Illinois, Deep In Debt, Has a Policy of Not Paying Their Bills.

• A deliberate policy. Shame on them.
• The State Disbursement Office has to deal with who gets paid first. Temptations for bribery?
• Will it get worse? Probably, there is no money. Big problem for States, they cannot print it. Heh,heh.
• Presumably there will be no services without paying cash up front.

An excerpt from the article.

Once intended as a stop-gap, the months-long delay in paying bills has now become a regular part of the state's budget management, forcing businesses and charity groups to borrow money, cut jobs and services and take on personal debt. Getting paid can be such a confusing process that it requires begging the state for money and sometimes has more to do with knowing the right people than being next in line.
As of early last month, the state owed on 166,000 unpaid bills worth a breathtaking $5 billion, with nearly half of that amount more than a month overdue and hundreds of bills dating back to 2010, according to an Associated Press analysis of state documents.

California issues IOU's. Another near bankruptcy State.

Read more from the Seattle PI by Christopher Wills.