Synopsis As Introduced Amends the State Budget Law of the Civil Administrative Code of Illinois. Requires that the Governor's submitted budget include information concerning the amount and description of overdue bills and invoices under the State Prompt Payment Act. Amends the Prompt Payment Act. Accelerates the payment period from 60 days after the bill is submitted to 30 days after the bill is submitted. Increases the interest penalty from 1% to 1.5% if the payment is not made within 60 days after the bill is submitted. Effective immediately.
HB 5898 will not have any fiscal impact on any public pension fund or retirement system in Illinois.
State Debt Impact Note (Government Forecasting & Accountability)
HB 5898 would not change the amount of authorization for any type of State-issued or State-supported bond, and, therefore, would not affect the level of State indebtedness.
Fiscal Note (Office of the Comptroller)
The Office of the Comptroller is unable to project the future cost of this legislation since it would require information known at the agency level about the timing when invoices are properly submitted to an agency and when an agency in turn submits vouchers to the Office of the Comptroller for payment. Furthermore, the Office is not in a position to assume whether or not an agency will acknowledge late interest penalties are owed and submit the appropriate late-interest penalties are owed and submit the appropriate late-interest penalties allowable under the State Prompt Payment Act to the Office for payment. However, the Office can provide historical and current payments made pursuant to the State Prompt Payment Act. In fiscal year 2006, $1,124,638.30 was paid, while $2,954,274.87 was paid in fiscal year 2007. In fiscal year 2008, to date, late interest penalties of $20,590,233.09 have been submitted and paid by the following agencies: Healthcare and Family Services = $20,267,808.31; Central Management = $245,195.55; Transportation = $18,803.28; State Board of Education = $12,395.71; Human Services = $10,056.82; State Police = $8,652.01; Natural Resources = $7,115.60; Secretary of State = $4,225.22; Capital Development Board = $4,063.15; Agriculture = $2,953.98; IL Mathematics and Science Academy = $1,951.56; Supreme Court = $1,640.60; Corrections = $1,184.94; Revenue = $1,057.07; Commerce and Economic Opportunity = $951.61; Veterans' Affairs = $946.40; Attorney General = $517.73; Office of the State Fire Marshal = $216.54; State Attorney's Appellate Prosecutor = $191.46; Public Health = $85.47; Deaf and Hard of Hearing Commission = $80.04; Historic Preservation Agency = $56.76; Military Affairs = $55.60; Legislative Audit Commission = $27.68.
Balanced Budget Note (Office of Management and Budget)
HB 5898, if enacted into law, will lead to an unbalanced budget for Fiscal Year 2009 because revenue to support the legislation is not provided. Multiple State agencies would be negatively impacted if House Bill 5898 in enacted into law, including without limitation the Department of Healthcare and Family Services ("DHFS"), the Department of Transportation, and the Governor's Office of Management and Budget. As an example, DHFS estimates that the additional interest penalties imposed by House Bill 5898 would have a minimal impact of $20 million in Fiscal Year 2009. Alternatively, in order to comply with the 30 day deadline for DHFS alone, the State would require over $500 million in additional revenue Fiscal Year 2009. Finally, House Bill 5898 would place additional burden upon the Governor's Office of Management and Budget with respect to the compilation, storage, and production of data related to overdue bills and invoices.