers, that make up $2 billion of the State’s current $3 billion of pending liabilities. Those transfers will be made by the IOC as the need arises for each respective state fund. Thus, it is more accurate to refer to these standing transfers as “accounts payable.”
Also, keep in mind that ARPA funds were not deposited by Illinois until July 22 of last year, which was weeks after the bill payment cycle was reduced to 15 days and months after it was brought below 30 days.
- DuPage Dad - Wednesday, Mar 30, 22 @ 9:26 am:
People like to joke about how IL will never financially recover but you have to start somewhere. Give up/rip up everyone’s pension isn’t realistic or fair. Getting your today in order (job done) is a prerequisite to getting tomorrow (the work has begun with a long road ahead) solved as well.
- TheInvisibleMan - Wednesday, Mar 30, 22 @ 9:36 am:
== isn’t realistic or fair ==
Or needed.
If I recall the tables correctly, pension payments will start decreasing as a total share of the budget within 10 years. While not wine and roses quite yet, it’s also not spiraling out of control as some spelunkers like to suggest.
Long term, there is a path out of our current financial position. Anyone old enough remembers the state of the California budget in the early 00s, and anyone too old remembers NY in the 70s.
It is my position that the screaming will get louder from the usual corners, precisely because the direction and improvements are becoming harder to ignore - and what was once only a vague long term fiscal benefit is finally arriving on our near term fiscal horizon.
- PublicServant - Wednesday, Mar 30, 22 @ 9:39 am:
Good News again regarding Illinois financial situation. Thanks JB, and Susan.
- Give Me A Break - Wednesday, Mar 30, 22 @ 9:39 am:
The bill cycle being where it stands today is nothing but a miracle for those who have for years gone months waiting on payments.
Mendoza has to be given credit for how she kept many human service providers afloat during past budget shortfalls and lack of budgets.
Her team went out of their way to assist processing vouchers and payments when some providers were facing skipping payroll due to lack of funds.
- Baloneymous - Wednesday, Mar 30, 22 @ 9:39 am:
hopefully they can retire the term bill backlog permanently. this is good news. would love to see another upgrade from the ratings agencies soon as well.
- 47th Ward - Wednesday, Mar 30, 22 @ 9:44 am:
I like the change from Backlog Voucher Report (BVR) to Just Bill Payin’ (JBP).
- illinifan - Wednesday, Mar 30, 22 @ 9:57 am:
Where is the Tribune commentary on this accomplishment? Unfortunately if it does not serve another agenda there will be crickets heard.
- Pundent - Wednesday, Mar 30, 22 @ 10:02 am:
Functioning government doesn’t meet the spelunkers narrative or that of the editorial boards, and although boring, it should always be the objective.
- DuPage - Wednesday, Mar 30, 22 @ 10:03 am:
Dear Comptroller Mendoza,
Was the dental insurance for SURS and SERS included in the bills you have been able to pay? When should the dentists expect to get paid?
- Anyone Remember - Wednesday, Mar 30, 22 @ 10:07 am:
===I like the change from Backlog Voucher Report (BVR) to Just Bill Payin’ (JBP).===
Using “BVR” as the acronym for bills caused by the last administration is gold. Think we should keep the monthly report, even if the amount is $0. Use it alongside JBP …
- Grandson of Man - Wednesday, Mar 30, 22 @ 10:11 am:
“Where is the Tribune commentary on this accomplishment? Unfortunately if it does not serve another agenda there will be crickets heard.”
To the professional Illinois doomsayers and fiscal scolds, the only thing that frightens and angers them more than a failed Democrat is a successful one.
- In the know - Wednesday, Mar 30, 22 @ 10:20 am:
As I remember it, some of the marijuana tax money went to the back log of bills. Should that now be moved to something else?
- Anotheretiree - Wednesday, Mar 30, 22 @ 10:25 am:
==Dupage= My last unreimbursed Dental visit was 3.5 months ago. Prior to early 2000’s, I would get a check before the next 6 month visit. Things began to deteriorate around Blago times. Been good since Mendoza/Pritzker. How old is your oldest bill ?
- JS Mill - Wednesday, Mar 30, 22 @ 10:32 am:
In less than one term the Pritzker admin did what the Rauner admin could not. He turned the financial ship of Illinois around and out us on the path of recovery. He did it without taxes going off the rails and without decimating social services.
This is the start, but it is a good one and one that the spelunkers here said would not happen in their lust to go all Kansas on everyone.
This was good for business.
Bravo Mendoza and Pritzker.
- City Zen - Wednesday, Mar 30, 22 @ 10:33 am:
Told ya we didn’t need the fair tax.
- Strategy Geek - Wednesday, Mar 30, 22 @ 10:36 am:
== dental insurance for SURS and SERS ==
@DuPage, The financial package the General Assembly sent to Gov. Pritzker last week included $898 million appropriation to cover old Group Health bills that had been unappropriated so those old bills should make their way to the Comptroller’s office once that’s signed.
- RNUG - Wednesday, Mar 30, 22 @ 10:36 am:
Mendoza deserves lots of praise for what has been accomplished.
However, having seen the various methods of juggling numbers, I do have one question I didn’t see addressed. And it’s an issue she has very little control over. Do we know what amount of time the vouchers are spending in the various agencies before the Comptroller sees them? Is that number down, the same, or up?
- City Zen - Wednesday, Mar 30, 22 @ 10:45 am:
==Between then and January 2020, $2.3 billion was borrowed==
What happened to the $6 billion in bond proceeds from November 2017? It’s clearly identified on the Comptroller’s website.
