A new — bad — economic indicator

September 2nd, 2009 at 11:40am Alex Gary

The Illinois Department of Financial and Professional Regulation licenses dozens of professions, ranging from cosmetologists, doctors and roofers to locksmiths and even professional boxers.

The Register Star publishes the monthly IDFPR regulatory actions of businesses or residents in Boone, Ogle, Stephenson and Winnebago counties. Since 2005, the state has issued 189 disciplinary actions against Rock River Valley residents. An increasing number of those actions aren’t for wrongdoing in their professions, but rather for failure to pay bills.

In 2005, three people had their licenses suspended or revoked for either failing to pay child support, state taxes or for defaulting on an Illinois educational loan. In 2006, that number grew to five, then eight in 2007 and 10 in 2008. Through July of this year, 26 people have been reprimanded for one of these three issues.

Since the area’s unemployment rate has risen to levels not seen since 1983, it isn’t surprising that more people are defaulting on student loans or failing to pay taxes. Sue Hofer, a state of Illinois spokesperson, said the increase isn’t entirely because of the struggling economy.

“Most of the increase you note is attributable to better enforcement and more rigorous cross matching,” Hofer said. “For instance, IDFPR and Revenue recently completed a pilot program that found more than 100 licensed professionals owing more than $150,000 in back taxes through a computer generated matching program.  The health care professionals were sent notice that their licenses were suspended but that the suspension would be stayed for 60 days so they could make arrangements to clear their tax liability.  While most took advantage of that opportunity, dozens failed to act, and their licenses were suspended.”

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