Illinois Has $4.5 Billion In Unpaid Bills, $1.75 Billion Due June 10 (Short Term Debt), Higher Taxes Looming?

Illinois' financial update by Distressed Volatility Public Finance (DVPF)

The April 2010 Illinois Comptroller Quarterly, by Illinois Comptroller Daniel Hynes, stated they had $4.496 Billion in unpaid bills and $1.75 Billion + interest that must be repaid on June 10. Below is part of the quarterly report (PDF here).  Read the articles below and also check out the daily cash balance chart comparing 2007-2010.  Higher taxes coming?


Through the first three quarters of fiscal year 2010, the state's cash flow position continued to deteriorate with the backlog of General Revenue Fund bills reaching historic levels. At the end of March, the volume of unpaid bills from the General Funds in the Comptroller's Office stood at $4.496 billion while at this time last year payables totaled $3.401 billion. Just as significantly, the state has had to prioritize critical payments such as debt service and other obligations vital to the operating of state programs such as General State Aid to Education. The state has also had to accelerate large Medicaid disbursements in order to continue qualifying for increased federal stimulus funding revenues. As a result, the backlog includes unpaid transfers and vouchers from the first quarter of the fiscal year and those delays have become increasingly problematic.

In March, the state made the first payment of $506 million towards $2.25 billion in short- term borrowing loans that were issued to address fiscal year 2009 bills. The remaining $1.75 billion plus interest must be repaid by June 10th of this year, further exacerbating cash flow issues for the remainder of the fiscal year."

General Revenue Fund Daily Cash Balances (2007-2010)

Other articles:

Illinois Budget Woes Come to a Boil - WSJ (link)
"Illinois lawmakers were in disarray Thursday as they groped for stopgap measures to address a $13 billion deficit equaling nearly half of the state's general-fund revenue." 

Illinois stuck in a ‘historic, epic’ budget crisis -  Chicago Tribune (link)
"Talk of major tax increases coupled with draconian spending cuts is building in Springfield"

Continued from...
Municipal Crisis Is Spreading, Updates on Distressed Munis | 2/2010
Illinois Insolvency, Chicago CRE Outlook, Warehouse Vacancies Hit 12.1% | 1/2010

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