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.

  • Lee

    Why does he need to borrow to pay the bills, when he just stole from the citizens of Illinois?

    • BobB

      Quinn has a limited responsibility for the mess we’re in (the responsibility lies with Dem. and Rep. administrations going back to Thompson for underfunding pensions and borrowing to fund ongoing operating costs, with Madigan the chief architect, and us, the voters and taxpayers for wanting something for nothing), and all of the responsibility for fixing it.

      Get real, Lee, we ‘stole’ it from ourselves.

  • Art

    He just raised our taxes, now this? What makes him think he can manage the budget with this loan? No way!

  • bc

    I say recall Quinn — we now have the law for it, right?

  • nauseated

    And he stil won’t cut the lavish pensions or excessive salaries of public workers. The tax increase was to give raises and pension increases. Not much left for anything else. Cut the pay. Nobody will leave a job where they don’t have to do much work at or have any skill at. These are the people that couldn’t cut it in the private sector. They won’t leave a job that at 52 they can collect 75% of their pay for the rest of their lives. Even with a pay cut they’ll be getting more than any private sector worker.

  • nauseated

    Pension Reform:
    Leave any current retirees at their current rate. If they receive over 40k a year, no more increases. Retirees on SS haven’t received an increase in 2 years. Any new people going on retirement must wait until 62 like everyone else and get a reduced rate and receive max at 67. 30% for 20 years and 50% for 30 years. Max pension benefit for anyone is 55k. This will save a ton. Why should public workers get rich off the backs of the working class in IL? Let them get what everyone else gets in society.

    • Reality Check

      Some version of this, with people like Art Berman, Carol Ronen and the double-dipping Supt. of Schools bunch, who got undeserved bumps of tens of thousands of dollars for short terms of service having to toss those amounts back in to the funds, will need to happen to make the pension funds whole (it’s in the best interests of the workers in the long run), but, there will still need to be funds added to the pension funds to make up for the underfunding that Madigan has perpetrated for multiple decades.

      Even conservative organizations like the Chamber of Commerce say so.

  • I Hate Tea

    It’s funny. The same Tea-baggers who love to tout financial responsibility all have their panties in a wad because Gov. Quinn is doing just that.
    I suppose it would make them happier if he cut the minimum wage and taxed only the poor, while at the same time giving huge tax breaks to corporations and giving tax cuts to millionaires.

  • mimi

    You should try some tea instead of the kool-aid you’re drinking. The rich and business aren’t paying their fair share?… The Illinois corporate tax structure is the highest in the industrialized world.
    I’m sure out of control spending, corrupt politicians, state employee entitlements, and massive unfunded debt liability have had very little to do with financial condition of our state.
    What responsible money lending institution would sink 8.75 billion into this lost cause?

  • Mr. Justice

    THIS MAN IS AN IDIOT! HAS HE HEARD ABOUT CUTTING SPENDING? JUST CUT OUT THE WELFARE GIVEAWAYS AND THAT SHOULD DO THE TRICK. Oh, that’s right those comments are not politically correct. Too bad! We continue to enable people in our society, when people actually need to know that there are consequences to their actions.

  • Not "Right"

    Mimi – I’d check that claim of yours that the IL corporate tax structure is the highest in the industrailzed world?
    Really? In the immortal words of a dear companion and hero to you, “Thanks, but not thanks” to your kool-aid-infused logic. There are so many tax loopholes that large corporations take advantage of. I personally know a former corporate attorney who told me you couldn’t even begin to imagine the figures of corporate “earnings” from utilizing these tax loopholes.
    It’s amazing that you’re trying to give your tea-bagger brand of Kool-Aid to poor and working class familes by informing them that large corporations and millionares are the ones we TRULY need to feel sorry for.
    That argument really doesn’t hold water, unless of course you bring guns and Jesus up too. Then, I’ll admit, the Kool-Aid is EXTREMELY effective.

  • I Luv George W.

    I’d be willing to vote against my financial interests if it meant more guns and Jesus. Defanately!

  • mimi

    Not “Right” is correct, you’re completely wrong. Please assign blame where it belongs…the politicians, NOT business. Working families are getting crushed by these taxes ALONG with business.
    The state’s bond rating was downgraded in 2010 to an “A-minus.” The total state debt is more than $120 billion.
    The tax increase plan, prepared in cooperation with the administration of Illinois Governor Pat Quinn, would raise the individual tax rate by 75 percent and the corporate income rate by 49 percent, giving the state the highest corporate tax rate in the country and the highest combined (national and local) corporate income tax rate in the industrialized world.
    —Tax Foundation, Jan. 7, 2011

    I’m glad your corporate lawyer buddy has so much insight. Maybe you should ask him if the Tea Party, guns, or Jesus bankrupted our state.

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