WEBVTT

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>> ILLINOIS MAY HAVE A BUDGET

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BUT SCORES OF SCHOOLS, HOSPITALS

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AND SOCIAL SERVICE AGENCIES ARE

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STILL WAITING FOR CASH THE STATE

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OWES THEM.

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WHAT IS BEING DONE ABOUT IT?

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THE ILLINOIS OFFICERS SAY NOT

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ENOUGH.

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WE'RE JOINED BY AMANDA VINICKY.

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FIRST, HOW MUCH DOES THE STATE

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OWE IN AGGREGATE?

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>> YOU RECALL, THE STATE KEPT ON

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SPENDING MORE THAN THE STATE WAS

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TAKING IN AND ONE OF THE WAYS

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THAT ILLINOIS WAS ABLE TO GET

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AWAY WITH IT WAS DELAYING

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WRITING CHECKS.

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NOT TALKING ABOUT A DEFICIT OR

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THE UNFUNDED PENSION LIABILITY

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I'M TALKING ABOUT A BACKLOG OF

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OVERDUE, UNPAID BILLS THAT

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BALLOONED TO $15 BILLION.

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NOW NOT THAT YOU WOULD DO

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ANYTHING LIKE THIS.

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BUT LET'S IMAGINE...

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IF YOU WERE GOING TO RUN UP YOUR

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CREDIT CARD BILL AND DID NOT

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PAY, YOU WOULD INCUR A TON OF

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INTEREST AND THE SAME THING FOR

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THE STATE OF ILLINOIS.

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THERE IS A LAW THAT SAYS IF

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ILLINOIS IS MORE THAN THREE

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MONTHS LATE PAYING CERTAIN

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VENDORS IT TOO, BEGINS TO RACK

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UP INTEREST AND IT IS NOT CHEAP.

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SOME OF THE BILLS COST ILLINOIS

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UP TO 12% INTEREST.

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>> SO --

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>> THERE'S WAYS TO SMARTLY

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ATTACK THE BILL BACKLOG BUT WE

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HAVE TO DO THAT RIGHT AWAY.

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PEOPLE THINK NOW THAT WE HAVE A

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BUDGET WE SHOULD HAVE PAYMENTS

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WITHOUT ACCESS TO THE CAPITAL

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IT'S AS IF WE DID NOT HAVE THE

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BUDGET YET FOR THE PURPOSES FOR

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THE PEOPLE AIT WHATTING PAYMENT

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FROM THE STATE OF ILLINOIS.

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>> WHAT IS THE PLAN?

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>> IT'S NOT JUST THE

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COMPTROLLER, MENDOZA IS MAKING A

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BIG DEAL ABOUT THIS.

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THE TREASURER WHO IS A DEMOCRAT

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SUPPORTS IT, TOO.

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AND THIS IS IMPORTANT TO KEEP IN

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MIND GOING FORWARD SO DID

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REPUBLICANS.

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SENATOR BILL BRADY HE IS NOW THE

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TOP REPUBLICAN IN THE SENATE,

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HAD SOMETHING LIKE THIS PLANNED

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IN THE BUDGET HE PROPOSED A

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BUDGET THAT THE GOVERNOR, BY THE

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WAY, SAID HE WOULD SUPPORT AND

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GROUPS LIKE THE CIVIC FEDERATION

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DO, TOO.

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HERE IS THE PLAN...

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WHEN THE GENERAL ASSEMBLY PASSED

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A BUDGET LEGISLATORS AUTHORIZED

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A BOND ISSUE.

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BORROWING $6 BILLION THAT COULD

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BE USED TO PAY DOWN THE BILL

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BACKLOG.

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YOU MAY THINK ILLINOIS BORROW

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MORE?

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HERE IS WHY MENDOZA AND ALL OF

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THE OTHER INDIVIDUALS AND GROUPS

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SAY THAT IT MAKES SENSE.

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>> THE SAME AS A PERSON WITH

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THEIR HOME MORTGAGE.

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IF A PERSON IS PAYING INTO THEIR

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MORTGAGE BUT PAYING 7% INTEREST

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ON THAT MORTGAGE LOAN.

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AND THEY COULD GET A DEAL WHERE

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THEY PAY 3% IT'S COMMON SENSE IT

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IS A GOOD OPPORTUNITY TO

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REFINANCE THE DEBT.

