>> ILLINOIS MAY HAVE A BUDGET

BUT SCORES OF SCHOOLS, HOSPITALS

AND SOCIAL SERVICE AGENCIES ARE

STILL WAITING FOR CASH THE STATE

OWES THEM.

WHAT IS BEING DONE ABOUT IT?

THE ILLINOIS OFFICERS SAY NOT

ENOUGH.

WE'RE JOINED BY AMANDA VINICKY.

FIRST, HOW MUCH DOES THE STATE

OWE IN AGGREGATE?

>> YOU RECALL, THE STATE KEPT ON

SPENDING MORE THAN THE STATE WAS

TAKING IN AND ONE OF THE WAYS

THAT ILLINOIS WAS ABLE TO GET

AWAY WITH IT WAS DELAYING

WRITING CHECKS.

NOT TALKING ABOUT A DEFICIT OR

THE UNFUNDED PENSION LIABILITY

I'M TALKING ABOUT A BACKLOG OF

OVERDUE, UNPAID BILLS THAT

BALLOONED TO $15 BILLION.

NOW NOT THAT YOU WOULD DO

ANYTHING LIKE THIS.

BUT LET'S IMAGINE...

IF YOU WERE GOING TO RUN UP YOUR

CREDIT CARD BILL AND DID NOT

PAY, YOU WOULD INCUR A TON OF

INTEREST AND THE SAME THING FOR

THE STATE OF ILLINOIS.

THERE IS A LAW THAT SAYS IF

ILLINOIS IS MORE THAN THREE

MONTHS LATE PAYING CERTAIN

VENDORS IT TOO, BEGINS TO RACK

UP INTEREST AND IT IS NOT CHEAP.

SOME OF THE BILLS COST ILLINOIS

UP TO 12% INTEREST.

>> SO --

>> THERE'S WAYS TO SMARTLY

ATTACK THE BILL BACKLOG BUT WE

HAVE TO DO THAT RIGHT AWAY.

PEOPLE THINK NOW THAT WE HAVE A

BUDGET WE SHOULD HAVE PAYMENTS

WITHOUT ACCESS TO THE CAPITAL

IT'S AS IF WE DID NOT HAVE THE

BUDGET YET FOR THE PURPOSES FOR

THE PEOPLE AIT WHATTING PAYMENT

FROM THE STATE OF ILLINOIS.

>> WHAT IS THE PLAN?

>> IT'S NOT JUST THE

COMPTROLLER, MENDOZA IS MAKING A

BIG DEAL ABOUT THIS.

THE TREASURER WHO IS A DEMOCRAT

SUPPORTS IT, TOO.

AND THIS IS IMPORTANT TO KEEP IN

MIND GOING FORWARD SO DID

REPUBLICANS.

SENATOR BILL BRADY HE IS NOW THE

TOP REPUBLICAN IN THE SENATE,

HAD SOMETHING LIKE THIS PLANNED

IN THE BUDGET HE PROPOSED A

BUDGET THAT THE GOVERNOR, BY THE

WAY, SAID HE WOULD SUPPORT AND

GROUPS LIKE THE CIVIC FEDERATION

DO, TOO.

HERE IS THE PLAN...

WHEN THE GENERAL ASSEMBLY PASSED

A BUDGET LEGISLATORS AUTHORIZED

A BOND ISSUE.

BORROWING $6 BILLION THAT COULD

BE USED TO PAY DOWN THE BILL

BACKLOG.

YOU MAY THINK ILLINOIS BORROW

MORE?

HERE IS WHY MENDOZA AND ALL OF

THE OTHER INDIVIDUALS AND GROUPS

SAY THAT IT MAKES SENSE.

>> THE SAME AS A PERSON WITH

THEIR HOME MORTGAGE.

IF A PERSON IS PAYING INTO THEIR

MORTGAGE BUT PAYING 7% INTEREST

ON THAT MORTGAGE LOAN.

AND THEY COULD GET A DEAL WHERE

THEY PAY 3% IT'S COMMON SENSE IT

IS A GOOD OPPORTUNITY TO

REFINANCE THE DEBT.

