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* Keep in mind that January 1st is merely the half-way point of Fiscal Year 2016…
Munger estimates bill backlog will hit $8.5 billion by Jan 1. More than double July figure. #twill
— John Gregory (@johngregoryx) September 9, 2015
If there is no budget in place & our spending trajectory continues, we will enter the New Year owing an est. $8.5 bil. in unpaid bills
— Leslie Munger (@LeslieMungerIL) September 9, 2015
*** UPDATE *** Press release with emphasis added…
Comptroller Leslie Geissler Munger announced Wednesday that if the state continues its current rate of spending without a balanced budget, Illinois’ backlog of unpaid bills to schools, hospitals, businesses, social services and other vendors will exceed $8.5 billion by the end of the calendar year.
Munger said court orders, consent decrees, and statutory continuing appropriations (including debt service, pension payments, tax refunds and lawmaker salaries) are funding 90 percent of the state’s bills even though the General Assembly and Governor have been deadlocked on a budget since July 1. The problem is, the spending is based on FY 15 levels while revenue is based on FY 16 levels, which is running considerably lower due to the sunset of the temporary tax increase in January.
The unpaid bill estimate does not include payments for higher education, employee-retiree health insurance, student MAP grants, some Lottery winners, commercial spending, and other bills that will not be processed until a budget in place. Those expenses could account for an additional $4.3 billion in spending annually.
“Just over two months ago, I stood before you to warn that if the General Assembly and Governor were unable to pass a balanced budget, there would be severe consequences for the state,” Munger said. “Today I’m here to say that those consequences have come to pass and the situation will become more dire the longer we try to fund state services without a budget.”
At the end of August, the state’s unpaid bills to schools, hospitals, businesses, social service agencies and others totaled about $5.5 billion. That number has grown to $6 billion today. If there is no budget in place and the state’s spending trajectory continues, it will enter the New Year on January 1, 2016 owing an estimated $8.5 billion in unpaid bills. As the backlog grows, the state’s cash flow gets tighter and payments to nonprofits and other state vendors for provided services face further delays, Munger said.
Munger will continue to prioritize payments to nonprofits that serve children, the elderly, people with developmental or intellectual disabilities, and other vulnerable residents. They depend heavily on state funding and provide critical services at a lower cost than it would cost the state, she said.
“We will continue to do everything in our power to keep the state and our human service organizations afloat, but to be clear – our office performs triage every day simply to ensure the State of Illinois lives up to its core commitments,” Munger said. “For the sake of our families, businesses and organizations, it is time for members of the General Assembly to sit down with the Governor to find common ground and pass a balanced budget so we can fund our critical priorities.”
posted by Rich Miller
Wednesday, Sep 9, 15 @ 11:23 am
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What a turnaround.
Comment by Wordslinger Wednesday, Sep 9, 15 @ 11:25 am
The debate we’re having and the media keep missing the point. Every day that goes by without a solution digs us deeper into a hole. Even if we put the tax rate back up Jan 1 (a dubious proposition), we’re building a mountain of debt that will be almost impossible to overcome.
Comment by Chicago Cynic Wednesday, Sep 9, 15 @ 11:26 am
Would it be possible (legal) to implement an income tax hike and make it retroactive to January 1, 2015? Because if not, we’re already in deep yogurt and each passing day makes it worse.
Comment by 47th Ward Wednesday, Sep 9, 15 @ 11:30 am
Rauner’s Agencies have no money.
Under Rauner’s leadership, the debt owed by the state has escalated.
Rauner’s social service agenda is written… on IOUs.
“Bruce Rauner has failed”, but Illinois is failing because he chooses it to.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 11:32 am
What was the bill backlog when the income tax increase expired?
Comment by Almost the Weekend Wednesday, Sep 9, 15 @ 11:33 am
Almost the weekend, it was about $4 billion. Down significantly.
Comment by Chicago Cynic Wednesday, Sep 9, 15 @ 11:36 am
He sure is “Shaking Springfield”. As in shaking it down for some unknown, and illogical goal.
Rauner is an abject failure. Certainly will be going down as the worst 1st year in the history of state governance.
Sure wonder what his voters think about his ‘runaground agenda’ now.
Comment by How Ironic Wednesday, Sep 9, 15 @ 11:38 am
I take it that’s $8.5B even with zero funding for the things not yet funded?
What a disaster. The Gov-elect should have asked the GA to extend the previous tax rates, at least until he could find ways of saving enough money to lower them (no chance, I suspect), and the GA should have done it. To allow the tax rates to go down with no plans in place (i.e. bills passed) for how to manage without the revenue—well to call it irresponsible is too weak. A disaster.
