Key payments could be at risk in Illinois cash crunch

The continuing budget impasse in Illinois means the state will delay its November pension contribution, state Comptroller Leslie Geissler Munger announced on Wednesday. The resulting cash shortage has caused the state’s unpaid bill backlog to swell to $6.9 billion this month, and will force the Comptroller’s Office to delay a $560 million monthly pension payment in November.

She continued, “The inability of Illinois public officials to reach consensus damages the credibility of the state and complicates funding for vital services”.

The state is making monthly payments on bonds, which are a top priority for the limited state dollars, according to Munger.

Cate Long explained that, “The state’s contribution to their pension fund can be delayed but it appears that Illinois legislators are unwilling to make the tough choice to either raise taxes or cut services”.

However, money is still being allocated through state laws and consent decrees at last year’s rates while less revenue is coming in.

Brown said “the speaker’s position continues to be that the budget is the No. 1 issue in the state that needs to be addressed”.

“The governor has compromised repeatedly, and it is now time for Democrats who control the Legislature to either come to the table with the governor to pass reforms that grow the economy and produce a balanced budget or use their super-majority to pass a truly balanced budget on their own”, Kelly said in an email. That bad news can’t be overstated, but we focused on any possible solutions that the Comptroller sees for the Illinois Budget.

“One thing I wouldn’t do is discuss that with you now”, the governor said.