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Failure to pay bills on time has cost Illinois nearly a billion dollars

Over the past six years, late payments have cost the state of Illinois close to a billion dollars.

Over the past six years, late payments have cost the state of Illinois close to a billion dollars.

"What a waste. There are so many programs, good programs in the state, that need funding," said Laurence Msall, president of the Civic Federation. "To have spent almost a billion dollars in late penalties is basically just fiscal mismanagement."

The Civic Federation is a Chicago-based, government watchdog group. According to their report, Illinois has spent more than $900 million on penalties for not paying its bills on time over the past six years.

Msall says the problem actually began long before this year's budget impasse. When the recession hit in 2007, other states cut spending or raised taxes.

Failure to pay bills on time has cost Illinois nearly a billion dollars

The problems have compounded, with the state's backlog of unpaid bills expected to reach $9.3 billion by the end of the current fiscal year. The majority of the payments are owed to state health insurance vendors.

However, state legislators say solving the problem won't be easy.

"It's certainly unfortunate. I think if we would have been able to sign a budget last year, we would have been saving billions of dollars, instead of having the consent decrees that have been agreed upon in court," said Rep. Mike Smiddy, D-Hillsdale.

Other lawmakers acknowledge that Illinois has a precedent of not paying its bills on time -- even with a budget.

"Well, I think that's where the governors come in and why he was elected. He said we're not going to keep kicking the can down the road, we're gonna change the way we do business," said Sen. Neil Anderson, R-Rock Island.

In Anderson's Springfield office, there are pictures of his family. The freshman senator says those reminders help him keep things in perspective.

"That's the frustrating part -- you've got career guys that have been down here for 40-plus years, and they don't... the reality of having to budget goes away. Because they have a blank check from the taxpayers, and they forget that those taxpayers are the ones paying their salary," said Anderson.

And while the state's bills continue to pile up, most Illinois taxpayers continue to pay their own.

"Apparently there are no consequences for them, you know?" said Erie, Illinois, mom Brooke Berk. "We will go hungry or get evicted. We have consequences to it. They must not have any."

The Civic Federation says the General Assembly's first step should be to stop spending more than it takes in. Msall also said that the longer Illinois goes without a budget, the more expensive an eventual solution will be.

 

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