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Bad budget news

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Illinois

The spring session will likely be long and mean. And the worse the budget situation, the longer and meaner the session will be.

The state’s backlog of Medicaid payments to vendors such as pharmacies, nursing homes and hospitals has reached $1 billion, just six months after the state borrowed $850 million to clear the back payments. [Snip]

The $1 billion backlog only adds to a bleak financial situation the state is staring at for the upcoming fiscal year. This week a Cook County judge ruled that a business fee hike in 2003 was unconstitutional, putting in question $18 million that was raised by the increased fee and perhaps many millions more in similar fee hikes. And a few weeks ago, the Illinois Economic and Fiscal Commission - the economic forecasting branch of the legislature - reported the state would garner only $325 million in new revenue for the fiscal year set to begin July 1, 2005. Also, the state’s five pension programs need a $600 million infusion next fiscal year.

posted by Rich Miller
Thursday, Dec 2, 04 @ 3:50 pm

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