This part: "Also if lots of those little (and not so little) creditors get restless and sue, you start having problems. They can move for pre-judgment attachments of cash -- freezing cash and preventing it from being used for other purposes -- like paying employees or putting money away for trust funds."
Funny ('funny" = smell bad, not "funny = haha) that Illinois should be in your attorney friend's example. Illinois has been paying its patronage workers first, because the Governor is up for election in November. All other vendors must wait for payment, which does not occur because the patronage workers took all the money.
A physician friend told me the State has not paid him for Medicare/Medicaid patients since last May. The accountant of a not-for-profit said the State has not paid since last June 30. School districts claim daily that the State owes them millions.
"Get restless and sue" is an extreme understatement. Contractors, like schools, nfp's, physicians, and materials suppliers face extinction if they don't sue. If they don't take action to maintain their solvency, they will be sued by their creditors.
If a gubernatorial candidate said, "lay off all patronage workers, including mine", I would vote for him, just like I'd vote for edible chocolate clouds, or the return of Jesus. We're effed. |
