IL Chips Away Unpaid Bills Down To $3.5 Billion From $17 Billion

Chicago IL

28 April, 2021

5:36 PM

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ILLINOIS— Four years ago, Illinois' unpaid bills racked up nearly $17 billion for the state. Now, the total is down to about $3.5 billion. State Comptroller Susana Mendoza announced the drop in a statement on Wednesday, saying the accomplishment is due in part to her office's daily management of cash flow in the state and the 2017 Debt Transparency Act. "This is a remarkable day that I have been working toward since I took office in December 2016 amid the budget impasse when the previous administration was paying nursing homes and hospice centers up to a year late and they let the backlog climb to $16.7 billion," Mendoza said in the statement. The remaining $3.5 billion is made up of money owed to other branches of government, group health insurance bills and invoices that haven't made it to the Office of the Comptroller for payment yet, according to the office. The backlog doesn't include the $3.6 billion the state borrowed from the Federal Reserve to pay rising medical bills during the pandemic. Any money that Illinois receives through the American Rescue Plan, the newest COVID-19 stimulus package, will have to first be used to chip away at that borrowing. Right now, the oldest commercial bill on the comptroller's desk is from this Monday. The shrinking backlog means the state can finally start to pay its bills as they come in. In private industry, a 30-day bill cycle is common. Mendoza said Illinois would have to get down to $3 billion in unpaid bills in order to reach that turnaround. While the lower debt is a good sign from Illinois, state bond rating and credit agencies will still have to judge Illinois' fiscal situation, which was rated poorly just last year. Mendoza continued to stress how crucial the 2022 budget would be to maintaining and hopefully improving the state's current position. "Responsible budget-making," she said, "directs the fate of the backlog as we continue making headway with our finances and show taxpayers and the credit rating agencies that we're serious about restoring Illinois' financial stability."