Bankrupt? But I Have Lots of Checks Left!

Jun 19, 2017

The financial situation in Illinois continues to deteriorate. New court orders stemming from lawsuits filed by state suppliers require the Comptroller to pay out more than the state receives in revenue each month.

The state is sitting on $15 billion in overdue bills and has the lowest credit rating of any state. The threat of being further downgraded to junk status hangs over the state’s bonds. The state is negotiating deals with creditors to lower the penalties it will pay if the states’ credit rating drops to junk status. Contractors in the state have been told stop working on the roads other than what is required for safety.

The next fiscal year for the state begins July 1.