Checks from state will not be in the mail

Sometimes complaining brings out needed change.

In August 2010, News-Gazette columnist Tom Kacich reported on a beef that local businesswoman Jennifer Shelby had with the state of Illinois.

The president of Shelby Motors in Champaign, she reported having received during a three-week period 24 checks with a total value of $21.52.

Some were for as little as one cent.

Of course, it doesn't make much sense to send checks for one penny when the cost of preparing the check is $18.25, according to one state estimate. That's especially true when the state is effectively bankrupt.

To those familiar with how the state works, it was just more proof of its cavalier attitude toward taxpayers dollars and hopelessly inefficient methods of doing business.

But there's good news.

A bill awaiting Gov. Pat Quinn's signature mandates a vast expansion of direct deposit of checks to state vendors and bars the practice of mailing interest checks with a value of less than $5.

Comptroller Judy Baar Topinka estimated the total savings from the planned moves are roughly $3 million.

The legislation, which Quinn is expected to sign, requires non-union employees, vendors and contractors who receive more than 30 checks a year from the state to register for electronic payments or be subject to a $2.50 charge for each check sent by mail.

Here's a couple of hair-curling statistics. Illinois has more than 14,000 vendors who received more than 2.5 million checks last year. Electronic payments will be much more efficient and far less costly.

Between August 2009 and December 2010, the state mailed roughly 96,000 interest checks for amounts less than $5. The average was $1.17.

Ending this practice also will produce a substantial savings.

Obviously, Shelby was not alone in receiving state checks for miniscule amounts or in being chagrined that the state was mindlessly pursuing such a practice on a grand scale.

It's great that their complaints received a respectful hearing and produced a dramatic change.

But what took so long? Electronic payments are routine in all kinds of financial transactions. How long does it take to conclude that spending $18 to mail a 1-cent check or even a $5 check makes no sense?

Obviously, it's better late than never. But there should be a higher premium placed on maximizing efficiency in government at all levels, particularly when there is not enough tax revenue to go around. And it shouldn't take an outspoken business leader or stories in the newspaper to realize that.

Categories (2):Editorials, Opinions

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Sid Saltfork wrote on July 08, 2011 at 7:07 pm

I am not understanding the term "non-union employees". State employees whether union, or non-union have been using direct deposit as directed for years. Why not use the term "employees"? The union has nothing to do with it. Why the emphasized distinction?

Yatiri wrote on July 09, 2011 at 6:07 am

Because the NG is a neocon/teabagger rag, that's why, doh!

jthartke wrote on July 11, 2011 at 10:07 am

But this shouldn't matter, since government jobs and government contracted jobs are not "real" jobs anyway, right?

Sid Saltfork wrote on July 11, 2011 at 5:07 pm

When Illinois shuts down, they will be real ex-workers in the unemployment line. Minnesota is something to watch right now. It is an example of what will happen if the country goes into default. Illinois is broke. The employees of the State of Illinois have been selected as the scapegoat by the shills ( "civic committees", the Chamber of Commerce, and neo-con media ) of the corporations. The whole mess was caused by union public employees who had their pension shorted, and stolen by the legislature for pork barrel projects? Yeah, watch more FOX news.

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