SPRINGFIELD - Illinois' financial condition has deteriorated to the point where top officials are raising the specter of taking out loans to pay down a massive backlog of bills.

Faced with months-long payment delays to state contractors, the concept has support among Republican lawmakers and two key Democrats.

"Clearly the comptroller has expressed concerns about the bill backlog," said Carol Knowles, spokeswoman for Comptroller Dan Hynes. "He doesn't believe it's fair."

Treasurer Alexi Giannoulias also supports the concept, but says the state needs to reform its budgeting system so it won't have to borrow money in the future.

"We're open to the suggestion of short-term borrowing under the right circumstances," said Giannoulias spokesman Scott Burnham.

It wouldn't be the first time the state has taken out the equivalent of a payday loan to pay hospitals, nursing homes and other vendors. But, the latest rumblings come just two weeks before Gov. Rod Blagojevich is expected to unveil his latest budget proposal.

It's not clear what the governor will call for in his annual budget address, but he has lobbied hard for an expansion of health insurance since taking office five years ago. Critics say the state shouldn't expand or add programs when it can't pay its current bills.

"This is exactly what happens when you don't manage your budget," said state Sen. Dale Righter, R-Mattoon.

A spokeswoman for Blagojevich didn't immediately respond to questions about the concept.

In order to borrow money, the state needs the signatures of Blagojevich, Hynes and Giannoulias.

The comptroller's office, which is charged with writing the state's checks, puts the current bill backlog is at about $900 million, which is down from a record-setting level of $1.7 billion on Dec. 31.

The decrease in the backlog, however, is not expected to last for long.

"It's going to continue to rise in February and beyond," said Knowles.

For state contractors, that means they must wait at least an average of 29 working days - or, about a month and a half - to get paid for their services.

The wait is much longer for some vendors.

Mike Patton, executive director of the Illinois Pharmacists Association, said payments to pharmacists are exceeding 90 days in many cases. Even those who are on a schedule to be paid more frequently are seeing their bills going unpaid for months, he said.

"There are a lot of people out there hurting," said Patton.

It's not the first time the state has turned to loans to help speed payments to vendors.

In 2003, Hynes and Republicans in the Illinois House recommended that the state take out loans to pay what it owes to nursing homes, pharmacies, hospitals and other service providers.

In July 2002, the state also borrowed $1 billion to address similar cash flow problems.