Comment by UIC Guy Wednesday, Sep 9, 15 @ 11:40 am
The unions fault, obviously.
Comment by From the 'Dale to HP Wednesday, Sep 9, 15 @ 11:43 am
===I take it that’s $8.5B even with zero funding for the things not yet funded? ====
I imagine when / if they appropriate money for higher ed that will add a billion or so to the pile.
Comment by Been There Wednesday, Sep 9, 15 @ 11:43 am
Why have an Illinois state constitution when elected officials don’t adhere to it? It says we are supposed to balance the budget. This is a problem. In a better world politicians wouldn’t be allowed to issue debt. That’s probably the only way to put them on a lease.
Comment by Steve Wednesday, Sep 9, 15 @ 11:46 am
Does anyone in the administration have tickets for the upcoming Cubs/Cards series at Wrigley? Tne way things are going, you could probably eliminate the deficit by peddling them on StubHub.
Last September, I got Cubs tickets for $2 on StubHub.
Comment by Wordslinger Wednesday, Sep 9, 15 @ 11:46 am
==I take it that’s $8.5B even with zero funding for the things not yet funded?==
Wouldn’t assume anything unless Munger outlines how they made the forecast.
Comment by walker Wednesday, Sep 9, 15 @ 11:46 am
This is on Dunkin and Drury too. It must be.
Comment by Lincoln Lad Wednesday, Sep 9, 15 @ 11:47 am
This:
http://danzigercartoons.com/wp-content/uploads/2010/10/danzcolor4547.jpg
Comment by Hamlet's Ghost Wednesday, Sep 9, 15 @ 11:47 am
Let’s make something clear - the lack of budget does not impact the cash flow.
Money going out the door for FY16 comes from three main sources: continuing appropriations, bills signed by Rauner for education and federal funds, and consent decrees spending agreed to by the administration. If you want to change spending based on consent decrees, you need to go to court. So far, the Rauner and Munger administrations have gone along with all of the anticipated spending tied up in consent decrees.
Comment by to be clear Wednesday, Sep 9, 15 @ 11:48 am
Waiting for the IPI press release blaming Madigan in 3…2…1…
Comment by Bluefish Wednesday, Sep 9, 15 @ 11:50 am
= 47th Ward - Wednesday, Sep 9, 15 @ 11:30 am:
Would it be possible (legal) to implement an income tax hike and make it retroactive to January 1, 2015? =
I believe the last tax increase was retroactive.
Comment by anon Wednesday, Sep 9, 15 @ 11:50 am
===Let’s make something clear - the lack of budget does not impact the cash flow.===
Until the money runs out.
Comment by 47th Ward Wednesday, Sep 9, 15 @ 11:50 am
I dunno. Christmas isn’t that far off. I don’t mean for our political masters-it’s always Christmas for them. I mean for us regular folks starting to draw up our Christmas lists and plan our Christmas parties. And our political masters will impose a retroactive tax increase to accompany the festivities? So we must buy fewer presents for the kids? I think not.
January or February.
Comment by Cassandra Wednesday, Sep 9, 15 @ 11:55 am
A “starve the beast” believer is in control.
I believe Rauner desires fiscal failure as a means to justify more extreme social spending cuts and the privatization or elimination of more state funded services in the future.
Rauner has made it clear that he doesn’t like Illinois political leaders, himself — of course — excluded.
Comment by Katich Walker, Jr. Wednesday, Sep 9, 15 @ 11:58 am
Dems pass an unbalanced budget of $4 billion. Rauner’s impasse lets him preside over an $8.5 billion shortfall. Sounds like an improvement to me, not.
Comment by Norseman Wednesday, Sep 9, 15 @ 11:59 am
Retroactivity is legal, but it would be political suicide at this point. No one votes for a tax increase while petitions are on the street, so that puts the next available date sometime in December. Then, if they do that, April 15 is gonna be a hurt for a whole lot of folks who likely wouldn’t forget by November.
I think we have to manage the back half of FY ‘15 and the front half of FY ‘16 with what’s there…and that means a big ol’ backlog.
Comment by Joe Bidenopolous Wednesday, Sep 9, 15 @ 12:00 pm
An Illinois tradition. If Rauner exceeds Quinn’s $8.8 bill record, is that ==shaking up Springfield==?
