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"A comprehensive budget plan must be passed immediately." Realizing where all this is headed, she said that payments to bond holders won't be interrupted (more below).Friday night's legal decision followed a previously discussed ruling, when on June 7, Judge Lefkow ordered lawyers for the state to negotiate with Medicaid recipients to come up with more money, but she stopped short of dictating how much more the state should pay each month, or when.

It remains unclear, however, where Illinois would find the required funds.Judge Lefkow ordered the state to make 6 million in monthly payments (from the current 0 million) as well as another billion toward a billion backlog of payments - a 7 million increase in monthly outlays - the state owes to managed care organizations that process payments to providers.While it is no secret that as part of its collapse into the financial abyss, Illinois has accumulated billion in unpaid bills, the state's Medicaid recipients had had enough, and went to court asking a judge to order the state to speed up its payments. The problem, of course, is that Illinois can no more afford to pay the outstanding Medicaid bills, than it can to pay any of its ,711,351,943.90 in overdue bills as of June 30.Also, without a budget that includes borrowing to pay down the bill backlog, Illinois by August will run out of money for key expenses for the first time since the stalemate began, according to Comptroller Mendoza.

That means school funding, state payroll, and pension payments could be affected, she said.Yields on the state’s 10-year bonds have soared to 4.8%, 2.8% points higher than benchmark debt.

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