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| Quinn, Hynes Still Differ on Paying Bills |
Gov. Pat Quinn is still hopeful the state will borrow short-term funds to catch up on unpaid bills.
Despite Quinn's optimism, state Comptroller Dan Hynes says he will not sign off on $500 million in short term borrowing. He says additional borrowing is bad.
"Borrowing is not a comprehensive plan," Hynes said. "Borrowing is a patch-over plan, especially when we've already borrowed over $2 billion and we're about to borrow another $3 billion. So nearly $6 billion in short-term borrowing is what's holding this budget together -- barely."
Hynes, a challenger of Quinn in the Democratic primary race for governor, says the state has already been authorized to borrow $3.5 billion in pension bonds but Quinn has failed to act. Quinn says that's not exactly the case.
"The original plan was to [issue pension obligation bonds] in the latter part of the fiscal year," Quinn said. "We've tried to accelerate that. It'll be done in January. Those proceeds will be helpful to paying bills as well."
Quinn says without the $500 million short-term loan there would be a delay in payment. He says he would rather see the bills paid soon. On the issue of the interest it would cost the state, Quinn says there are penalties that the state must pay for late payment to state vendors. He says either way, the state will have to pay additional dollars.
The state is roughly four months behind in paying its bills, with invoices stacked up in the comptroller's office to the tune of $4.5 billion.
(Illinois Radio Network) |
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| 12 08 09 by Newsroom |
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