Most Illinois payments will stop without new budget -state official

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[June 11, 2015]  CHICAGO, June 10 (Reuters) - If Illinois does not have an enacted budget when its fiscal year starts on July 1, state worker paychecks and money owed to vendors and school districts will stop, Comptroller Leslie Geissler Munger said on Wednesday.

Payments on Illinois' $30 billion of outstanding bonds, however, will continue, said Munger, whose office pays the state's bills.

Bills incurred in the current fiscal year will be paid, she said, but her hands are tied for most fiscal 2016 bills and payments without appropriation authority from a budget.

"If the General Assembly is unable to work with the governor to enact a balanced budget for fiscal (2016) by the end of this month, nearly all payments coming from my office will stop on July 1," Munger told reporters.

Democrats, who control the legislature, have passed a $36.3 billion budget that relies on cuts and at least $3 billion in yet-to-be-identified new revenue. Republican Governor Bruce Rauner, who appointed Munger comptroller, has insisted lawmakers pass his so-called turnaround agenda, which includes term limits and a local property tax freeze, before he will consider a tax increase.

 

Munger said continuing appropriations allow for payments for state bonds, retired worker pensions, revenue-sharing to local governments, and certain assistance programs for the poor or disabled.

Without a budget, state workers will not get paid starting July 15, school districts will not receive Aug. 10 state aid payments, and new vendor and Medicaid provider payments will stop, she said.

"I'm here to remind all involved that this is not a game to be won or lost," Munger said.

Besides the looming budget deadline, Illinois' contract with the American Federation of State, County and Municipal Employees Council 31, which represents 38,000 state workers, expires on June 30.

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The union scheduled rallies around the state for Wednesday to urge support for a fair contract.

"State employees have never been locked out or forced to strike in some 40 years of collective bargaining in Illinois," a statement from AFSME said. "But as a candidate, Governor Rauner repeatedly vowed to 'shut down state government' in order to weaken the rights and drive down the wages of public service workers."

To prevent strikes or lockouts from disrupting crucial state services, Democrats last month passed a bill requiring mediation of collective bargaining agreements between Illinois and its employees. However, Rauner is expected to veto the measure. (Reporting by Karen Pierog; Editing by Lisa Von Ahn)

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