lasting budget impasse, caused by legislative Democrats’ resistance to
Republican-led reforms, is impacting Illinois in many ways: from social
services to the business climate; to concern about state credit; to further
blemishes on the state’s reputation.
at least one group of Democrat insiders is cashing in. A
report from the Chicago Sun Timesshows a company called the Vender
Assistance Program (VAP), owned by Brian Hynes (who once worked for House
Speaker Madigan) and Democrat insider Patti Solis Doyle, has pocketed more than
$22 million from the state thanks to a special agreement on the collection of
short, when the state is late in paying a vendor by more than 90 days, it owes
an interest rate of 1% per month on top of the owed amount.
Vendor Assistance Program, started under then-Governor Pat Quinn, uses
financing agreements to pay the vendor 90% of their owed claim, as a “sale” of
the unpaid bill. When the state makes good on that bill, the VAP gives the
vendor the remaining 10 percent, and keeps the late fees for itself.
far, the Vender Assistance Program has received $22.3 million in late fees,
according to the report.
currently has more $6.4 billion in unpaid bills.