SPRINGFIELD, Ill. – It’s something the State of Illinois has been doing a lot of in recent years, and is doing again.
The state has paid back a federal COVID-19-related loan that was used to pay medical bills during the earlier part of the pandemic.
“Not only have we paid off that debt, but we paid it off two years early, which is remarkable,” said Susanna Mendoza, State Comptroller. “That will save taxpayers about $82 million in interest payments.”
Mendoza says stronger-than-expected state revenue, not other COVID-19-related money, is why the state was able to pay back the federal loan early.
“Nobody should like to see interest payments accruing,” said Mendoza, “which is essentially like setting taxpayer dollars on fire. Any chance I get to save taxpayer dollars, I’m going to try to do that. This is an opportunity for us to show fiscal discipline.”
Several years ago at the height of a state budget standoff, the state’s bill backlog reached $17 billion. Today, it’s down to about $4 billion.
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