Deadbeat State: Ill. Owes Billions In Unpaid Bills

share: digg facebook twitter (AP) — Drowning in deficits, Illinois has turned to a deliberate policy of not paying billions of dollars in bills for months at a time, creating a cycle of hardship and sacrifice for residents and businesses helping the state carry out some of the most important government tasks. Once intended as a stop-gap, the months-long delay in paying bills has now become a regular part of the state's budget management, forcing businesses and charity groups to borrow money, cut jobs and services and take on personal debt. Year after year, Illinois builds its budget on the assumption that it will pay its bills months late — essentially borrowing money from businesses and nonprofits that have little choice but to suffer the financial hardship. The delays have prompted relatively little public outcry, perhaps because so much attention has been focused on other budget battles or there is no one politician or agency to blame. "God, how much more can our people take?" said Comptroller Judy Baar Topinka, a veteran politician responsible for trying to pay a seemingly infinite stack of bills with the finite amount of money approved by legislators and the governor. Blagojevich's replacement, Democrat Pat Quinn, raised income taxes and trimmed spending, but that money was gobbled up by other needs, primarily rising pension costs. Lawmakers of both parties rejected Quinn's proposal to borrow money so the state can pay its overdue bills, although he says he'll try again when lawmakers meet later this month. [...] Illinois has turned businesses, charities and local governments into unwilling short-term lenders, using their money to operate government and disguise the depth of the state's financial problems. The Illinois governor and comptroller each say the other makes the final decision on payments, and documents show a letter of support from a legislator — Republican or Democrat — can often shake loose money for vendors. [...] many Illinois groups have maxed out their lines of credit and still don't know when state money will start flowing smoothly again or how much to count on as they plan their financial year.

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