Illinois comptroller’s plan to pay off state’s bill backlog includes borrowing more money
Even with 32 percent tax hike, Illinois State Comptroller expects only $5 billion of the state’s unpaid bills to be paid down.
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.
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.