Deadbeats paying, but state debt grows

Friday, July 5, 2002 | 9:08 a.m.

CARSON CITY -- The state is collecting an average of $100,000 a month from deadbeat debtors, but the amount owed the state government is still growing.

State Controller Kathy Augustine said her office has taken in $798,592 since Dec. 1 from people who owe back taxes or fines or who have given the state bum checks or failed to pay for services.

But Augustine said the state is owed $142.9 million as of March 31, about $10 million more than in the previous quarter that ended Dec. 31, 2001. She said she didn't have an explanation for the total debt going up despite collection efforts.

The $142.9 million is the amount that is more than 60 days past due. The state has contracted with two private collection agencies to pursue those who owe money.

For instance, the state Department of Motor Vehicles is owed $4.3 million from 7,590 people. Most of those are bad checks submitted to pay for driver's licenses or motor vehicle registration. The controller's office has taken in $525,000 from this source.

The state Personnel Division, that runs the state's payroll system, has referred to the state cases where the worker was overpaid. There was $329,144 in overpayments to state workers in their paychecks.

Of that total, $109,080 was turned over to Augustine's office for collection. She has received $29,074 from these former and present state workers.

But it is often difficult because these workers may have been fired and are not willing to repay the state, she said.

The controller's office has signed contracts with 13 agencies to use its debt collection companies to go after those who owe money.

The state Taxation Department is owed the most in back taxes to be collected -- more than $66 million. It signed a contract with the controller earlier this year to allow the private firms pursue the back taxes.

Augustine and the Taxation Department have been in a running battle over the program. The tax department wants to run its own show in going after past debt. Augustine says the collections should be made through her office.