@Almost the Weekend - Quinn, Cullerton and Madigan’s final budget planned on increasing the bill backlog to $6.4 bill this year. ==The current Illinois state budget is underfunded, relies on borrowing and will boost the state’s stack of unpaid bills to an estimated $6.4 billion==
http://www.reuters.com/article/2014/10/09/usa-illinois-budget-idUSL2N0S41EL20141009
Comment by Formerly Known As... Wednesday, Sep 9, 15 @ 12:01 pm
==I believe the last tax increase was retroactive.==
But making it retroactive by nine or ten months (or more), that’s a different proposition. It might be legal, but it would be extremely unpopular: 12.5% of your gross monthly pay deducted from your Nov. pay check. People would to notice that. Never happen.
Comment by UIC Guy Wednesday, Sep 9, 15 @ 12:01 pm
Dear Munger Press Shop,
You’ve realky upped your game from the August 26th “close” of that release to the release here in its entirety.
Well done.
===“We will continue to do everything in our power to keep the state and our human service organizations afloat, but to be clear – our office performs triage every day simply to ensure the State of Illinois lives up to its core commitments,” Munger said. “For the sake of our families, businesses and organizations, it is time for members of the General Assembly to sit down with the Governor to find common ground and pass a balanced budget so we can fund our critical priorities.”===
That is Restraunt-Quality.
OW
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 12:03 pm
=== 47th Ward - Wednesday, Sep 9, 15 @ 11:30 am:
Would it be possible (legal) to implement an income tax hike and make it retroactive to January 1, 2015? ===
It’s my understanding that you can. However, given that we’re in September, a retroactive increase will be a heck of a Christmas season present - a whopper of a tax bill.
Comment by Norseman Wednesday, Sep 9, 15 @ 12:06 pm
As Homer would say, Doh!
Sounds like Leslie is the only elected official doing any work, what with the daily triage.
Comment by Sir Reel Wednesday, Sep 9, 15 @ 12:06 pm
Excellent update Rich. Thank you.
It is bad indeed.
Comment by walker Wednesday, Sep 9, 15 @ 12:07 pm
Interesting that Munger’s closing quote lacks any mention of the need to tie “reform” to resolution of the budget:
“For the sake of our families, businesses and organizations, it is time for members of the General Assembly to sit down with the Governor to find common ground and pass a balanced budget so we can fund our critical priorities.”
In her past messaging - as recently as her column published in Champaign on Sunday - she has appeared to very carefully and deliberately track with Rauner’s need-for-reform message. This is from the Sunday column:
“But it is incumbent on the General Assembly and governor to put our state on a better trajectory by passing a balanced budget with necessary reforms that will get our economy growing and fund critical services.”
Comment by Louis Capricious Wednesday, Sep 9, 15 @ 12:10 pm
@Almost the Weekend - from GOMB, the bill backlog in January 2015 was $5.994 bill.
Comment by Formerly Known As... Wednesday, Sep 9, 15 @ 12:14 pm
- Louis Capricious -
One could make an argument that…
===…find common ground…===
… can really cover… a great many… things… including reforms.
That’s why its Restraunt-Quality, and far better than the August 26th “close”
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 12:18 pm
Rauner claimed to the SJR that he couldn’t cut the budget because of the courts. What spin, he could have crafted a budget using his veto authority. Is he overly political, clueless or incompetent. The latter I believe more and more.
Comment by LIberty Wednesday, Sep 9, 15 @ 12:24 pm
No argument, Willy. But as we both know, folks in this business spend an enormous amount of time, energy and resources (arguably too much) analyzing message and the import/implications of individual words.
A subtle shift in direction or position on her part … ? No clue. But it’s worth noting.
Comment by Louis Capricious Wednesday, Sep 9, 15 @ 12:27 pm
Everyone is quick to blame this 100% on the Governor but the GA is not blameless either, they are a thick a wall as he is. He has an agenda that he believes will fix ILLINOIS, the GA has a 30+ year agenda of do it our way because that is what we said agenda… neither may be totally right, but both are to blame.
Comment by Allen D Wednesday, Sep 9, 15 @ 12:31 pm
===the GA has a 30+ year agenda of do it our way because that is what we said agenda===
So…
Thompson, Edgar, and Geo. Ryan… they just agreed? That’s fun.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 12:34 pm
– He has an agenda….–
He also has a repsonsibility to do his job, which he is refusing to do in service of his “agenda.”
Spin yourself silly. This is willful recklessness and a complete disaster that gets worse, and will be harder to fix, every single day.
Comment by Wordslinger Wednesday, Sep 9, 15 @ 12:37 pm
- Louis Capricious -
I’ve noted. I’m impressed.
That and about $2.75 will get me a cup of coffee, but I’ve noted. It’s so much better, and it’s rings do true to the duties of the Office, fighting for Illinoisans, and separates Munger in the political farther away from Rauner.
