SPRINGFIELD — Thousands of state vendors could face the prospect of having to go to court to collect money they are owed by the state.
In a memo to legislative leaders Tuesday, Gov. Pat Quinn acknowledged the possibility that the state’s budget mess could force angry vendors to file lawsuits with the Illinois Court of Claims this fall.
The Chicago Democrat told the leaders that he wants a change in law in order to avoid the looming legal showdown.
“I think there’s an understanding that we have to do something,” Quinn budget chief David Vaught told reporters in the Capitol.
As of Tuesday, the state owed $4.5 billion to individuals and companies that sell products and services to the state.
Under current law, the state generally must pay all those bills by Aug. 31.
If the state is unable to close the massive backlog by that date, the only recourse for getting paid is to file a lawsuit at the Court of Claims.
Quinn wants to extend that deadline to Dec. 31.
Already, the state’s woeful payment record has turned some vendors away from doing business with Illinois government. The Illinois Department of Corrections, for example, had to buy bullets from an Indiana firm when the state’s regular bullet vendor wouldn’t sell them any until it was paid the $6,000 it was owed.
Some lawmakers are already on board with the idea — even though it will mean paying this year’s bills with tax dollars collected in the next fiscal year, a move that will plunge the state deeper into debt.
“We need to think about changing it. I just don’t think it’s fair to make these people have to file lawsuits to get their money,” said state Rep. Frank Mautino, D-Spring Valley.
“I think there’s a recognition that we’re way behind,” added Vaught.
On Tuesday, Quinn also said he wants to cut another $400 million from the state budget as part of a plan to reduce the backlog of unpaid bills. In addition, he plans to borrow excess money from other special state funds, as well as use money from the state’s share of a settlement with tobacco companies.
The moves are aimed at reducing the backlog to $2.9 billion.
At the same time, Quinn is continuing to call for a 33 percent boost in income taxes, which would raise about $2.8 billion.
“The truth is we need revenue,” Quinn noted.
Republican leaders emerged from a closed-door meeting with Quinn saying little had been accomplished as the clock ticks down on the spring legislative session.
“The focus continues to be on borrowing and raising taxes,” said Senate Minority Leader Christine Radogno, R-Lemont.
She said the administration has not given her a specific list of cuts that Quinn has made to the budget in order to get spending under control.
“We want to know exactly what has been cut,” Radogno said.
http://www.pantagraph.com/news/state-and-regional/illinois/article_3f2181ca-4cbc-11df-abe0-001cc4c002e0.html
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