Thursday, January 19, 2012

Ilinois Raise Income Taxes 67% and still $8.5B in Debt

Topinka: Illinois’ Unpaid Bill Crisis Just Keeps Getting Worse « CBS Chicago

SPRINGFIELD, Ill. (CBS) — Illinois keeps falling farther behind on its

As WBBM Newsradio’s Regine Schlesinger reports, officially, the state
has a backlog of more than $4.25 billion in unpaid bills.

But Illinois State Comptroller Judy Baar Topinka says when one factors in other bills, the figure is closer to around $8.5 billion.

Those other outstanding bills include tax refunds, employee health insurance, and bills that have not yet reached her desk.

Topinka says this is extremely disappointing, since a year ago, the state
sharply increased income
taxes (by 67 percent) and corporate taxes.

“After the largest tax hike in our history, the state continues to be in this precarious fiscal position with persistent payment delays, and frankly, the situation is unlikely to significantly improve in the
near term,” she said.

Some state officials say the solution is more borrowing to pay the bills, but Topinka says the solution is to cut spending.