(Photo courtesy www.ilga.gov)
By Illinois News Network
SPRINGFIELD – If the state’s budget impasse continues much longer the state Treasurer may have to close out investment accounts with assets of more than $10 billion leading to a loss of any potential earnings.
That’s just one of several concerns raised in a letter from Treasurer Michael Frerichs to Gov. Bruce Rauner, other constitutional officers and legislative leaders. In the letter obtained by Illinois News Network the treasurer says the current budget impasse, entering its fourth month, could disrupt banking activities for State agencies’ abilities to deposit or accept checks, cash, or electronic funds, including federal funds.
The note also says there could be disruption of investment operations including lack of payment to vendors prompting the possible sell off of $10.1 billion in investments. Frerichs says that would mean a significant loss of investment earnings and potential loss of principal
Frerichs also raised concerns about the start of a new microchip credit card standard that state agencies don’t have compliant terminals for because of a lack of appropriation.
“this is unnecessarily exposing the state to risks and could create a significant liability for already stretched government agencies, ” Frerichs said.
Rauner’s office confirms receiving the letter.
