By Jamey Dunn
Minority borrowers in Illinois may be eligible for compensation under a settlement with now-defunct Countrywide Financial over its discriminatory lending practices. But they have only a few days left to submit paperwork to get a piece of the settlement.
Bank of America, which bought Countrywide in 2008, has agreed to pay $335 million to customers affected by the racial discrimination committed by the former lender when making home loans. The U.S. Department of Justice sent letters and claim forms to the more than 200,000 people nationwide who are eligible for compensation. To receive a check, those eligible must submit their forms by March 29, this Friday.
“The relief obtained in this settlement is crucial for borrowers who’ve paid far too high a price for the risky, discriminatory lending practices Countrywide employed in the buildup to the housing collapse,” said Illinois Attorney General Lisa Madigan, who filed a discrimination suit against Countrywide in 2011. “I encourage anyone who has received information from the settlement administrator to act quickly to submit their claim before the deadline.” Madigan’s suit was ended by the federal settlement, which calls for at least $20 million to go to Illinois.
The DoJ says during that between 2004 and 2008, Countrywide lenders charged minority borrowers more in fees and other costs. According to the settlement, black and Hispanic borrowers were also more than twice as likely to end up with expensive subprime loans with ballooning interest rates than white borrowers with similar credit scores. “The steered Hispanic and African-American borrowers [who got subprime loans] paid, on average, thousands of dollars more for their loans and were subject to possible prepayment penalties, increased risk of credit problems, default, and foreclosure,” said the federal complaint.
The settlement applies to 41 states and the District of Columbia. But the DoJ focused in on Chicago as one of the examples used in its complaint against Countrywide. “In 2007, Countrywide charged a retail customer in Chicago borrowing $200,000 on average about $795 more in non-risk-based pricing adjustments if he were Hispanic, and an average of about $460 more if he were African-American, than the average amount charged to a non-Hispanic white borrower,” the compliant said. The DoJ said that at the same time, African-American and Hispanic borrowers in Chicago were also paying about $1,000 more in fees than white borrowers on the same kind of loan.
The letters sent to those eligible for the settlement included a minimum amount that borrowers can expect to receive. The payouts range from $200 to $15,000. The higher amounts will go to the more than 12,000 people who were given sub-prime loans despite their solid credit histories. The final amount each borrower would receive will be determined by how many people respond by the deadline, after which the settlement will be sliced up among those that submitted to proper paperwork.
Borrowers who have questions, need help with their submission or need a new claim form should contact Independent Settlement Administrator Rust Consulting Inc, a contractor hired by DoJ to oversee the settlement. The administrator can be reached at (800) 842-5148 or by email at countrywide.settlement@usdoj.gov.
Illinois residents can also call Madigan’s Homeowner Helpline at (866) 544-7151. For more on the settlement, see Illinois Issues February 2012.
The Countrywide discriminatory lending settlement is not to be confused with the $26 billion foreclosure settlement approved in 2012. That agreement came in response to the nation’s largest lenders engaging in sloppy and sometimes fraudulent foreclosure practices, such as signing off on documents without verifying information, a practice known as robo-signing. Illinois is expected to receive $1 billion in that settlement, and most of the money is supposed to go toward keeping struggling borrowers in their homes.
Showing posts with label Foreclosures. Show all posts
Showing posts with label Foreclosures. Show all posts
Wednesday, March 27, 2013
Thursday, February 09, 2012
Illinois to get $1 billion in foreclosure settlement
By Jamey Dunn
Under a national settlement reached by states and five of the nation’s largest banks, Illinois would get $1 billion in relief for borrowers whose homes are in danger of foreclosure.
The $26 billion settlement announced today came in response to the nation’s largest lenders engaging in sloppy and sometimes fraudulent foreclosure practices, such as signing off on documents without verifying information, a practice known as robo-signing. Sketchy and sometimes nonexistent paperwork led to errors, miscommunication and cases of mistaken identity. It created a bureaucratic nightmare for those trying to work with banks to find a way to stay in their homes. (For more on robo-signing and the issues that led up to today’s settlement, see Illinois Issues March 2011.)
“Many companies that handled these foreclosures didn’t give people a fighting chance to hold onto their homes,” President Barack Obama said at a Washington, D.C., news conference today. “In many cases, they didn’t even verify that these foreclosures were actually legit. Some of the people they hired to process foreclosures used fake signatures on fake documents to speed up the foreclosure process. Some of them didn’t read what they were signing at all.”
