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Texas has spent nearly $10 million on interest for late payments
AAS 1/12/12
Texas has spent nearly $10 million during past decade on interest for late payments
(snip)
During the past 10 years, state agencies and public universities have paid out $9.4 million worth of interest on late payments to vendors and contractors, an American-Statesman analysis has found.
(snip)
Under a state law aimed at ensuring that Texas pays its bills in a timely manner, state agencies have to tack on interest if they pay their bills more than 30 days late. Agencies currently have to add an extra 4.25 percent — the prime rate plus 1 percent — on late bills. The amount is automatically added by a statewide accounting system.
(snip)
Vendors and contractors aren't allowed to charge separate late fees, and the agencies said they have redoubled their efforts to minimize late payments, which can also happen because of delays in processing invoices, disputes over whether goods and services were delivered as promised and a host of other reasons. The agencies have also been helped by steadily falling interest rates.
Nearly $1 million per year in interest payments seems like small change in a state with a $173 billion two-year budget .
But for public schools and state agencies that had to slash their budgets after the Legislature reduced the state budget by $15 billion last year, it's real money.
Texas has spent nearly $10 million during past decade on interest for late payments
(snip)
During the past 10 years, state agencies and public universities have paid out $9.4 million worth of interest on late payments to vendors and contractors, an American-Statesman analysis has found.
(snip)
Under a state law aimed at ensuring that Texas pays its bills in a timely manner, state agencies have to tack on interest if they pay their bills more than 30 days late. Agencies currently have to add an extra 4.25 percent — the prime rate plus 1 percent — on late bills. The amount is automatically added by a statewide accounting system.
(snip)
Vendors and contractors aren't allowed to charge separate late fees, and the agencies said they have redoubled their efforts to minimize late payments, which can also happen because of delays in processing invoices, disputes over whether goods and services were delivered as promised and a host of other reasons. The agencies have also been helped by steadily falling interest rates.
Nearly $1 million per year in interest payments seems like small change in a state with a $173 billion two-year budget .
But for public schools and state agencies that had to slash their budgets after the Legislature reduced the state budget by $15 billion last year, it's real money.
Republican rule in Texas - how's that working for you Texas taxpayers?
Imagine if the state agencies had enough employees to do the job in a timely manner. Maybe we could save some of that interest money.
5 replies
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Texas is the king of crony capitalism states. I'm sure that's why the law implementing interest payments was put into place. Can you imagine them ever adding interest payments to late payments for their wrongful incarcerations or late payments on food stamp services to real people?
Nah me either!
I want a list of who is getting those payoffs.
You bet ya!
Melissa!
sonias!