(Springfield, IL) — Illinois Treasurer Dan Rutherford and Comptroller Judy Baar Topinka can both agree on a plan to merge their offices, but short-term borrowing is a different thing.

Republicans opposed Gov. Pat Quinn‘s plan to borrow $8.75 billion to help the state pay off its debt of $9 billion to $10 billion. Quinn wants to borrow $2 billion in short-term loans to help pay the state’s backlog of bills.

Any short-term borrowing must win the OK from both financial offices.

Rutherford, a Republican, met privately with Quinn, a Democrat, and his budget office staff. Rutherford said he told the governor he doesn’t approve of a multi-billion dollar borrowing plan, which would require repayment with interest at the end of 14 years.

“I told him I don’t support the $8.7 billion borrowing plan; 14-year payment ballooned at the end,” Rutherford said. “I said ‘I don’t support any of that stuff, but I will work with you on short-term borrowing, which I can either sign-off on that or not.’”

States were provided with about $80 billion from the federal stimulus fund, which provides an enhanced Medicaid match rate to hospitals and nursing homes if states make payments within 30 days. Since March 31, Illinois’ match dropped from 59 percent to 57 percent early this month. By July 1, the match will drop to 50 percent.

(more…)