The state of Illinois has a bit of a money problem...CHICAGO (CBS) ― The State of Illinois' pile of unpaid bills has grown to a record-breaking $3 billion. Comptroller Dan Hynes said Tuesday it's never before been this bad at this point in any previous fiscal year. CBS 2 Political Editor Mike Flannery reports that some social service agencies that rely heavily on state reimbursement warn they will soon be forced out of business.
Hynes said that things are likely to get worse before the state's bleak revenue picture begins to improve.
The comptroller reported corporate income tax receipts down $77 million for July through September; sales tax receipts, down $244 million; personal income tax receipts, down $251 million.
One result: the typical creditor must now wait three months to be paid by the state, compared to a two-month wait at this time last year.
Another sign that the recession is far from over. The simple fact that states can't pay their bills will have huge ramifications for the normal people of America. Much more than the federal government, local and state governments are essential for everyday life expenditures in America. If they tighten up all the doors and stop providing business and basic services, we're going to be in a whole world of hurt.
Perhaps Illinois should get a credit card?
No comments:
Post a Comment