State Pays Bills…Within 7 Months

A recorded message on one of the Comptroller's phone help lines warns that the state is currently processing vouchers within 140-145 business days.

by Amanda Griffin-Johnson

While going through data from the Illinois State Comptroller’s Office, I had a question about something in the Statewide Accounting Management System (SAMS). I called the Comptroller’s SAMS Help Desk to inquire about the issue, and while on hold, I heard the following recorded message:

“Vouchers are normally paid in a timely manner. However, due to budget restraints, payments are currently being processed within approximately 140 to 145 business days from the time they are received from the authorizing agency. Generally, vouchers are paid on a first come first serve basis, with the exception of school aid and other statutory demands.”

According to the SAMS manual, “[t]he Office of the Comptroller provides fiscal control over State spending through its voucher approval and warrant writing functions.” Because of the current budget situation, the Office of the Comptroller is paying vendors “within approximately 140 to 145 business days”- that’s almost seven months! No wonder some businesses don’t want to do business with the state without upfront payment.

How much are all these late bills costing the state? The State Prompt Payment Act is meant to ensure that the state pays vendors in a timely manner. After 60 days, payments are subject to 1% interest per month or fraction of a month until the amount is paid. In fiscal year 2009, the state agencies featured on our transparency website, IllinoisOpenGov.org, spent a combined $2,891,483 on interest penalties.

Illinois is currently facing $6 billion in unpaid bills, the highest unemployment rate of the last 27 years, and over $80 billion in pension liabilities. The state cannot afford to continue to kick the can down the road. Check out our Budget Solutions 2011 for an alternative spending blueprint for the future.