- Birds on the Bat - Wednesday, Mar 30, 22 @ 10:45 am:
RUNG
A few years ago, agencies were required to begin filing a monthly debt transparency report, which should give an indication of payments being held by individual agencies. It’s available on the IOC website.
- DuPage - Wednesday, Mar 30, 22 @ 10:54 am:
@- Anotheretiree - Wednesday, Mar 30, 22 @ 10:25 am:
==Dupage= My last unreimbursed Dental visit was 3.5 months ago. Prior to early 2000’s, I would get a check before the next 6 month visit. Things began to deteriorate around Blago times. Been good since Mendoza/Pritzker. How old is your oldest bill ?===
A couple months ago they paid the oldest one, from summer of 2020. I have some from winter of 2020 not yet paid. Delta says it’s all approved but they can’t pay it until the state pays them.
- Perrid - Wednesday, Mar 30, 22 @ 11:04 am:
TheInvisibleNan, I do t see how it can be true that the percentage of the budget taken by pensions goes down by the early 2030s, the ramp is set to start really hiking then because our legislators keep kicking the can, or at least have kicked it. Less so the last few years but a lot of pain ahead https://capitolfax.com/2022/01/13/illinois-reaches-funding-milestone-with-its-second-largest-pension-fund/
- Anotheretiree - Wednesday, Mar 30, 22 @ 11:10 am:
-Dupage- I can’t explain why Delta Dental is more current to me directly than to a Dentist.
- thoughts matter - Wednesday, Mar 30, 22 @ 11:19 am:
Perrid
the remark about the pension issue improving is about the fact that more and more active employees are Tier 2 pension qualified.Tier 1 numbers of employees and retirees are basically fixed and reduces as our elderly die. Sometime in 2023, over half the active employees will be Tier 2. Tier 2 pensions are capped at the social security cap and have a lower annual increase than Tier 1. This will cause the overall future pension liability amount to start falling. That will reduce the infundre liability amount. RNUG can explain it better.
- thoughts matter - Wednesday, Mar 30, 22 @ 11:21 am:
That made up word is supposed to be unfunded
- Oswego Willy - Wednesday, Mar 30, 22 @ 11:29 am:
=== Told ya we didn’t need the fair tax.===
Is that you Ken Griffin?
Illinois millionaires rejoice, lol
To the post,
I’m coming at this a bit different.
The fiscal aspects, and numbers are exactly as they are as numbers don’t lie, and the timeframe monies are paying our bills, that’s what it is, disputing those real things is an odd take.
This… this is ball game
===The bill backlog is now “accounts payable”===
This. This is how you frame the politics around the actual.
“Results? Well, let’s talk results…”
When policy can change a political narrative and do so with a new, “better”, label, that’s winning the argument.
For me, that’s how a message, and message control, allows the incumbent, any incumbent, to play offense where usually an incumbent is playing defense to “backlogs”.
Big props to the messaging aspects here. I’m impressed to that aspect, and there rebranding to allow an offensive front. That’s top shelf work.
- Pundent - Wednesday, Mar 30, 22 @ 11:55 am:
It seems that we’ve been able to reverse some of the damage done by Ken Griffin Inc. But he’s just chomping at the bit to give it another shot.
- DuPage - Wednesday, Mar 30, 22 @ 12:32 pm:
@- Anotheretiree - Wednesday, Mar 30, 22 @ 11:10 am:
===-Dupage- I can’t explain why Delta Dental is more current to me directly than to a Dentist.===
It is not caused by Delta, it is caused by the state being late in paying Delta.
Each of the 5 state retirement systems are paid in separate appropriations bills. Some other retirement systems (IMRF) are paid up and Delta pays those bills right away.
- Lurker - Wednesday, Mar 30, 22 @ 12:59 pm:
RNUG, the Comptroller has total control for how long we hold onto vouchers. They are sent (virtually) immediately unless the Comptroller says to hold them, which was the directive under Rauner and then for a period after until everyone could caught up. No Agency should be holding them now ad a normal course of business. Further, if any are being held, a report goes to the Comptroller with a brief explanation of the exception.
- Lurker - Wednesday, Mar 30, 22 @ 1:04 pm:
I should have included this tidbit too.
These reports were not created for better gov’t. Instead, it was so Rauners investing friends knew which ones to buy at 90 cents to the dollar, the amount they could buy and the length of time on the vouchers so they could maximize their profits.
- Abdon - Wednesday, Mar 30, 22 @ 3:02 pm:
Lurker’s information appears a bit dated. The reason for Comptroller Mendoza’s landmark Debt Transparency Act was to stop agencies/governors sitting on bills. Agencies now have to file monthly reports with the Comptroller’s office detailing whether they are sitting on bills, how old those bills are and whether there is appropriation for them. Since the House voted unanimously in 2017 to pass the Mendoza’s DTA over Rauner’s veto, the transparency had the desired effect and agencies tend not to sit on bills anymore. Can’t speak to whether previous administrations allowed previous comptrollers any “control” over agencies holding onto vouchers or whether Rauner’s administration tipped his “investing friends” which bills were being held back to bid on in pre-DTA times as Lurker alleges.
- TheInvisibleMan - Wednesday, Mar 30, 22 @ 5:02 pm:
@Perrid
That link does help to show what I’m saying, if only indirectly.
As to the total paid, each pension step becomes a smaller percentage increase of the total budget amount from the last step level.
By the early 2030s the increase in funding is lower than the expected increases to the total state budget from an assumed rate of inflation. The inflation of today actually helps bring this day even closer.
It’s not a point where the problem is completely solved, just a point where the problem becomes more easily manageable each year afterward instead of more burdensome.
I’m just a 2nd derivative kinda guy.