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* AP…
Officials say more than 800 private companies doing work for the Department of Human Services haven’t been paid because of the budget stalemate.
Human Services Secretary James Dimas told a Senate appropriations committee Wednesday the agency owes about $168 million in overdue bills since July 1 — when the budget should have taken effect.
Yep. We’re so much more pro-business now right here in good ol’ Illinois.
posted by Rich Miller
Thursday, Mar 17, 16 @ 9:22 am
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I see November as the “Referendum on Rauner”.
Bills were paid for “… the last 40 Years!… ”
Yeah… November is going to be a “Referendum on Rauner” and those “hanging in there” with the governor may again be very suprised how vote totals se to be… “unfavorable”.
When you don’t get paid when you’re suppose to, how can you “encourage” this… “New Status Quo”?
Yep. “Referendum on Rauner”, and people… people being crushed by Rauner… will “Vote Accordingly”.
March 15th proved that. Right? Exactly right.
Comment by Oswego Willy Thursday, Mar 17, 16 @ 9:27 am
lets not forget Rauner made a lot of money w/ a national provider grp that bought up nursing homes to make a national program. Rauner has been pushing for small contractors to be replaced by national providers…. so we support buisness, just not local small business only large grps w/ poor service.
Comment by Ghost Thursday, Mar 17, 16 @ 9:28 am
Does anyone know where I can get one of those “Rauner Fails” bumper stickers?
Comment by Beaner Thursday, Mar 17, 16 @ 9:29 am
Maybe they can get paid with Raunerbucks. Raunerbucks aren’t worth anything, but they certainly give the uneducated the idea that they are valuable. Just like their namesake.
Comment by Norseman Thursday, Mar 17, 16 @ 9:30 am
Perhaps the businesses should unify, unionize and collectively bargin for the right to be paid?
Comment by Tony Thursday, Mar 17, 16 @ 9:32 am
Is this another debt the Governor has no intention of paying? That’s the question I would ask Dimas.
Comment by Casual observer Thursday, Mar 17, 16 @ 9:32 am
>Perhaps the businesses should unify, unionize and collectively bargin for the right to be paid?
They are, via the Chamber, manufacturing, and other trade groups that generally are supporting Rauner’s approach.
Comment by Earnest Thursday, Mar 17, 16 @ 9:33 am
The story that dollar amounts aren’t capturing is the work that’s not being undertaken by contractors because they know they won’t be paid. I think that will have a more long term effect on the economy than the non-payment issue.
Comment by Jon Thursday, Mar 17, 16 @ 9:34 am
The state has a good racket going on past due registration stickers though! Maybe the vendors owed money should adjust the past due interest rate on their bills and resubmit them….
Comment by Saluki Thursday, Mar 17, 16 @ 9:37 am
Every agency has a stack of unpaid bills waiting to be paid and many of those unpaid bills are for businesses in Illinois.
Comment by Demoralized Thursday, Mar 17, 16 @ 9:37 am
Dimas told Senate Approp. members he would like to “make whole” human services providers if, and when a budget is passed. DHS is offering to provide letters to banks on behalf of providers who are not being paid and are near collapse.
Have also heard banks are starting to tell human service providers they can’t extend them any more lines of credit as their auditors are telling them the risk is to great for the bank to assume.
Comment by Give Me A Break Thursday, Mar 17, 16 @ 9:41 am
==Maybe the vendors owed money should adjust the past due interest rate on their bills and resubmit them==
Vendors are only entitled to prompt pay interest in statute. That interest begins to accrue after 90 days. Vendors doing business with the state cannot charge their own interest rate or late fees. The state does not pay those.
Comment by Demoralized Thursday, Mar 17, 16 @ 9:42 am
=== Every agency has a stack of unpaid bills waiting to be paid and many of those unpaid bills are for businesses in Illinois. ===
Whenever I see the stories about folks who are fronting the state for services/goods, I can’t help but think that many will never see the money. It’s been way too easy for the Rauner administration to say, “put it on our tab.”
