Illinois Partners Applauds Introduction Of HB6240 To Support Debt Restructuring

CHICAGO, Nov. 8, 2012 /PRNewswire-USNewswire/ -- Yesterday, Rep. Esther Golar (D-Chicago) introduced HB6240 to advance debt restructuring in the State of Illinois. Illinois Partners supports efforts to refinance Illinois's debt and ensure human service providers, as well as small businesses, hospitals, school districts, local governments, and universities are paid the over $4 billion they are owed by the State in past due bills. 

"We must work together to make certain human service providers and all others owed money by the State are paid what they are due," said State Representative Esther Golar. "It is our responsibility as elected officials to ensure Illinois residents have the strong communities they deserve."

Under HB6240, the State will be authorized to issue general obligation bonds with a low interest rate for sale to the public. The money generated from the selling of bonds will go exclusively to the payment of past due bills and also save the state millions of dollars in interest payments accruing on its delinquent bills.

The human service community, as well as the many others owed money by the State, are carrying the burden of Illinois's debt. In a recent survey of its members, Illinois Partners found that 57.3% of providers are currently owed money by the state, and of those providers, 47.5% are at risk of closing programs within the next four months and 1 in 5 believe they are at risk of shutting down entirely.

"The delays in payments risk the financial health of direct service organizations and jeopardize their ability to continue to provide high quality services for communities in need. This in turn creates tremendous instability at the community level because agencies must constantly restructure to meet payroll," said Maria Pesqueira, CEO and Executive Director of Mujeres Latinas en Accion. "Debt restructuring would help these organizations receive payments for state-funded services on-time; allowing them to keep their doors open and continue serving the community." 

Illinois Partners supports HB6240 to ensure our provider community, as well as the state's small businesses, hospitals, school districts, local governments, and universities are paid what they are owed by the State. Illinois residents need to know they can rely on strong community resources to teach their children, provide adult education, and keep them healthy and safe.

Illinois Partners for Human Service is a state-wide organization of over 700 members who are located in every legislative district in Illinois. We organize the human service sector and influence public policy in order to win sustainable outcomes to ensure quality services, adequate funding, and measurable results.

SOURCE Illinois Partners for Human Service