12 Investigates: Late payments by the state in 2012 - NBC12 - WWBT - Richmond, VA News On Your Side

12 Investigates: Late payments by the state in 2012

RICHMOND, VA (WWBT) -

You pay your bills on time to avoid late fees, and you probably expect the state to do the same. It's your tax dollars right?

The state pays 99 percent of its bills on time, but it's that small percentage of missed payments that can really add up.

Last fall, we showed you how the state missed the billing deadline on $133 million in payments in fiscal year 2011. That cost taxpayers $33,969 in interest - more than the average starting salary of a teacher or a Virginia state trooper.

We uncovered how Virginia State University in Ettrick racked up $12,377 in fees from late payments. A spokesperson told us one construction project caused the problem. "VSU paid 99.9994 percent of it's bills on time," said Tom Reed. 

It was the Department of Transportation (V-DOT) that made the most late payments. The agency fell behind on $29 million.

Turn the clock forward one year. Instead of wasting $34,000, in 2012 the state only paid $4,289 dollars in late payments.

"It is much better. Obviously we don't want to pay interest, needlessly. But, if we do, we owe the vendors that to make them whole. It's a state law, it's the right thing to do. And it helps keep costs down," said state comptroller David Von Moll.  

Von Moll says last year was an anomaly and that he's happy to see more bills paid on time. He says it makes more companies want to do business with Virginia.

"It helps to keep our costs low when vendors know that they're going to get paid on time. It helps them keep their costs low as well. So, in the long term, we feel like it's a win-win for vendors and the Commonwealth."

State law requires agencies to pay bills before they are due. And out of 6 and a half billions dollars in payments made last year, 99 percent were on time.

Copyright 2013 WWBT NBC12.  All rights reserved.

  • Latest news from NBC12.comNEWSMore>>

  • Federal government notifies 21 states of election hacking

    Federal government notifies 21 states of election hacking

    Friday, September 22 2017 5:16 PM EDT2017-09-22 21:16:26 GMT
    Sunday, September 24 2017 2:20 AM EDT2017-09-24 06:20:57 GMT
    The federal government is telling election officials in 21 states that hackers targeted their systems last year, although in most cases the systems were not breached.More >>
    The federal government is telling election officials in 21 states that hackers targeted their systems last year, although in most cases the systems were not breached.More >>
  • FIRST ALERT FORECAST: Patchy Dense Fog Overnight, Sun and Heat for Sunday

    FIRST ALERT FORECAST: Patchy Dense Fog Overnight, Sun and Heat for Sunday

    Saturday, September 23 2017 11:37 PM EDT2017-09-24 03:37:07 GMT

    Get the latest forecast from the NBC12 First Alert Weather team.

    More >>

    Get the latest forecast from the NBC12 First Alert Weather team.

    More >>
  • Better late than never? Library book returned 78 years later

    Better late than never? Library book returned 78 years later

    Thursday, September 21 2017 7:51 PM EDT2017-09-21 23:51:20 GMT
    Saturday, September 23 2017 9:18 PM EDT2017-09-24 01:18:29 GMT

    A book borrowed nearly 80 years ago during the Great Depression has been returned to a Massachusetts public library.

    More >>

    A book borrowed nearly 80 years ago during the Great Depression has been returned to a Massachusetts public library.

    More >>
Powered by Frankly