Illinois Budget Mess Deepens: Using 2011 Funds to Pay 2010 Bills

From The Bond Buyer, a website that tracks news on the bond market we see that the president’s home state is in an ever deeper budget hole every day.

In a stark illustration of Illinois’ deteriorating balance sheet, the state ended the first quarter of fiscal 2011 with $5.5 billion in overdue bills and faces a possible structural deficit of at least $15 billion in the next fiscal year if no action is taken, Comptroller Dan Hynes warned in his quarterly report.

The state closed out fiscal 2010 on June 30 owing $4.7 billion in bills. Another $1.7 billion of bills incurred in fiscal 2010 were submitted by an Aug. 30 deadline to bring the total level of fiscal 2010 bills to $6.4 billion. That figure represents 23% of fiscal 2010 general fund revenue.

Worse, the state is robbing Peter to pay Paul by taking money from the 2011 budget to pay 2010 bills. The state of Illinois is in fiscal meltdown and instead of cutting cost they are simply stealing money from future budgets to pay today’s bills. Worse, there really IS no future budget because the state has failed to pass one.

The Democrat led state legislature in Springfield spent most of this legislative year completely unable to pass a state budget. It wasn’t until the post Summer break that they were able to garner enough votes to pass an emergency budget. SB3660 was passed as an emergency measure but the legislature has still not passed a full budget as it is legally bound to do.

Meanwhile bills pile up and go unpaid and services across the state are being systematically shut down over unpaid vendors. As State Comptroller Dan Hines reports, by the end of fiscal 2010 the state will have $5.1 billion in unpaid bills. Additionally there is another $2.25 billion in short-term loans that must be repaid. There are other obligations unpaid as well.

The State of California is faced with similar problems. In September, California and Illinois were ranked as the number one and number two worst budget crises in the country.

See the report for specifics: http://www.ioc.state.il.us/ioc-pdf/CQ_October_2010.pdf.

(H/T News Alert)

Warner Todd Huston

Warner Todd Huston is a Chicago-based freelance writer, has been writing opinion editorials and social criticism since early 2001 and is featured on many websites such as Andrew Breitbart's BigGovernment.com, BigJournalsim.com and all Breitbart News' other sites, RightWingNews.com, CanadaFreePress.com, and many, many others. Additionally, he has been a frequent guest on talk-radio programs across the country to discuss his opinion editorials and current events as well as appearing on TV networks such as CNN, Fox News, Fox Business Network, and various Chicago-based news programs. He has also written for several history magazines and appears in the book "Americans on Politics, Policy and Pop Culture" which can be purchased on amazon.com. He is also the owner and operator of PubliusForum.com. Feel free to contact him with any comments or questions : EMAIL Warner Todd Huston and follow him on Twitter, on Google Plus , and Facebook.

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