The settlement was reached between federal regulators, many of the states' attorneys general and Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank, formerly GMAC. Illinois Attorney General Lisa Madigan was a key player in the negotiations. “After many months of investigation and negotiation, I’ve concluded that this settlement accomplishes two major goals: It provides timely help for struggling homeowners, and it establishes new rules for mortgage servicing that will protect homeowners in the future,” Madigan said in a prepared statement.
Most of the money will go toward efforts to keep borrowers in their homes. Those who cannot make their payments may be eligible to refinance their homes at better interest rates than their original loans. Homeowners whose houses are “under water,” which means a home is worth less than what the homeowner owes on it, could be eligible to have the amount they owe reduced. Borrowers who lost their homes between 2008 and last year could be eligible for up to $2,000 if they were victims of shoddy foreclosure practices. According to the Chicago-based Woodstock Institute, 400,000 homes are under water in the Chicago area alone, and about 800,000 are in danger of becoming under water if the housing market takes another downward turn. The average Chicago-area homeowner in an under-water house owes about $61,000 more than the home is worth. Banks have three years to dole out benefits from the settlement and face further penalties if they do not.
The deal also sets out new rules for banks and mortgage servicers. They will be required to consider making a deal known as a loan modification with borrowers in danger of losing their homes instead of dismissing such requests outright. Borrowers will be able to appeal if a bank refuses to work with them. While a bank is considering a modification, it cannot foreclose on a home. Previously, homeowners faced such conflicting signals as having a bank agree to a modification, only to turn around and foreclose shortly after. “It’s been a very real concern for borrowers and for housing volunteers, and there’s been a lot of frustration with this [practice],” said Tom Feltner, vice president of the Woodstock Institute. Feltner said that while the settlement will not make all of those touched by the banks negligent practices whole, it is a positive step toward changing the system. Previous efforts, including a federal program to get banks to modify loans, have come up short, but Feltner said the settlement would require banks to “build loan modifications into their business practices.”
Dawn Dannenbring, an organizer for the Bloomington-based community advocacy group Illinois People’s Action, said that although the settlement comes with what seems like a large price tag, it does not make a dent in all the damage caused by the banks. “The $25 billion is just a drop in the bucket.” Some important details of the plan remain unclear, she said. “Who decides who gets the money?” Dannenbring said her group opposes allowing the banks to make such choices. “The banks have already had the opportunity to do right,” she said. One bright spot of the settlement, she said, is that it does not grant banks immunity from investigation and litigation going forward, something that was discussed during negotiations. “We think that is the best part of this settlement deal.”
Obama has created a special task force to investigate the issues surrounding the housing crisis. “We’re going to keep at it until we hold those who broke the law fully accountable,” he said. He emphasized that today’s settlement does not close the book on the housing market collapse. “No compensation, no amount of money, no measure of justice is enough to make it right for a family who has had their piece of the American dream wrongly taken from them. And no action, no matter how meaningful, is going to by itself entirely heal the housing market, but this settlement is a start.”
Madigan echoed his statement. “While the settlement is a big step forward in our efforts, it is not the end. In Illinois, we will continue to take strong legal action against lenders, banks, servicers and others who contributed to the housing and economic collapse,” she said.
Feltner said that Illinoisans who think they might qualify for help through the settlement should talk to a counselor who is certified by the U.S. Department of Housing and Urban Development. “The best advice is free advice. You don’t need to go to an agency offering to help with your foreclosure issues for a fee.” Madigan urged those who have questions or are interested in seeking relief from the settlement to call a toll-free hotline: (866) 544-7151; visit her website, www.illinoisattorneygeneral.gov/consumers/bankforeclosuresettlement.html, or the federal site, www.nationalforeclosuresettlement.com.
Under a national settlement reached by states and five of the nation’s largest banks, Illinois would get $1 billion in relief for borrowers whose homes are in danger of foreclosure.
The $26 billion settlement announced today came in response to the nation’s largest lenders engaging in sloppy and sometimes fraudulent foreclosure practices, such as signing off on documents without verifying information, a practice known as robo-signing. Sketchy and sometimes nonexistent paperwork led to errors, miscommunication and cases of mistaken identity. It created a bureaucratic nightmare for those trying to work with banks to find a way to stay in their homes. (For more on robo-signing and the issues that led up to today’s settlement, see Illinois Issues March 2011.)
