Report: Quinn Wants To Borrow To Pay Bills
SPRINGFIELD, Ill. (WBBM) – Published reports are describing what Gov. Pat Quinn will have to say in his budget message to be delivered Wednesday.
As WBBM Newsradio 780’s Bob Conway reports, Quinn is expected to call for the state to borrow $8.75 billion to help the deal with its huge backlog of unpaid bills.
LISTEN: Newsradio 780′s Bob Conway reports
The idea is to use the money to pay some 36,000 vendors owed an estimated $7 billion.
Under the Quinn plan, the loan would be paid back over a period of 14 years using money generated by a portion of the now-higher state income tax.
The Chicago Tribune notes that some providers have been waiting as long as six months to be paid by the state. This has forced some providers to lay off workers, cut services, and stretch their credit to stay in business.
But at the same time, Quinn’s budget office concedes the borrowing still wouldn’t be enough to cover everything the state owes.
Republicans say the state must first implement more spending reforms before any borrowing is done.