Statement from Comptroller Susana A. Mendoza
April 3, 2020
Further payment delays are expected in coming weeks and months
The Illinois Office of Comptroller has received multiple inquiries as to the timing and volume of payments being released, given the circumstances related to the worldwide COVID-19 Coronavirus health emergency. Due to the severity of this impact, and the significant additional challenges it poses to the state’s finances, further payment delays are to be expected in the coming weeks and months.
State revenues, estimated at well over $1 billion, traditionally expected in the month of April due to increased seasonal income tax payment activity, will be delayed until at least July, given the extended tax payment deadlines announced by both the state and federal governments.
In addition to the deferred revenues from the filing extension, it has not yet been determined what additional negative fiscal impact reduced economic activity related to this pandemic will have on our state revenues going forward.
The most immediate priority today, and in the coming weeks, will be emergency funding for critical medical equipment and services necessary to combat the COVID-19 coronavirus on the front lines. While our immediate priority is to provide funding necessary to fight the pandemic and save lives, the core priorities of the IOC remain the same.
Healthcare, debt service, K-12 funding, state payrolls, and required pension payments will continue to be made, and the state’s most vulnerable citizens’ urgent needs will continue to be served.
As in past times of budgetary difficulties, the predictability and the timing of specific payments may be uncertain, but the provider and vendor community can be assured that, as in the past, all state payments will eventually be made, and all state commitments will be honored.
Given this reality, the IOC asks for understanding and patience as we address the impact from this pandemic, while continuing to manage an existing state bill backlog of over $7 billion.
The IOC will continue to work closely with the Governor’s Administration, the Governor’s Office of Management and Budget, the State Treasurer and other state agencies on managing our state’s finances through this crisis.