Mike Flannery reports on the dire fiscal situation in The Land of Lincoln:

The State of Illinois’ pile of unpaid bills has grown to a record-breaking $3 billion. Comptroller Dan Hynes said Tuesday it’s never before been this bad at this point in any previous fiscal year…

The comptroller reported corporate income tax receipts down $77 million for July through September; sales tax receipts, down $244 million; personal income tax receipts, down $251 million.

One result: the typical creditor must now wait three months to be paid by the state, compared to a two-month wait at this time last year.

New York is also facing more budget cuts. One wonders if more states will eventually be forced to follow California’s lead and issue IOUs.