I noted.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 12:48 pm
== Everyone is quick to blame this 100% on the Governor but the GA is not blameless either, they are a thick a wall as he is. He has an agenda that he believes will fix ILLINOIS, the GA has a 30+ year agenda of do it our way because that is what we said agenda… neither may be totally right, but both are to blame. ==
I’ll readily concur that both are to blame: Governor Rauner for proposing an unbalanced budget, the General Assembly for passing a different, but also unbalanced, budget.
The principal difference is that the Governor had the opportunity to adjust the GA’s budget to one more of his liking with his amendatory veto power. His decision to veto it in its entirety instead was to leverage his Turnaround Agenda. I won’t speak for anyone else, but that’s why *I* lay the bulk of the blame at his feet.
Comment by thunderspirit Wednesday, Sep 9, 15 @ 1:01 pm
How long will it take for the editorial boards to admit Quinn was right — you can not balance a budget $8.5B in the red without the income tax hike?
Comment by nona Wednesday, Sep 9, 15 @ 1:03 pm
Drop your anti-union, non- budgetary demands, governor. It’s that simple.
Comment by DHSJim Wednesday, Sep 9, 15 @ 1:14 pm
It will not Destroy IL except in your mind…. other states even operate very well as total Right to work states and have unions too, just not forced unions as to do the job…
Comment by Allen D Wednesday, Sep 9, 15 @ 1:27 pm
At DHSjim: Rauner can’t drop his non-budget demands. Those are why he ran for office: to stop paying decent wages to an organized workforce, privatize as much as possible, then pay than make sure payments of future bills are directed at his ideological brethren.
Comment by Kasich Walker, Jr. Wednesday, Sep 9, 15 @ 1:28 pm
@Allen D - Oh, woe to the people who receive benefits the union fought for but don’t want to pay for them. Feel free to write out a check to the state of Illinois for any pay you feel is excess.
Comment by Tournaround Agenda Wednesday, Sep 9, 15 @ 1:40 pm
I was wondering when this would happen:
http://www.chicagotribune.com/news/ct-lottery-lawsuit-met-20150909-story.html
State sued for not paying lottery prizes greater than $25k.
Comment by Huh? Wednesday, Sep 9, 15 @ 1:43 pm
Reality check boys and girls, not enough 1%’ers in Land of Lincoln to bail us out. Cuts are in order and the Gov and GA don’t have what it takes to agree on enough cuts. CPS and the Windy City gotta be cut loose so promises can be broken. Regrettably it has to come to this, but nobody, and I mean nobody needs a 3% COLA on a $225K annual pension. Heck, where I come from, that makes you a 1/4%er. Sorry ya’ll.
Comment by Blue dog dem Wednesday, Sep 9, 15 @ 1:45 pm
How does Leslie find time for tweeting in the triage area??? Who else is working triage?? Maybe she needs to shift in to a managed care model.
Comment by Flynn's mom Wednesday, Sep 9, 15 @ 1:47 pm
===…nobody needs a 3% COLA on a $225K annual pension.===
Please cite that pension. Thanks.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 1:49 pm
‘Dale to HP
==must be the unions fault==
????
Comment by confused Wednesday, Sep 9, 15 @ 2:02 pm
Revision::nobody, I mean nobody Needs to collect $2.6 million in pension in their lifetime and still need a 3% COLA. ( I think that qualifies as a 1%er).
Comment by Blue dog dem Wednesday, Sep 9, 15 @ 2:25 pm
=== That and about $2.75 will get me a cup of coffee ===
Amazing what counts as progress, or at least perceived progress, these days. Three cheers for baby steps in the right direction!
Comment by Louis Capricious Wednesday, Sep 9, 15 @ 2:25 pm
===…nobody needs a 3% COLA on a $225K annual pension.===
Do you think we live in a society in which money is given out on the basis of need? (’From each according to her/his abilities, to each according to her/his need.’ —K. Marx) It turns out we don’t. Money is given out on the basis of agreements (contracts): someone hires you to work and agrees to pay you a certain amount, and then you’re entitled to that amount.
Comment by UIC Guy Wednesday, Sep 9, 15 @ 2:27 pm
===Revision::nobody, I mean nobody Needs to collect $2.6 million in pension in their lifetime and still need a 3% COLA. ( I think that qualifies as a 1%er).===
So… What percentage of all pensioners are in that bracket?
Google is your friend.
So bitter.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 2:29 pm
LOL, Blue dog dem.