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YOU DO NOT ELIMINATE IT BUT

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PAYING LOWER INTEREST RATES ON

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THE DEBT.

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THE STATE OF ILLINOIS HAS $15

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BILLION IN DEBT.

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IF WE DIDN'T HAVE ANY DEBT I

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WOULD NOT BE MAKING THE CASE FOR

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BORROWING.

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BUT WHEN WE HAVE A $15 BILLION

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DEBT AND PAYING UP TO 12%

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INTEREST ON PAYING OUR BILLS

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LATE, THEN A REFINANCE

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OPPORTUNITY AT A MUCH LOWER

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INTEREST RATE IS JUST COMMON

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SENSE.

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>> ONLY THE RAUNER

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ADMINISTRATION CAN MOVE FORWARD

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ON BORROWING.

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MENDES SA SENT LETTERS TO THE

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GOVERNOR.

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ONE RIGHT AFTER THE BUDGET

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PASSED OVER THE GOVERNOR'S

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OBJECTIONS IN JULY AND ANOTHER

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ON THE 28TH OF LAST MONTH.

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BOTH STRESSING THAT ILLINOIS IS

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SPENDING $2 MILLION A DAY PAYING

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INTEREST.

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REPUBLICANS OFTEN USE THE

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FIGURE, TOO, DURING THE BUDGET

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IMPASSE.

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WHILE IT WOULD NOT WIPE IT OUT

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IT COULD MAKE A DENT AND ENABLE

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THE STATE TO STOP ACCRUING

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INTEREST.

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MENDOZA SAYS THE GOVERNOR'S

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OFFICE GAVE NO RESPONSE TO HER

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LETTERS.

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INSTEAD OF GOING FORWARD HE IS

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DRAGGING HIS FEET.

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>> WHAT DOES THE GOVERNOR HAVE

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TO SAY?

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>> FUN NEW YOU ASK.

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HE HELD A PRESS CONFERENCE AND I

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ASKED HIM WILL YOU COMMIT TO

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MOVING ON THIS BOND ISSUE?

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HERE WAS HIS RESPONSE?

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>> BORROWING ON STOP OF THE

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SPENDING BEHAVIOR OF THE STATE

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GOVERNMENT IS NOT AN OPTIMAL

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ANSWER.

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WE WILL BE WORKING TO REFINANCE

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CERTAIN DEBT.

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BUT, AGAIN, ONE OF THE FLAWS IN

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OUR CURRENT BUDGET IS THERE WAS

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NO APPROPRIATION FOR PAYING DOWN

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DEBT.

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AND TO GO TO MARKET AND TELL

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BOND BUYERS, HEY, WE DON'T HAVE

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A BALANCED BUDGET EVEN NOW AND

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WE HAVE NOT MADE ANY

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APPROPRIATIONS TO PAY DOWN DEBT,

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WE NEED A PLAN TO REPAY THE

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DEBT.

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OTHERWISE WE SHOULDN'T BE GOING

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OUT TO A BORROWER AND ASKING FOR

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MORE FINANCING.

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>> SO TO CODE THAT, IT CERTAINLY

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DOESN'T SOUND LIKE THE GOVERNOR

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IS ANY HURRY TO GET IT DONE NOW

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OR MAYBE EVER.

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ANOTHER REPORTER ASKED RAUNER IF

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YOU CAN BORROW THE A4% INTEREST

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INSTEAD OF PAYING 12%, DOESN'T

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THAT SAVE THE STATE MONEY, WHY

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NOT GO FOR IT?

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HE REPEATED WHAT YOU JUST HEARD.

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I THEN TRIED ASKING BOTH RAUNER

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AND SPOKESWOMAN WHAT HE MEANT BY

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REFINANCING CERTAIN DEBT.

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I DID NOT GET A DIRECT ANSWER.

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HIS SPOKESMAN SAID THAT RAUNER

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WORKED WITH THE COMPTROLLER TO

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ADDRESS THE BACKLOG AND THAT THE

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GOVERNOR'S OFFICE IS WORKING TO

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SAVE TAXPAYER DOLLARS TO CUT

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DOWN ON FUTURE DEBT.

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THE GOVERNOR'S OFFICE SAID THAT

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THE COMPTROLLER DOES HAVE THE

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ABILITY TO BORROW $600 MILLION

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FROM CERTAIN STATE FUNDS AND USE

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THAT MONEY TO PAY DOWN THE BILL

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BACKLOG.