SPRINGFIELD - Democrats who control the Illinois Senate hinted Thursday that some kind of tax hike may be on the horizon.

With the state's backlog of unpaid bills projected to hit $5 billion by March, Senate leaders said the state must find new ways to pay for existing services.

"Maybe we need to look at alternative ways to raise revenue," said state Sen. James Clayborne, a Belleville Democrat vying to become the next Senate president.

State Sen. Donne Trotter, D-Chicago, a top budget expert in the Senate, said lawmakers likely will have to find new sources of cash to pay bills.

"We would hope so," Trotter said.

Talk of tax hikes came as Comptroller Dan Hynes warned in a letter to the governor and legislative leaders Thursday that the backlog of bills owed to state vendors is at a tipping point.

Already, the backlog stands at an unprecedented $4 billion, with many vendors waiting three months or longer to get paid for services.

In the short term, Hynes is calling for changes in state law that would let officials borrow money to make sure, for example, that state troopers can still put fuel in their vehicles and prisons still receive shipments of food.

"To characterize this as an imminent crisis risks understatement," the comptroller noted.

Blagojevich spokeswoman Katie Ridgway said the governor is attempting to grapple with the economic slowdown by asking state agencies to hold 3 percent of their budgets in reserves, controlling employee headcounts and reducing the cost of some services.

Even before the national economic meltdown began affecting state government, the governor had planned to close two dozen state parks and historic sites because of funding shortfalls. Those closings are still on track for Nov. 30.

Ridgway said Hynes' proposal may have merit.

"We agree that short-term borrowing could be helpful to pay bills quickly during this time of year and manage the state's uneven cash flow," she noted. "We are interested in helping to get vendors paid on time and will review the comptroller's proposed language."

State Sen. Bill Brady, R-Bloomington, said he'd support short-term borrowing to pay some of the state's bills but only if the loans are paid off soon.

Hynes is asking for more time, though, and Brady said that request shouldn't be approved quickly.

"What he's talking about takes major discussion," Brady said.

State Sen. Christine Radogno of Lemont, a chief budget negotiator for Republicans in the Senate, said more short-term borrowing only delays truly dealing with the state's budget problems.

"That is exactly what got us into this problem," she said.

To highlight the mounting financial woes, legislative leaders met with the administration Thursday to discuss budget matters. Action on the backlog could come as soon as next week when the House and Senate convene.

"It's an understatement to say we are in a financial crisis," Trotter said.

kurt.erickson@lee.net|789-0865