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 The standoff between the Republican governor, a political
newcomer, and the Democratic-controlled legislature is affecting
everything from the ability of lottery winners to collect their cash
to state workers' healthcare payments.
In the weeks since fiscal 2016 began on July 1, U.S. and state
judges have ordered Illinois to pay its workers and adhere to
federal consent decrees mandating certain healthcare and social
service programs.
That has put $14 billion of state spending under judicial control,
according to Illinois Budget Director Tim Nuding. It has also placed
the state on a path to spend more than its estimated fiscal 2016
revenue of $32 billion. The courts have ordered spending at levels
in place in fiscal 2015 when revenue totaled about $36.6 billion due
mainly to higher income tax rates that expired on Jan. 1.
"The courts in many ways are running our government because the
legislature has failed to pass a balanced budget," Nuding told a
state Senate hearing last week.
 Governor Bruce Rauner sent a memo to lawmakers on Thursday, warning
that the longer it takes to resolve the budget impasse with
Democrats, "the cuts we will have to make become deeper and what we
ask of taxpayers will be steeper."
Illinois and Pennsylvania are the only two states still fighting
over a budget past their July 1 deadline, according to the National
Conference of State Legislatures. Arturo Perez, an NCSL analyst,
said the fact that neither state was able to put temporary spending
measures in place has opened the door to court intervention.
RISK OF MORE JUDICIAL INTERVENTION
Lottery players in Illinois who have won prizes of $25,000 or more
and who have not been paid since July 1 due to the lack of a budget
filed a class action in federal court. The winners are seeking
$288.4 million plus interest and a suspension of certain lottery
ticket sales.
Several labor unions including Illinois' biggest, the American
Federation of State, County and Municipal Employees Council 31, this
week asked a St. Clair County Court to force the state to fund
healthcare coverage after it stopped paying claims, according to
AFSCME spokesman Anders Lindall.
"There is a substantial possibility that state employees will forego
needed medical care, either because they will not be able to afford
to pay for the care up front at the time of service, or because they
fear that medical care providers will demand such payments up
front," the unions' complaint states.
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In a notice on Friday, Illinois said it will resume payments for its
self-insured plans once a budget is approved.
Group health insurance and public universities and colleges are two
big-budget items that cannot be funded without an annual
appropriations. Other big-ticket items, such as bond and pension
payments, are being paid through continuing appropriations, which
total about $8.9 billion, according to Nuding.
The budget impasse is also preventing the state from making some
payments to local governments.
Mark Kern, St. Clair County Board chairman, said Illinois is close
to being $6 million in arrears on money earmarked for the county's
911 emergency communication system and probation department.
"The taxpayers of St. Clair County can't afford to balance the
state's budget on our backs," Kern said.
The county is preparing a lawsuit over money the state is collecting
but not remitting for 911 service on county residents' cell phone
bills, he added.
A multi-county mass transit district in southern Illinois sued for
the release of $3.8 million. In its lawsuit, the agency warned it
will have to shut down in mid-October if no state money comes in.
(Editing by Matthew Lewis)
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