“Many companies that handled these foreclosures didn’t give people a fighting chance to hold onto their homes,” President Barack Obama said at a Washington, D.C., news conference today. “In many cases, they didn’t even verify that these foreclosures were actually legit. Some of the people they hired to process foreclosures used fake signatures on fake documents to speed up the foreclosure process. Some of them didn’t read what they were signing at all.”
The settlement was reached between federal regulators, many of the states' attorneys general and Bank of America, JPMorgan Chase, Wells Fargo, Citibank and Ally Bank, formerly GMAC. Illinois Attorney General Lisa Madigan was a key player in the negotiations. “After many months of investigation and negotiation, I’ve concluded that this settlement accomplishes two major goals: It provides timely help for struggling homeowners, and it establishes new rules for mortgage servicing that will protect homeowners in the future,” Madigan said in a prepared statement.
Most of the money will go toward efforts to keep borrowers in their homes. Those who cannot make their payments may be eligible to refinance their homes at better interest rates than their original loans. Homeowners whose houses are “under water,” which means a home is worth less than what the homeowner owes on it, could be eligible to have the amount they owe reduced. Borrowers who lost their homes between 2008 and last year could be eligible for up to $2,000 if they were victims of shoddy foreclosure practices. According to the Chicago-based Woodstock Institute, 400,000 homes are under water in the Chicago area alone, and about 800,000 are in danger of becoming under water if the housing market takes another downward turn. The average Chicago-area homeowner in an under-water house owes about $61,000 more than the home is worth. Banks have three years to dole out benefits from the settlement and face further penalties if they do not.
The deal also sets out new rules for banks and mortgage servicers. They will be required to consider making a deal known as a loan modification with borrowers in danger of losing their homes instead of dismissing such requests outright. Borrowers will be able to appeal if a bank refuses to work with them. While a bank is considering a modification, it cannot foreclose on a home. Previously, homeowners faced such conflicting signals as having a bank agree to a modification, only to turn around and foreclose shortly after. “It’s been a very real concern for borrowers and for housing volunteers, and there’s been a lot of frustration with this [practice],” said Tom Feltner, vice president of the Woodstock Institute. Feltner said that while the settlement will not make all of those touched by the banks negligent practices whole, it is a positive step toward changing the system. Previous efforts, including a federal program to get banks to modify loans, have come up short, but Feltner said the settlement would require banks to “build loan modifications into their business practices.”
Dawn Dannenbring, an organizer for the Bloomington-based community advocacy group Illinois People’s Action, said that although the settlement comes with what seems like a large price tag, it does not make a dent in all the damage caused by the banks. “The $25 billion is just a drop in the bucket.” Some important details of the plan remain unclear, she said. “Who decides who gets the money?” Dannenbring said her group opposes allowing the banks to make such choices. “The banks have already had the opportunity to do right,” she said. One bright spot of the settlement, she said, is that it does not grant banks immunity from investigation and litigation going forward, something that was discussed during negotiations. “We think that is the best part of this settlement deal.”
Obama has created a special task force to investigate the issues surrounding the housing crisis. “We’re going to keep at it until we hold those who broke the law fully accountable,” he said. He emphasized that today’s settlement does not close the book on the housing market collapse. “No compensation, no amount of money, no measure of justice is enough to make it right for a family who has had their piece of the American dream wrongly taken from them. And no action, no matter how meaningful, is going to by itself entirely heal the housing market, but this settlement is a start.”
Madigan echoed his statement. “While the settlement is a big step forward in our efforts, it is not the end. In Illinois, we will continue to take strong legal action against lenders, banks, servicers and others who contributed to the housing and economic collapse,” she said.
Feltner said that Illinoisans who think they might qualify for help through the settlement should talk to a counselor who is certified by the U.S. Department of Housing and Urban Development. “The best advice is free advice. You don’t need to go to an agency offering to help with your foreclosure issues for a fee.” Madigan urged those who have questions or are interested in seeking relief from the settlement to call a toll-free hotline: (866) 544-7151; visit her website, www.illinoisattorneygeneral.gov/consumers/bankforeclosuresettlement.html, or the federal site, www.nationalforeclosuresettlement.com.
Wednesday, June 25, 2008
Illinois targets mortgage lender
By Patrick O’Brien
Illinois is the first state to sue Countrywide Financial, the nation’s largest mortgage lender, for its role in the current foreclosure crisis.
The lawsuit, filed by Illinois Attorney General Lisa Madigan in Cook County today, alleges that the company used “deceptive practices” to lure borrowers into risky subprime loans with high interest rates. It also says the company “loosened the standards for selling its products,” ignoring whether prospective borrowers could repay the loan.