Yes, running the state on the cuff is the new Rauner status quo.
Comment by Norseman Thursday, Mar 17, 16 @ 9:44 am
I’d hate to ask whether there is any oversight on what those 800 companies even provide. Billions get dished out between DHS and DCFS in these contracts every year with little to no idea whether the value is worth the costs. Maybe this is a way to weed out the less valuable contracts? Painful way to do it though.
Comment by JustRight Thursday, Mar 17, 16 @ 9:48 am
Tuesday’s results have exposed Rauner as a loser. Expect him to have a rotten 2016.
He is damaged political goods and the longer he makes Illinoisans suffer for his selfish political gains, the more damaging November will be for the GOP.
Comment by VanillaMan Thursday, Mar 17, 16 @ 9:49 am
Vendors are selling their State Accounts Receivable to their bankers at 85 cents on the dollar. So the State pays one percent a month, or 12 percent a year on an asset purchased in distress at a 15% discount. Can you say 30% ROI? Planning to fail strategy is a big win for Wine Clubs bankers.
Comment by Beaner Thursday, Mar 17, 16 @ 9:50 am
This is all part of the plan. It’s the LBO model. AKA leveraged buyout. Cause as much pain possible then buy pennies on the dollar when the other side folds.
Comment by Chicago Answer Thursday, Mar 17, 16 @ 9:52 am
Rauner predicted “short-term pain” but it is looking more like long-term pain every day. With no budget resolution in sight is it possible there is never a budget agreement while he is governor?
Comment by fed up Thursday, Mar 17, 16 @ 10:02 am
Just Right
Really? I guess you’re one of this guys who thinks that eliminating waste and fraud alone will balance the budget. This will weed them out all right! Right out of business or doing business with the state. Clueless.
Comment by Old and In the Way Thursday, Mar 17, 16 @ 10:02 am
Rauner was a bustout king in the private sector. He said he was going to bring his business know-how to government.
That’s one truthful statement he made during the campaign.
And every GOP GA member, the Chamber of Commerce, the Illinois NFIB, and the Tribbie edit board have signed on 100% support to not paying bills and not honoring contracts.
The Hang in There Hallelujah Chorus. That’s what passes for fiscally responsible, pro-business, conservative Illinois Republicanism these days.
Crain’s edit board hasn’t drank the kool-aid. They’ve been calling the governor out on his snake oil since last fall. They’re real business people, not reactionary ideologues.
Comment by wordslinger Thursday, Mar 17, 16 @ 10:03 am
Just Right: Not saying they are all “pure as the driven snow”, but majority of those owed money by DHS are front line, direct service providers at the community level. Those are the Substance Abuse and Mental Health providers that keep people out of jails and hospitals and state facilities which are the absolute most expensive method of care.
And they are the same providers who picked up services when the GA, led by Pate and Lee said community providers were the best option for care and the state needed to get out of the human service business.
Comment by Give Me A Break Thursday, Mar 17, 16 @ 10:06 am
Lesson: comm college pres asked if they would get full retro payments when budget passed. Rauner said, “dont count on it”.
Just right–you think anyone can send dhs a bill and they will pay it? Services require contracts w standards. T.here are mistakes, but its not an open cookie jar.
Comment by Langhorne Thursday, Mar 17, 16 @ 10:08 am
Illinois is notorious for paying slow especially during poor economic times but I suspect that this is much worse than in the past. Is there a measure or do we know how this new information compares to past practice of slow payment by the state?
Comment by JS Mill Thursday, Mar 17, 16 @ 10:25 am
=== Beaner - Thursday, Mar 17, 16 @ 9:50 am:
Vendors are selling their State Accounts Receivable to their bankers at 85 cents on the dollar===
You obviously do not know how the “Vendor Payment Program” Works
1. Vendors are paid 90% of all outstanding invoices over 90 days old in exchange for the 1% fee they were getting paid on those outstanding balances.
