Illinois Could Owe $8 Billion

The Bond Buyer reports:

Illinois could end the fiscal year owing more than $8 billion in bills, a level that underscores the need to cut spending in order to stabilize its balance sheet, Comptroller Judy Baar Topinka warned Wednesday.

The state is on pace to end fiscal 2011 on June 30 with a backlog of at least $4.5 billion. When other fiscal 2011 obligations are added after their submission in the first few months of the next fiscal year, the figure rises by $3.8 billion, including $850 million in corporate tax refunds and $1.2 billion for state employee health insurance.