Illinois' Black Hole Budget

By aaroncynic in News on Apr 25, 2012 9:40PM

Illinois is still deep in the hole fiscally despite some fiscal growth over the past three quarters. State Comptroller Judy Baar Topinka released her quarterly report on Monday, which showed the state carries a staggering $5.5 billion in backlogged bills. The report shows an increase of $1.304 billion in unpaid debts from the second quarter and “payment delays are expected to persist for the forseeable future.”

Revenues for the state increased overall by 3.9 percent, with a growth of $3.594 billion in individual income tax receipts and $368 million in corporate tax revenues. In addition, sales tax revenues were up by 6.2 percent ($314 million) and “other state receipts” were up 3.0 percent, or $66 million, from last fiscal year. Federal revenues and transfers both declined.

Increased revenues however, fail to put even a dent in the budget black hole. According to the report:

Specifically, the backlog is comprised of $4.322 billion in the General Revenue Fund ($121 million in backlogged pension payments), $974 million in the Education Assistance Fund ($193 million for pensions), and $281 million in the Common School Fund (all for pensions).

Essentially, Illinois is barely treading water fiscally. According to the Tribune, Standard & Poor’s Rating Service warned again last week the state could face a downgrade in its system if it makes no progress.