The state is $5 billion behind in paying its bills and nearly $1 billion is owed to school districts.
The state is $5 billion behind in paying its bills and nearly $1 billion is owed to school districts. Only the state of California is as worse off financially as Illinois, lawmakers said. “At this point we need to look at every possible avenue to raise cash before we go bankrupt,” said state Sen. Rickey Hendon, D-5th Dist. The overall deficit has ballooned to $13 billion, which includes indebtedness of $775 million to public universities and community colleges. The University of Illinois in Champaign has informed professors that unless the state makes a payment soon they would have to take 10 unpaid days off. According to university officials, the school is owed $436 million by the state. Elementary and high school districts are affected, as well. The State Board of Education estimates it is owes Chicago Public Schools about $100 million for special education and transportation. Gov. Pat Quinn has proposed raising the state income tax to generate more revenue to help Illinois pay down its debt. Previously, the budget for the Monetary Assistance Program was reduced to $198 million from $380 causing fear among 138,000 low-income students that they may not be able to return to school for the spring semester due to a lack of financial aid. But Quinn recently signed legislation that increased funding to the MAP by $200 million. Senate Bill 1180 will allow Quinn to use part of his more than $1 billion in discretionary funding to make up for the MAP grant shortfall. “It is important to our state to continue this program,” said Quinn. “After all, we (the state) believe in a culture of life, long learning.”
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