From a high of $9.9 billion in 2010, Illinois' backlog of bills has now fallen to $4.174 billion -- the lowest it has been in years.
Governor Pat Quinn inherited a system in which one year's bills were carried over to be paid in the following year. Gov. Quinn and the General Assembly worked together to end that practice and set aside money each month to pay down the backlog that rose to $9.9 billion during the recession.
The bond ratings agencies have praised the administration's efforts as the backlog has come down, with Fitch Ratings noting, "The state prudently used higher than forecast income tax collections in fiscal 2013 to pay down a portion of the accounts payable balance."
Moody's added, "The governor's budget for the first time demonstrates how the state might decrease its unpaid bill backlog over several years. It presents a "blueprint" showing the state trimming accounts payable to about $2.2 billion, as of the end of fiscal 2019. This amount, consistent with a 30-day payment cycle, would be only a third of the backlog at the end of fiscal 2013."
"Even as outside factors have forced us to make difficult but financially sound choices in all areas of the state budget, Governor Quinn has maintained the discipline of dedicating money to pay down the backlog of bills," said Acting Budget Director Jerome Stermer.
The backlog is cyclical, generally falling in the first part of the year as income tax receipts come in and rising in the second half of the year, but the overall trend has been down as the administration, working with the General Assembly, has dedicated resources to paying down the backlog, Stermer said.
Beginning in January, on the 15th of each month, the Governor's Office of Management and Budget has posted on its website a detailed account of the backlog of bills. Traditionally, April is the strongest month for state tax receipts and for paying down old bills. http://www2.illinois.gov/gov/
