Illinois comptroller: Budget might face tough times

By Kurt Erickson | Wednesday, January 09, 2008

 SPRINGFIELD — A new report is raising red flags about the health of the state budget.

According to Illinois Comptroller Dan Hynes, the state ended the first half of the fiscal year with a record amount of unpaid bills.

In addition, the report notes that a looming economic slowdown “will create tremendous challenges” for lawmakers and the governor.

The report, which sounds alarm bells about the state’s financial situation at the midpoint of the fiscal year, comes as Illinois lawmakers return to action today.

Among the items that could be on the agenda is a spending bill that was altered by Gov. Rod Blagojevich on Friday.

Lawmakers must act on the governor’s changes in order for school districts across the state to get about $560 million in additional funds.

But, in his report, Hynes said approving the added school money will make it even tougher for the state to pay other bills.

“The next quarter will see continuing payment backlogs and delays as the pace of revenues will not address spending demands,” the report notes.

In all, the state’s backlog of unpaid bills was $1.7 billion on Dec. 31, up from $1.3 billion

a year ago.

Hynes said the average delay in paying bills is 34 days, up from 22 days last year. For many, the delays to vendors and contractors are much longer.

Despite the comptroller’s concern about approving the school funding measure, some lawmakers say the added cash is long past due.

“I remain cautiously optimistic that leaders in both the House and Senate will work together to ensure our schools finally get the money entitled to them,” Rep. Mike Bost, R-Murphysboro, said.

Kurt Erickson can be contacted at

(217) 789-0865 or kurt.erickson@lee.net.