Thursday, July 19, 2012
Billions In Unpaid Obligations At End Of State Fiscal Year
When Fiscal Year 2012 ended on the last day of June, Illinois continued to face billions in unpaid bills. And according to Comptroller Judy Barr Topinka, the recently passed budget may not cover some costs through the end of the current fiscal year.
Topinka estimated that at the end of FY2012, the state had $7.5 billion to $8 billion in unpaid obligations, including bills, employee health care costs and unpaid corporate tax returns. That is an improvement over the same time last year, when the state had $8.5 billion in obligations it had not paid.
The stack of bills at the comptroller’s office at the end of June to be paid out of the General Revenue Fund was $3.656 billion, down from $3.798 billion last year. In addition to unpaid General Revenue bills, this year Illinois owed $830 million in bills to be paid out of education funds. Topinka estimates that about $3.5 billion worth of unpaid bills, predominantly Medicaid costs, have yet to be sent to her office. She said the state also has to pay back about $100 million to funds outside the General Revenue Fund from which Gov. Pat Quinn and the General Assembly have agreed to borrow in recent budget plans.
Topinka’s report contained little good news for those waiting on overdue payment from the state. “While Illinois has made gains by making its pension payments and addressing spending growth, there remains a long way to go. As a result, longstanding delays for providers of state services will continue into fiscal year 2013,” it says.
You can read Jamey's full report at: http://illinoisissuesblog.blogspot.com/2012/07/as-fiscal-year-ended-state-carried-over.html
In the pic: Comptroller Judy Barr Topinka