Comptroller: Most state payments will cease without budget deal

CHICAGO — Illinois Comptroller Leslie Geissler Munger on Wednesday announced that the Illinois General Assembly’s failure to reach a budget agreement with Governor Rauner by July 1 will reap severe consequences for residents and organizations throughout the state.

“I am here as the state’s Chief Fiscal Officer to urge the General Assembly to avoid causing this unnecessary hardship and work with the Governor to pass a balanced budget,” Munger said at a Chicago news conference. “I am here to remind all involved that this isn’t a game to be won or lost – their rhetoric, posturing and decisions have grave implications on people and communities across the state.”

Regardless of budget negotiations, the Comptroller will be able to continue making payments authorized under the current fiscal year, FY15, budget – including the state’s existing $5 billion backlog.

However, when the FY15 bills are paid, she will not have appropriation authority to make new payments that fall under the new fiscal year, FY16, which begins July 1. Ramifications include:

  • New Medicaid provider payments will stop
  • Nonprofits and small employers will be unable to receive expedited payments
  • State employees will start missing paychecks July 15
  • General State Aid payments to schools will not be delivered as scheduled on August 10
  • New payments to state vendors will stop

Munger noted that continuing appropriations and other legal provisions will allow her to meet some FY16 obligations, including the following payments: debt, pension, retiree benefits, Temporary Assistance for Needy Families, Assistance for the Aged, Blind and Disabled, and most local government payments.