State Borrowing from Charity Funds to Pay Bills

By Chuck Sudo in News on Jun 27, 2011 1:42PM

Here's how much of a tumbleweed Illinois' budget deficit has become. The News-Gazette of Champaign is reporting that the state has borrowed a total of $1.176 million in fiscal year 2011 from funds taxpayers designate to charities on their tax returns.

Office of Management and Budget spokeswoman Kelly Kraft (who just got a 48 percent pay raise after receiving another job title) said the state plans on paying back the money within a few months. The State Legislature signed off on the plan and the money needs to be paid back withing 18 months, with interest.

Kraft said that it normally takes designated charities six months to receive the donations. The Tribune reports the eastern Illinois Foodbank hasn't received its charitable funding from the checkoff system for 2009 or 2010. Crisis nurseries across Illinois are also waiting for their money. Crisis Nursery of Champaign County Executive Director Stephanie Record said she's concerned that taxpayers aren't aware of the state dipping its hands into the funds. "It just seems really inappropriate to use charities to pull money in, and then pull that money out to pay for bills."

In addition to taking money intended for charities, the state also borrowed $434,000 from seven funds last fiscal year that it doesn't have to pay back. Kraft said that Gov. Quinn moved to do away with such fiscal "sweeps" once he succeeded Rod Blagojevich as Governor.