State’s Unpaid Bills only Going to Get Worse

As the state budget crisis continues to deepen, the backlog of unpaid bills only grows larger.  The state has reached a record amount of unpaid bills, with schools throughout Illinois owed over $1 billion, local municipalities waiting on $500 million in payments, and state universities are unsure when the hundreds of millions of dollars they are supposed to receive will arrive.  The University of Illinois alone is owed over $400 million.  In total, Illinois owes between five and six billion dollars in back bills to venders, service providers and other institutions.

Adding to the problem is the enormous length of time many of these groups are forced to wait.  Some state employees covered under policies paid for by the state have been told that they will have to pay for medical costs upfront because the state is so slow in reimbursing the insurers.  Some have reported not receiving payments for services rendered over six months ago.  This problem will likely only get worse as the year wears on.  With tax receipts down for Fiscal Year 2010 and a continuing economic slump, the decisions made over the next couple months will be critical.

Only in Chicago

Sometimes this section of my column just writes itself, and this week was no exception with an abundance of malfeasance and financial ineptitude stories emerging from the Windy City.  The first that caught my eye focused on high priced meals and fancy artwork purchased on the taxpayer’s dime by former Chicago School Board President Michael Scott and current President Rufus Williams.  It is probably worth mentioning that the Chicago Board of Education is currently looking at a $900 million hole.  Among the purchases outlined in the investigation are a $1,000 limo used to chauffer Mr. Williams around New York for one day, numerous artworks costing as much as $3,000 per piece, high priced clothing, and meals at expensive restaurants throughout the city.  It should also be noted that both these men received additional compensation through a monthly stipend which is supposed to cover the cost of some of these expenses.  Apparently, it was simply easier to use the Boards credit card than spend the money allotted for such extravagant expenditures.