If local governments and school administrators knew for sure when the state was going to pay them, they could plan for it.
But after several years of disappointments and sporadic payments, Macon County officials say they are forced to prepare for the reality that the state will not keep its financial obligations; at least, not on time. This has caused the elimination of programs or projects, forced at least one local government to borrow money and, at the very least, thrown a wrench in administrators' efforts to manage their budgets responsibly.
"We budget that they'll be about four to six months behind in payments. That's our new way of budgeting," Decatur City Manager Ryan McCrady said.
As of mid-September, the state owed the city $1,452,663, according to the Illinois Comptroller's Office. But McCrady said that's not nearly as bad as last year, when the state was behind in payments by nearly $3 million, about 6 percent of the city's general revenue.
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The city needs cash on hand to pay its bills, so McCrady said he has been forced to make cuts in other places, including laying off 15 people and not funding the city's capital plan for two years in a row.
"These are real, real effects on our operations," he said. "... It has a ripple effect. We're not doing $2 million in capital work every year. That's $2 million worth of work, employment, purchasing that's not going on in our community."
Records indicate the state owes the county $635,070, with about $268,000 of it owed to the Macon County Health Department.
Julie Aubert, health department administrator, said the department has eliminated three programs, cut its hours of operation and left the equivalent of 17½ full-time positions unfilled over the past few years.
Some measures were in response to budget cuts, but Aubert said the state's delay in paying for some programs has also caused problems.
"We do have certain programs that we have not been paid for at all since March," she said. "What the state is doing, I think what they're trying to do, is not pay for a while, hoping people don't give up the programs, and then give you a check.
"Obviously, we don't want to cut our services, but we can't continue to do things without payment."
For Decatur Township Supervisor Duane Potter, the state's delayed payments mean more problem-solving than usual.
"This is as difficult as a financial juggling as I've ever been in," he said.
The township received word in June that after July 1, the state would no longer send it some $1 million in funding to continue the General Assistance program.
Township officials immediately moved to disband two aspects of the program and lay off employees, but they are required by law to provide some of the services.
Additionally, the state still owed the township for the services the township provided before July 1. Potter said the township always took out a "tax anticipation warrant," essentially borrowing against the taxes it expects to receive, and then repaid it when the state provided reimbursement.
But when the state did not pay on time, the township was forced to use its property tax money to pay off the loan, then take out another loan to be able to operate. Township officials don't expect to be paid until the end of the year for work done in June.
State records indicate $110,950 owed to the township as of mid-September, though Potter said his records reflect a larger amount.
"With the tax anticipation warrant, if they reimburse us what we've got, then we come out whole," Potter said. "If they don't, then we're in the hole. We're just never going to be able to catch up."
School districts play a similar balancing game, but they must often rely on reserves to keep them afloat for months at a time.
Records show that the state owed the Decatur School District $4,630,631 on Sept. 8. But Todd Covault, the district's director of business affairs, said the state has made several payments recent months that put it closer to $1.4 million.
Funding for transportation, early childhood and special education are among the big-ticket items. Covault said the district has 68 days' worth of cash on hand and it must draw on those reserves when the state gets behind.
"You've got to kind of hold tight on how much cash you have on hand because you can't completely depend on the state to make payments on a timely basis," Covault said. "... If we deplete our cash, then we will have to borrow to pay bills."
And, he added, "It's not exactly the easiest market to borrow in right now."
Conservative budgeting has also been key for the Mount Zion School District, Superintendent Travis Roundcount said. The state owed the district $605,269 in September, though officials say the number is now closer to $225,800.
Roundcount said the district typically plans not to receive some of its expected payments from the state until the fiscal year after they are due. Transportation costs pose a particular problem, he said.
"Since essentially those come by quarterly payments, and ours may be $125,000 each, if you don't get one, it's not like you're going to be close to balancing," he said.
But Roundcount said district officials have reduced spending as much as possible over the past few years and will be able to handle it if the state is a few months late.
"It's just if they start cutting payments completely or reducing funding is when it has a bigger effect on us," he said.
Meredian School District Superintendent Roy Smith compared the district's reserves to a credit card: They can use it in a pinch, but eventually, it'll be maxed out.
The state owed the district $358,859 in mid-September.
"There's no way to know how long you can hang on," he said. "We always assume we're going to receive what's promised. If that happens, we'll be in fine shape. We can wait a little bit.
"Unfortunately, we keep waiting for larger and larger amounts."
None of the officials expressed strong hope that the situation would turn around any time soon.
"It's like trying to turn an aircraft carrier," McCrady said. "It's not going to turn on a dime. It'll take awhile to turn around."
Aubert said the situation likely will force health departments and other agencies to change the way they do business, allowing them to be less dependent on the state.
"Collaboration with other entities has always been here, but I think you're going to see more of that," she said. "... I think that with funding as it is, we're going to have to take a more proactive approach, maybe more partnerships with the private sector. It's hard to tell."
