•June 15, 2016•

The state of Illinois earned $7.8 million less in investment income the first quarter of 2016 as a result of the budget impasse, Illinois Treasurer Michael Frerichs said today. That translates into projected missed earnings of $31.2 million for 2016.

Threats of unplanned fund sweeps and the need to pay court-ordered bills required the treasurer’s office to make short-term investments that prioritized cash availability rather than longer-term, higher-yielding investment opportunities.

“A budget is a spending plan. Without a spending plan, it is very difficult to know what money is needed for basic government operations and what money for normal investments,” Frerichs said. “The law requires us to have money available to pay bills. The inability to adequately plan investments rips money out of the pockets of every person in our state, especially hurting those on the margins such as the poor, senior citizens, and children.”

Metropolitan Family Services of Chicago is among the service providers that essentially has lent the state of Illinois money because the state has not paid its bills.     Login or Subscribe to read the rest of this story.