Prairie State Wire

The Illinois Office of Comptroller (IOC) has announced the successful conclusion of another fiscal year, marking the third consecutive year without any unpaid bills in the state's General Revenue Fund (GRF). This achievement ensures that all payments related to Medicaid, state health insurance, education, and other government programs are current.

Comptroller Susana Mendoza emphasized her commitment to providing stability for state providers and vendors. “I’m committed to giving our state providers and vendors the stability and predictability that they should expect from state government. Having received countless hardship calls from these providers and vendors during the state’s budget impasse, I believe it is the responsible approach we must continue to take,” she stated.

The timely payment process has been welcomed by various stakeholders. Matt Pickering, Executive Director at the Health Care Council of Illinois, noted its importance: “Timely payments to nursing homes and managed care organizations are essential to operations and for providing care to our elderly Medicaid residents.” Garth Reynolds from the Illinois Pharmacists Association added that regular payments help community pharmacies avoid becoming pharmacy deserts.

Despite fulfilling all financial obligations, the IOC reported an end-of-year cash balance of $1.7 billion in the GRF—a 55% increase over last year's $1.1 billion balance. The healthy cash flow generated over $558 million in interest income this fiscal year.

Mendoza plans to use these funds strategically under a new law allowing pre-payment of pension obligations. She remarked, “We have told the state retirement systems to send us 50% more in monthly vouchers in July so we can advance these payments.”

Advocating for extra contributions to pensions and a Rainy Day Fund during robust fiscal periods remains a priority for Mendoza. Recently, $200 million was directed into pensions with additional deposits boosting the Rainy Day Fund balance towards an anticipated $2.3 billion by June 2025.

“Each year, we continue to see improvements in the state’s fiscal stability,” Mendoza said. She underscored careful planning as key elements noticed by bond rating agencies but acknowledged ongoing work needed on reserves and pension liabilities.