Comment by Norseman Wednesday, Sep 9, 15 @ 2:33 pm
It’s a shame that when you run out of money, something has to give. An it looks like the givers are leaving the state in droves. I don’t have the solution, I am a retired blue collar worker who doesn’t have a defined pension. An increase in income tax, or property tax, or sales tax, or sugar consumption tax hurts me tremendously.
Comment by Blue dog dem Wednesday, Sep 9, 15 @ 2:35 pm
It’s the GA responsibility to pass a budget and make sure it’s balanced. Rauner was right to veto. What we all should be demanding is for the GA to locked in the capital until they produce a new budget.
Comment by NeverPoliticallyCorrect Wednesday, Sep 9, 15 @ 2:36 pm
===Revision::nobody, I mean nobody Needs to collect $2.6 million in pension in their lifetime and still need a 3% COLA. ( I think that qualifies as a 1%er).===
I mean, help me out;
Is that $2.6 million over 9 years, but 10 years is ok…
If they worked 27 years it’s “fine” but 26 years, 9 months is just unacceptable…
Is there a constitutional clause I’m missing, like the “2.6 Million Clause” that absolves everyone if it’s below $2.59 million over that 10 year window, less the 26 years, 9 months service…
I get confused, so please, take your time.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 2:37 pm
- NeverPoliticallyCorrect -
Constitution, state of Illinois;
Article VIII, Section 2, (a).
Get back to us on that door locking business.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 2:39 pm
=== What we all should be demanding is for the GA to locked in the capital until they produce a new budget. ===
Sorry, but I don’t participate in felonies.
Comment by Rich Miller Wednesday, Sep 9, 15 @ 2:41 pm
===What we all should be demanding is for the GA to locked in the capital until they produce a new budget.===
And what? If white smoke bellows from the chimney we have a new budget? Dunno if that’s in the constitution either…
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 2:43 pm
We can stand behind the state constitution til the cows come home(that’s so.illinois talk).when we spend money faster than we can raise taxes, that’s eventually bankruptcy(that’s so. Illinois talk too).
Comment by Blue dog dem Wednesday, Sep 9, 15 @ 2:52 pm
- Blue dog dem -
Illinois as an entity can’t go bankrupt.
Ok, what else ya got?
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 2:54 pm
We’re not in this situation because the two sides can’t sit down and compromise on a budget. You have one side that won’t bargain on the budget until some non budget items are accepted (turnaround agenda). We need to increase our tax base, not reduce it. Mandated that thousands of workers be paid less money will reduce tax receipts, not grow them. It does increase the bottom line of businesses though if they can pay their workers less money. That is pretty much what this stalemate is all about, paying people less money, stripping workers of their rights so that big business can increase their profits.
Comment by The Dude Abides Wednesday, Sep 9, 15 @ 3:25 pm
===Amazing what counts as progress, or at least perceived progress, these days. Three cheers for baby steps in the right direction!===
I believe the Munger Crew and the Munger Staff will find the groove. The August 26th release compared to today’s? Huge. They know it because that Crew understands the politics at play by just governing within the parameters of the Office’s duties IS the better politics right now than releases with Rauner Agenda Points muddying the water.
There’s a different tenor. That’s good. It’s all there for them. The Munger Crew, its theirs to dictate the race.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 3:40 pm
CPS and the Windy City
Comment by blue dog dem Wednesday, Sep 9, 15 @ 4:20 pm
===CPS and the Windy City===
What about them? Chicago can’t go bankrupt, and what about CPS and property taxes…
You keep trying.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 4:33 pm
Chicago can’t go bankrupt……oh! That’s right,they have another casino on the way.
Comment by Blue dog dem Wednesday, Sep 9, 15 @ 5:29 pm
- Blue dog dem -,
You’re a troll. Lesson learned. This isn’t the Tribune.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 5:41 pm
-OW- it’s tough when real blue collar dems can see the light, and the 1%er liberal dems can’t. I worry about the party….more math classes and less humanities, or we’re doomed as a party.
Comment by Blue dog dem Wednesday, Sep 9, 15 @ 5:53 pm
- Blue dog dem -
You should join IllinoisGO… You’d fit in.
Comment by Oswego Willy Wednesday, Sep 9, 15 @ 6:16 pm
If we dont change our ways,were all gonna join the WisconsinGO.
Comment by blue dog dem Wednesday, Sep 9, 15 @ 6:59 pm
Pres. Rich trumka call gov walker a disgrace to America. Walker is at the bottom of the list of voters. Rauner is also a disgrace. To veto his way to bankruptcy to break the working families , the poor and children is typical republican and hopefully voter turn out will defeat this sickness in this country
Comment by Thomas stell Thursday, Sep 10, 15 @ 6:27 am