Illinois’ unpaid vendor debt nears $17 billion
Illinois’ unpaid vendor debt ticked closer to $17 billion earlier this month, unchartered waters even for the long cash-strapped state.
According to the Illinois Comptroller’s website, unpaid debt registered $16,675,255,779.90 as of Nov 7. On Oct. 1, the debt was reported at just over $15 million, according to a Twitter post by the state comptroller.
The increase in debt was largely fueled by news that after a two-year impasse, the state had finally enacted a budget to reduce the risk of the state being downgraded to junk status, according to Bloomberg.
Bloomberg also reported the state’s outlook was uplifted by reports Gov. Bruce Rauner was close to selling off $6 billion in bonds he planned to apply toward the debt.
Illinois’ bill backlog tripled from about $5 billion over a two-year period when the state operated with no budget. Debt continues to escalate by at least $2 million a day in late payment interest penalties.