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Reserve provides cash flow cushion in Missouri

Millions in delayed state payments in neighboring Kansas to the west and billions in overdue bills in Illinois to the east highlight how a reserve fund in Missouri provides a cash flow cushion to protect state payments.

In Kansas, the state delayed providing $124 million in pension fund contributions and transferring state aid to schools to get through a cash crunch this month.

In Illinois, the overdue bills were estimated at around $6 billion last month and could increase to $12 billion four years from now if the problem is not dealt with.

But in Missouri, the government plans to pay all of its bills on time, as Missouri Watchdog reported Friday.

[Missouri Watchdog]