2007 ended with Illinois owing record amount

SPRINGFIELD -- The state of Illinois ended 2007 with the bills it owed reaching a record amount, according to the comptroller's office.

A report released by Comptroller Dan Hynes' office indicates the backlog of outstanding bills stood at more than $1.7 billion. That compares to the $1.33 billion the state owed at the same time in 2006.

In addition, it is now taking Illinois 34 business days to pay bills once they land in the comptroller's office, up from the 22 days it took a year ago.

The report says both the backlog volume and the number of days delayed represent record levels for the midpoint of the fiscal year, which runs from July 1 to the following June 30.

The report says there are several factors behind the backlog, including the decline in corporate income tax revenue, insignificant sales tax revenue growth and the failure of the General Assembly to transfer money from restricted accounts into the state's general fund.

The report warns that things could get worse, especially if lawmakers decide to divert sales taxes collected on gasoline purchases to help fund mass transit systems in the Chicago area.

It also cautions that tax collections tied to the economy such as the sales tax and corporate income taxes "point to an apparently slowing economy."

The Hynes report mirrors one issued Monday by the Commission on Government Forecasting and Accountability, which warns state sales taxes and corporate income taxes are "underperforming," putting pressure on state finances.