The suit says the company responded to signs that its mortgage business was unstable by making more risky loans and accelerating the practice of ignoring borrowers’ real financial situations.
The company’s practices were particularly harmful to Chicago and the surrounding counties, the suit says.
The Chicago area had the most subprime loans of any metropolitan area in the country, according to a 2006 study by the Chicago Reporter, an investigative magazine. And Countrywide held more of those loans than any other lender. The Chicago area also has one of the highest foreclosure rates in the country.
The attorney general also says her office has received more than 200 complaints about the company since 2005.
In early 2007, the company issued nearly $8 billion in risky subprime loans, which generally are given to borrowers with poorer credit histories and lower incomes than those given standard loans.
Countrywide’s promotional materials on its Web site tout the bank as a leading lender to those with “less than perfect credit.”
The company is currently the subject of lawsuits by former employees and customers, as well as a federal investigation.
Bank of America actually acquired the company in a $4 billion deal today, as approved by shareholders, and it has promised to tighten lending standards.
Countrywide did not return repeated phone calls.
State employee update
By Bethany Jaeger
The largest public employee union, the American Federation for State, County and Municipal Employees Council 31, is requesting a mediator to help bring closure to about 10 months of negotiations with Gov. Rod Blagojevich’s administration. The union represents about 35,000 state employees and held a massive rally in Springfield earlier this week, increasing attention that the union opposes a contract with the state if it were to increase the cost of employees’ health care and retirement benefits.
According to the union, the administration proposes a four-year contract that would do just that without a wage increase.
The existing AFSCME contract is set to expire June 30. The administration is not commenting on negotiations but confirmed AFSCME’s statement that the existing contract will remain active as a mediator steps into negotiations.
Anders Lindall, spokesman for the union, said the two sides first have to agree on the identity of the mediator, who would be an independent third party without a vested interest in either side. While mediators are common in other labor negotiations, Lindall said this is the first time in 10 contracts with the state that the union has had to request a mediator.
Illinois is the first state to sue Countrywide Financial, the nation’s largest mortgage lender, for its role in the current foreclosure crisis.
The lawsuit, filed by Illinois Attorney General Lisa Madigan in Cook County today, alleges that the company used “deceptive practices” to lure borrowers into risky subprime loans with high interest rates. It also says the company “loosened the standards for selling its products,” ignoring whether prospective borrowers could repay the loan.
The suit says the company responded to signs that its mortgage business was unstable by making more risky loans and accelerating the practice of ignoring borrowers’ real financial situations.
The company’s practices were particularly harmful to Chicago and the surrounding counties, the suit says.
The Chicago area had the most subprime loans of any metropolitan area in the country, according to a 2006 study by the Chicago Reporter, an investigative magazine. And Countrywide held more of those loans than any other lender. The Chicago area also has one of the highest foreclosure rates in the country.
The attorney general also says her office has received more than 200 complaints about the company since 2005.
In early 2007, the company issued nearly $8 billion in risky subprime loans, which generally are given to borrowers with poorer credit histories and lower incomes than those given standard loans.
Countrywide’s promotional materials on its Web site tout the bank as a leading lender to those with “less than perfect credit.”
The company is currently the subject of lawsuits by former employees and customers, as well as a federal investigation.
Bank of America actually acquired the company in a $4 billion deal today, as approved by shareholders, and it has promised to tighten lending standards.
Countrywide did not return repeated phone calls.
State employee update
By Bethany Jaeger
The largest public employee union, the American Federation for State, County and Municipal Employees Council 31, is requesting a mediator to help bring closure to about 10 months of negotiations with Gov. Rod Blagojevich’s administration. The union represents about 35,000 state employees and held a massive rally in Springfield earlier this week, increasing attention that the union opposes a contract with the state if it were to increase the cost of employees’ health care and retirement benefits.
According to the union, the administration proposes a four-year contract that would do just that without a wage increase.
The existing AFSCME contract is set to expire June 30. The administration is not commenting on negotiations but confirmed AFSCME’s statement that the existing contract will remain active as a mediator steps into negotiations.
Anders Lindall, spokesman for the union, said the two sides first have to agree on the identity of the mediator, who would be an independent third party without a vested interest in either side. While mediators are common in other labor negotiations, Lindall said this is the first time in 10 contracts with the state that the union has had to request a mediator.
