Crushed by deficit, Ill. government hones new strategy for overdue bills: don’t pay them.
By APThursday, May 13, 2010
No IOUs from Ill. government, but no money either
SPRINGFIELD, Ill. — A program to help senior citizens live at home instead of moving to nursing homes has shut down. It’s the latest casualty from the state of Illinois’ failure to pay bills on time.
Officials of the Shawnee Development Council say the state owes the council about $380,000 and they can’t keep taking care of people without that money.
That’s not the only debt that Illinois isn’t paying.
State officials expect to end the fiscal year with about $6 billion in overdue bills. The same thing is planned for next year, too. Many other states are struggling with severe budget problems but Illinois’ don’t-pay strategy is a novel response.
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