Illinois Fiscal Crisis
CVN News
01-18-2010
The state of Illinois is in a very difficult financial
situation. The state not only has a $5.7 billion deficit,
it is not paying many of its bills.
The state owes the University of Illinois over $400 million
dollars. There are fears that the University won`t be
able to make payroll in March without some action.
It is reported that some state employees are having to
pay their medical bills when they receive services
because doctors aren`t being paid by the state.
The state owed $5.1 billion in unpaid bills at the end
of 2009. That number doesn`t include an estimated
$1.4 billion in Medicaid and group health care bills
that haven`t been processed and another $2.25 billion
in short-term loans that are due.
Jim Nowlan, senior fellow at the University of Illinois`
Institute of Government and Public Affairs describes
the situation as, `I would describe bankruptcy as the
inability to pay one`s bills.`
Legal experts believe that cities and counties
can declare bankruptcy but that states can`t.
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