| Present delays are running about 30 days late but you can
anticipate longer delays during September and October because the state is
once again behind in revenue collections. Cash on hand as of today
(September 12, 2002) is $50M while liabilities are around $600M with nothing
left from the $1B loan. While some of the bell weather states such as
California and Texas are reporting a gradual recovery from the recession,
Illinois usually takes longer to get into a recession and longer to come out
of it. Our corporate and personal income taxes are still running under what
had been predicted, causing the cash flow problem. The Comptroller has not
yet ruled as to whether DHS payments are covered by the Prompt Payment Act
although is assumed that he will include them. Previously neither DHS grants
not fee for services payments have been included in the Act but he
Comptroller and the Director of Central Management Services can make that
decision. The Director of CMS just took early retirement so it will be up to
the Comptroller.
Although the amount of interest you pay on bank loans does not bear on
the 1% per month you would receive under the Act for payments later than 60
days of having been received in good order by DHS, you should keep track of
the interest, particularly in the coming year, for legislative purposes. |
Illinois
