IL ends FY 12 in better financial shape

Published 07/01 2013 09:33PM

Updated 07/02 2013 11:21AM

SPRINGFIELD -- Illinois could be in better financial shape thanks to unanticipated revenue that came in April 2013. But that surge of extra income could be short-lived.

 The State of Illinois finished the fiscal year with fewer unpaid bills than expected. Illinois Comptroller, Judy Barr Topinka says several factors led that effort.

 "Because the economy was good, we got some money coming in that we didn't expect, $1.3 billion," Topinka said. "We got some federal funds that were due us, that was another one shot deal, that came in at the same time and it was the end of tax season."

That one-time shot was so good it dropped the outstanding debt which Topinka says is out of the norm for Illinois.

 "That got us down to the $6 billion area which is, for us, pretty darn good," Topinka said.

But Topinka says with Illinois' unresolved pension crisis, that number will just keep going up, and without a law on the books, the state's economy could only worsen.

"We have to come up with a solution to the pension crisis because ultimately they're at 22% of our budget right now, and if we don't solve it, it will be more of our budget and pretty soon there won't be any money left for anything else," Topinka said.

That number is expected to grow to $7.5 billion by August and then upwards of $9 billion by December.

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