Wednesday, April 02, 2008
Bills on the move
The Illinois General Assembly is quickly moving a lot of legislation this week since returning from a two-week spring break. Here's a sample of bills to watch, which is an addendum to the list published in Illinois Issues magazine this month:
State Board of Education revamp
HB 4232: The state's education board would be revamped and newly appointed by the governor, but he or she would have a select pool of candidates vetted and chosen by a panel of state lawmakers under a measure sponsored by Rep. Lou Lang, a Skokie Democrat and frequent critic of Gov. Rod Blagojevich's administration meddling in state agency business. He said on the House floor that while he's not pointing his finger at any education board members, “the system we have in place is a system that does not foster independent advocacy for children.”
Such opponents as Blagojevich ally Rep. Jay Hoffman, a Collinsville Democrat, said the idea of terminating all current board members goes overboard and ignores the fact that Blagojevich revamped the board during his first term. “It has been fixed,” Hoffman said during floor debate. “Unfortunately, this is a solution looking for a problem that doesn't exist. We have a better state board today than we have ever had in the State of Illinois.” Rep. Barbara Flynn Currie, a Chicago Democrat and chamber leader, also opposed the measure, saying the extra layer of bureaucracy could actually create less accountability, less transparency and less teamwork than the board has today. She said if the chief executive fails to appoint people who are up to the task, there's a place to hold that official accountable: “It's called the next election.”
The measure's future in the Senate could be bleak if Senate President Emil Jones Jr., who was a Blagojevich ally in the past, chooses not to call the measure for a vote. Lang pointed to a similar proposal he floated last year to revamp the Illinois Gaming Board in the name of making it more independent and shielded from political influence. That's still in the House, too.
Foreclosure assistance
SB 1979: Homeowners in need of financial assistance to avoid losing their homes would receive grants under a measure approved by the Senate. Sponsored by Chicago Democratic Sen. Rickey Hendon, it would allow grants to lenders if the lender agreed to freeze the foreclosure process and negotiate with the homeowner. It now goes to the House.
College campus violence
SB 1881: Bail would be denied to individuals who make terrorist threats of large-scale violence, such as the threat made last month at Southern Illinois University in Carbondale, under a measure approved by the Senate. The sponsor, Alton Democratic Sen. William Haine, said the proposal would slow down the legal process so threats of campus violence could be investigated properly.
Smoking ban exemptions
SB 2006: Another attempt to relax the state's smoking ban, this one to allow veterans' homes to permit smoking, passed the Senate. Sponsored by Rushville Democratic Sen. John Sullivan, the proposal is one of multiple attempts to change the law to allow some groups to smoke in public places.
Early childhood education
HB 5038: The state would dedicate more money to education programs aimed at children age 0 to 3 under a measure approved by the House. Funding programs for the youngest children is a growing trend as more research shows the earliest investments pay off in the long run (see Illinois Issues, April, page 6). It now goes to the Senate.
HB 4705: The House also unanimously approved an extension of Blagojevich's first-term program Preschool for All, which first funds state-sponsored preschool for children from low-income neighborhoods who are considered at risk of academic failure. The extension, albeit by only two years, would allow Illinois to extend available funding to children from middle-income families, as planned when the governor initiated the first phase.
Follow the money
HB 4765: Illinois taxpayers would have a one-stop shop to find out how their public dollars were spent under a measure unanimously approved by the House. Rep. Michael Tryon, a Crystal Lake Republican, sponsored the measure to create a Web site that would track all money spent on all districts, all state contracts, all state employees and all tax credits, and then some, to improve government transparency. His idea is modeled after Missouri's Web site, www.Mapyourtaxes.mo.gov. The state's Central Management Services estimates the cost to be $100,000 a year, according to Tryon, who rebutted that the state would save money if contractors became more competitive when bidding for state business. “In this day and age especially in Illinois, and I know we share the concern when we turn on the TV and we open up the newspaper and we're seeing the U.S. attorney saying [we have] pay to play on steroids,” Tryon said during floor debate. “We should be a leader in this, and I hope we see this in action by this time next year.”
Overdue bills
HB 5898: The governor's annual budget proposal would have to include the amount of overdue bills and would require Illinois to pay bills within a month of being submitted under a measure approved by the House 101-3. It also would increase the interest rate if the state took more than 60 days to pay the bill. Rep. David Winters, a Shirland Republican, said he supported the measure because it would help make the state budget more transparent when Illinois lacks the money to pay for new programs. Rep. Elaine Nekritz, a Northbrook Democrat, voted present and said the proposal as written doesn't allow the state enough flexibility if it had a tight cash flow, a concern shared by the governor's budget office (scroll down to see the balanced budget note).
