Crespo Urging Governor to Sign Monumental Debt Transparency Reform

SPRINGFIELD, Ill. – As Illinois’ estimated bill backlog just increased from $13.3 billion to a record $14.3 billion, state Rep. Fred Crespo, D-Hoffman Estates, is calling on Gov. Rauner to sign legislation that would reform how state agencies manage their finances and reveal the full extent of the state’s debt obligations.

“The recent $1 billion jump in liabilities that was reported by the Governor’s Office of Management and Budget is beyond unacceptable and precisely why regular reporting of liabilities is necessary,” Crespo said. “In order to work together on a budget, legislators cannot be kept in the dark about how much is actually owed to schools, social service organizations, health care providers, vendors, small business owners and others across the state.”

Crespo’s House Bill 3649 would require agencies to report monthly to the comptroller the liabilities they are holding, plus an estimate of the amount of late interest penalties that will be paid on those bills. According to the comptroller’s office, liabilities are not being reported quickly enough, and it is projected that Illinois will owe at least $800 million in late fees on its overdue bills by the end of the current fiscal year. By reforming how state agencies report their liabilities, Crespo’s legislation would ensure that taxpayers do not end up paying more than they already have because of financial mismanagement.

“Governor Rauner should sign this bipartisan transparency initiative. Taxpayers deserve to know the true scope and cost of the state’s bill backlog, and policymakers need this vital information as they are making budget decisions,” Comptroller Susana Mendoza said. “It’s time for a full accounting of what the state owes to schools, social service organizations, health care providers, vendors, small business owners and others across the state.”

House Bill 3649 passed both the House and Senate with bipartisan support, and now heads to the governor for consideration.

Crespo represents the 44th District, which includes all or portions of Bartlett, Elgin, Hanover Park, Hoffman Estates, Schaumburg and Streamwood.