SPRINGFIELD - An infusion of $1.4 billion in borrowed cash is helping Illinois pay down a massive backlog of bills.

A week after the state received the loan, officials say they have pared down the amount of time companies and people are waiting to be paid for services they've provided to the state.

On average, the Illinois comptroller is paying bills within 45 days, down from a high of 71 days earlier this month.

For pharmacists, the reduction may keep some mom-and-pop operations from closing because of a lack of cash flow.

"It's been a tremendous relief coming at the end of the year," said Mike Patton, executive director of the Illinois Pharmacists Association.

Earlier this year, pharmacists, nursing homes, hospitals and others were waiting more than 130 business days to receive payments from the state.

Patton said a small survey of his membership found bills are now being paid within 90 working days.

"That could help some from closing their doors," he said.

The state sought the loan to make up for a shortfall in revenue caused by the slumping economy. It will have to be paid back by the end of the fiscal year in June, but it will allow the state to pay down some of its bills in the interim.

The loan remains a short-term fix with more financial problems on the horizon.

With Gov. Rod Blagojevich facing criminal charges and an ongoing impeachment initiative in the House, it remains unclear whether he will be overseeing the state's response to a possible fiscal crisis.

His budget office usually spends December and January preparing a spending plan for the next fiscal year, but a lack of leadership caused by the governor's woes could complicate their work.

Marcelyn Love, spokeswoman for the governor's budget office, said officials are grappling with a deficit of at least $2 billion.

"Unfortunately, the economic situation continues to look bleak," Love said.

Warning signs that revenues aren't keeping up with state expenses have been cropping up for months. Revenue projections show the state taking in less money than is needed to pay for current services.

In response to the flagging economy and Blagojevich's legal problems, Standard & Poor's recently put out a negative "credit watch" on the state's AA bond rating.

Already, the governor has closed a handful of state parks and historic sites, as well as imposed spending restrictions on other agencies.

Those types of actions are expected to continue.

"We are continuing to work with the agencies to determine where reductions can be made while still providing core services," Love said.

As for looking down the road at tax hikes or other ways to boost revenues, Love said nothing is set in stone.

"Those things are still being developed," said Love.

In all, the backlog of bills now stands at $1.9 billion, down from $3.4 billion in mid-December, said Carol Knowles, spokeswoman for Comptroller Dan Hynes.

But, that amount doesn't count an estimated $1 billion in bills that still could be outstanding at the Illinois Department of Healthcare and Family Services.

"We have no control over that," Knowles said.

kurt.erickson@lee.net / (217) 789-0865