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 As part of Illinois’ new budget,
state lawmakers approved plans to start paying off a $14.3 billion backlog of
unpaid bills.
Budget negotiators originally said the plan would allow $8 billion of the
backlog to be paid off, but State Comptroller Susana Mendoza said that it would
be a success if $5 billion could be paid, according to Gatehouse Media Illinois.
To pay off the debt, the state plans to utilize some of the revenue expected to
come from the new 32 percent income tax hike, and will borrow up to $6 billion.
Currently, state revenues only allow Illinois to borrow roughly $3 billion, but
future revenue could be used to finance additional borrowing, according to
Gatehouse.
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The state also has
access to special accounts, now that Illinois has a budget, allowing
for $300 million to be moved out of dedicated state accounts. From
these special accounts, Illinois can borrow an additional $1.2
billion. Borrowed money must be repaid in two years.
But before any money can be borrowed, Gov. Bruce Rauner must sign
off. Gatehouse reported the comptroller’s office is waiting on a
response from the governor’s office to discuss the issue.
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