• Despite tax windfall, Ill. fiscal health little improved

    by  • June 13, 2013 • News

    Despite a windfall of money in April that went to pay state vendors, Illinois’ comptroller is warning that the payments will have little impact on the state’s long-term fiscal health.

    A stronger-than-expected income tax season brought an additional $1.2 billion, earmarked for vendor payments, into state coffers, but comptroller Judy Barr Topinka says while it’s nice to get money to vendors, that windfall will soon be over and debts will again rise.

    Topinka says by August the state will be back to close to $9 billion in the hole. The state currently owes $5.8 billion to vendors and care providers.

    Topinka says she has started putting priority on payments to non-profits, particularly those that serve the elderly or disabled.

    Topinka says she warned lawmakers not to inflate the budget but she says they did so anyway. Topinka warns lawmakers that the money just isn’t there. Combine that with the sunset of a temporary income tax increase in 2015, and Topinka says the bill backlog will continue to grow.