Crespo’s Monumental Debt Transparency Law Goes into Effect

SPRINGFIELD, Ill. – Legislation sponsored by state Rep. Fred Crespo, D-Hoffman Estates, that transforms the way state agencies manage their finances and reveals the full extent of the state’s debt obligations has gone into effect as of Jan. 1, 2018.

“As policymakers, we need up-to-date financial information when making decisions that will affect the lives of millions of people,” Crespo said. “Under the governor’s watch, the backlog of unpaid bills increased to over $15 billion. The Debt Transparency Act is a necessary step in the right direction as we work to restore stability to the state’s finances.”

Crespo’s House Bill 3649 will 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 as a result, millions of dollars in penalty fees are accruing on the state’s overdue bills. Crespo’s House Bill 3649 was rated as the Better Government Association’s top rated reform of the year.

“The governor’s veto of this legislation communicated to taxpayers that in contrast to popular belief, he’s actually opposed to transparent, fiscally responsible government,” Crespo said. “Taxpayers deserve better, so I am thankful for the overwhelming bipartisan support that helped enact this crucial legislation into law.”