State Board of Education revamp
HB 4232: The state's education board would be revamped and newly appointed by the governor, but he or she would have a select pool of candidates vetted and chosen by a panel of state lawmakers under a measure sponsored by Rep. Lou Lang, a Skokie Democrat and frequent critic of Gov. Rod Blagojevich's administration meddling in state agency business. He said on the House floor that while he's not pointing his finger at any education board members, “the system we have in place is a system that does not foster independent advocacy for children.”
Such opponents as Blagojevich ally Rep. Jay Hoffman, a Collinsville Democrat, said the idea of terminating all current board members goes overboard and ignores the fact that Blagojevich revamped the board during his first term. “It has been fixed,” Hoffman said during floor debate. “Unfortunately, this is a solution looking for a problem that doesn't exist. We have a better state board today than we have ever had in the State of Illinois.” Rep. Barbara Flynn Currie, a Chicago Democrat and chamber leader, also opposed the measure, saying the extra layer of bureaucracy could actually create less accountability, less transparency and less teamwork than the board has today. She said if the chief executive fails to appoint people who are up to the task, there's a place to hold that official accountable: “It's called the next election.”
The measure's future in the Senate could be bleak if Senate President Emil Jones Jr., who was a Blagojevich ally in the past, chooses not to call the measure for a vote. Lang pointed to a similar proposal he floated last year to revamp the Illinois Gaming Board in the name of making it more independent and shielded from political influence. That's still in the House, too.
Foreclosure assistance
SB 1979: Homeowners in need of financial assistance to avoid losing their homes would receive grants under a measure approved by the Senate. Sponsored by Chicago Democratic Sen. Rickey Hendon, it would allow grants to lenders if the lender agreed to freeze the foreclosure process and negotiate with the homeowner. It now goes to the House.
College campus violence
SB 1881: Bail would be denied to individuals who make terrorist threats of large-scale violence, such as the threat made last month at Southern Illinois University in Carbondale, under a measure approved by the Senate. The sponsor, Alton Democratic Sen. William Haine, said the proposal would slow down the legal process so threats of campus violence could be investigated properly.
Smoking ban exemptions
SB 2006: Another attempt to relax the state's smoking ban, this one to allow veterans' homes to permit smoking, passed the Senate. Sponsored by Rushville Democratic Sen. John Sullivan, the proposal is one of multiple attempts to change the law to allow some groups to smoke in public places.
Early childhood education
HB 5038: The state would dedicate more money to education programs aimed at children age 0 to 3 under a measure approved by the House. Funding programs for the youngest children is a growing trend as more research shows the earliest investments pay off in the long run (see Illinois Issues, April, page 6). It now goes to the Senate.
HB 4705: The House also unanimously approved an extension of Blagojevich's first-term program Preschool for All, which first funds state-sponsored preschool for children from low-income neighborhoods who are considered at risk of academic failure. The extension, albeit by only two years, would allow Illinois to extend available funding to children from middle-income families, as planned when the governor initiated the first phase.
Follow the money
HB 4765: Illinois taxpayers would have a one-stop shop to find out how their public dollars were spent under a measure unanimously approved by the House. Rep. Michael Tryon, a Crystal Lake Republican, sponsored the measure to create a Web site that would track all money spent on all districts, all state contracts, all state employees and all tax credits, and then some, to improve government transparency. His idea is modeled after Missouri's Web site, www.Mapyourtaxes.mo.gov. The state's Central Management Services estimates the cost to be $100,000 a year, according to Tryon, who rebutted that the state would save money if contractors became more competitive when bidding for state business. “In this day and age especially in Illinois, and I know we share the concern when we turn on the TV and we open up the newspaper and we're seeing the U.S. attorney saying [we have] pay to play on steroids,” Tryon said during floor debate. “We should be a leader in this, and I hope we see this in action by this time next year.”
Overdue bills
HB 5898: The governor's annual budget proposal would have to include the amount of overdue bills and would require Illinois to pay bills within a month of being submitted under a measure approved by the House 101-3. It also would increase the interest rate if the state took more than 60 days to pay the bill. Rep. David Winters, a Shirland Republican, said he supported the measure because it would help make the state budget more transparent when Illinois lacks the money to pay for new programs. Rep. Elaine Nekritz, a Northbrook Democrat, voted present and said the proposal as written doesn't allow the state enough flexibility if it had a tight cash flow, a concern shared by the governor's budget office (scroll down to see the balanced budget note).
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