State's vendor debt pegged at $8.6 billion as it continues inching lower
Illinois’ unpaid vendor debt continued its downward trickle during the week ending Jan. 24, with the state’s comptroller’s website pegging it at $8,666,126,495.36, marking at least the sixth straight week the overall amount has gradually diminished.
The downward trend has been in effect ever since Gov. Bruce Rauner moved to issue $6 billion worth of general obligation bonds, all of which was applied to the state’s debt after it had spiraled to a record-high of almost $17 billion.
The changing trajectory comes just months after Crain's Chicago Business reported the state owed more than 60 businesses at least $10 million each and was in arrears to 13 of them for $100 million or more.
Much of the state’s runaway debt can be traced to a two-year period when the state operated with no budget in place, a period that also saw the state’s overall vendor debt triple from roughly $5 billion.
Even now, Illinois Comptroller Susanna Mendoza recently told reporters the state continues to run up approximately $2 million a day in late payment interest debt.