2. The remaining 10% will be paid to the vendor from the banking organization once the banking organization is paid in full for those said invoices…
Is this cut and dry? NO! not every vendor will be accepted… We have had many of our vendors turned down because they want 100 - $1000.00 invoices not 1000 - $10.00 invoices… this has led to many of our vendors cutting the state off for automobile parts…
Do I blame them? NO!
All the vendors should cut off the state and then maybe some would start to take notice that something needs to be done… no GAS, no PARTS, no services….
They say the State runs on Wheels…. turn off the wheels and lets see what happens then.
Comment by Allen D Thursday, Mar 17, 16 @ 10:28 am
JS Mill: Yes, Illinois has always been slow to pay. However, it’s not a question of slow, hundreds of providers have been providing services since July 1 without a contract out their dedication to their mission and clients. Imagine trying to run an operation without seeing a dime for the services you are providing.
Comment by Give Me A Break Thursday, Mar 17, 16 @ 10:35 am
Acquaintance of mine said they recently got paid their premium from last year’s Illinois State Fair! So some bills from the fair are finally being paid. Wonder if the Butter Cow maker got paid?
Comment by Nearly Normal Thursday, Mar 17, 16 @ 10:35 am
===without a contract===
They have state contracts.
Comment by Rich Miller Thursday, Mar 17, 16 @ 10:36 am
Rich: You are correct, some have contracts, but without any obligated numbers in those contracts.
Comment by Give Me A Break Thursday, Mar 17, 16 @ 10:44 am
I wonder how many of these 800 private companies belong to the state Chamber or to the NFIB? Are those members satisfied with their organizations right now?
Comment by anon Thursday, Mar 17, 16 @ 10:51 am
I’d like to see a story about the health care providers that are not being paid. Do you know how frustrating it is to pay our health premiums and yet, every month, we receive billing notices from doctors and providers? I understand that any provider who contracts with the State health insurance program cannot bill or send accounts to collections, but just the same, this should be reported. Of course, the bigger providers just wait out the payment, knowing that 9% is better than any investment at this time. Still, I’m wondering how many providers will re-new their contracts for fiscal 2017.
Comment by No Raise Thursday, Mar 17, 16 @ 11:00 am
on a side note, under the state finance act a debt incurred in a fiscal year can only be paid w/ that fiscal years approp. texhnically if there is no approp for this fiscal year the. unpaid bills incurred this year can not be paid. no budget means no lapsed funds or lapse period…..
They are going to need to legislate all this debt into the mext fiscal year it appears
Comment by Ghost Thursday, Mar 17, 16 @ 11:25 am
Whether you approve or disapprove of many of these tax supported agencies/individuals they are owed their money as promised by the state.
Being a deadbeat is not the image i would want to cultivate if I were Rauner. Whatever happened tot he conservative premise of paying your bills and on time.
If Rauner wants to reduce or eliminate a number of programs that is a different issue- but pay what you owe.
Comment by Federalist Thursday, Mar 17, 16 @ 12:00 pm
That is why we have the “COURT OF CLAIMS”, many of the vendors that provide parts and services to all the state garages end up at the court of claims for the previous year to get invoices paid usually from lost invoice that never were put in the system to be paid, but now no invoice has been paid and it looks like no budget until into next fiscal year.
Comment by Allen D Thursday, Mar 17, 16 @ 12:09 pm
I can tell you the results of non payment of private social services. Things like a woman coming into my office with huge mens shoes that she was wearing like slippers with the heal cut out. I have to give her credit it was a pretty good idea. Or the steady stream of homeless folks coming in, many with mental issues. Then there are those who are “having eye problems” (ie. they are illiterate and need help filling out the app). It’s always been bad here but I’ve seen a large increase in the severity.
Comment by Honeybear Thursday, Mar 17, 16 @ 2:29 pm
To All under the Dome (or that leaky piece of skeet aka the JRT) Sit Down, Cut a Deal, Pass a Budget, Pay the Bills…. Repeat
Comment by the Cardinal Thursday, Mar 17, 16 @ 8:31 pm