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…