YOU DO NOT ELIMINATE IT BUT

PAYING LOWER INTEREST RATES ON

THE DEBT.

THE STATE OF ILLINOIS HAS $15

BILLION IN DEBT.

IF WE DIDN'T HAVE ANY DEBT I

WOULD NOT BE MAKING THE CASE FOR

BORROWING.

BUT WHEN WE HAVE A $15 BILLION

DEBT AND PAYING UP TO 12%

INTEREST ON PAYING OUR BILLS

LATE, THEN A REFINANCE

OPPORTUNITY AT A MUCH LOWER

INTEREST RATE IS JUST COMMON

SENSE.

>> ONLY THE RAUNER

ADMINISTRATION CAN MOVE FORWARD

ON BORROWING.

MENDES SA SENT LETTERS TO THE

GOVERNOR.

ONE RIGHT AFTER THE BUDGET

PASSED OVER THE GOVERNOR'S

OBJECTIONS IN JULY AND ANOTHER

ON THE 28TH OF LAST MONTH.

BOTH STRESSING THAT ILLINOIS IS

SPENDING $2 MILLION A DAY PAYING

INTEREST.

REPUBLICANS OFTEN USE THE

FIGURE, TOO, DURING THE BUDGET

IMPASSE.

WHILE IT WOULD NOT WIPE IT OUT

IT COULD MAKE A DENT AND ENABLE

THE STATE TO STOP ACCRUING

INTEREST.

MENDOZA SAYS THE GOVERNOR'S

OFFICE GAVE NO RESPONSE TO HER

LETTERS.

INSTEAD OF GOING FORWARD HE IS

DRAGGING HIS FEET.

>> WHAT DOES THE GOVERNOR HAVE

TO SAY?

>> FUN NEW YOU ASK.

HE HELD A PRESS CONFERENCE AND I

ASKED HIM WILL YOU COMMIT TO

MOVING ON THIS BOND ISSUE?

HERE WAS HIS RESPONSE?

>> BORROWING ON STOP OF THE

SPENDING BEHAVIOR OF THE STATE

GOVERNMENT IS NOT AN OPTIMAL

ANSWER.

WE WILL BE WORKING TO REFINANCE

CERTAIN DEBT.

BUT, AGAIN, ONE OF THE FLAWS IN

OUR CURRENT BUDGET IS THERE WAS

NO APPROPRIATION FOR PAYING DOWN

DEBT.

AND TO GO TO MARKET AND TELL

BOND BUYERS, HEY, WE DON'T HAVE

A BALANCED BUDGET EVEN NOW AND

WE HAVE NOT MADE ANY

APPROPRIATIONS TO PAY DOWN DEBT,

WE NEED A PLAN TO REPAY THE

DEBT.

OTHERWISE WE SHOULDN'T BE GOING

OUT TO A BORROWER AND ASKING FOR

MORE FINANCING.

>> SO TO CODE THAT, IT CERTAINLY

DOESN'T SOUND LIKE THE GOVERNOR

IS ANY HURRY TO GET IT DONE NOW

OR MAYBE EVER.

ANOTHER REPORTER ASKED RAUNER IF

YOU CAN BORROW THE A4% INTEREST

INSTEAD OF PAYING 12%, DOESN'T

THAT SAVE THE STATE MONEY, WHY

NOT GO FOR IT?

HE REPEATED WHAT YOU JUST HEARD.

I THEN TRIED ASKING BOTH RAUNER

AND SPOKESWOMAN WHAT HE MEANT BY

REFINANCING CERTAIN DEBT.

I DID NOT GET A DIRECT ANSWER.

HIS SPOKESMAN SAID THAT RAUNER

WORKED WITH THE COMPTROLLER TO

ADDRESS THE BACKLOG AND THAT THE

GOVERNOR'S OFFICE IS WORKING TO

SAVE TAXPAYER DOLLARS TO CUT

DOWN ON FUTURE DEBT.

THE GOVERNOR'S OFFICE SAID THAT

THE COMPTROLLER DOES HAVE THE

ABILITY TO BORROW $600 MILLION

FROM CERTAIN STATE FUNDS AND USE

THAT MONEY TO PAY DOWN THE BILL

BACKLOG.