State Government Shutdown Looms As Budget Deadline Nears
CHICAGO (CBS) -- State workers might have to go without paychecks if lawmakers and the governor don't reach an agreement on the budget in the next couple days.
If a budget isn't approved by the start of the next fiscal year on July 1, the state won't be able to pay bills, including writing checks to employees.
Atty. Gen. Lisa Madigan called it a dire situation.
"If there is no budget, not only can the state not incur additional payments, but they're also going to have to determine possibly who is essential; because, obviously, there are certain services that will have to continue," she said.
State Treasurer Michael Frerichs said his office already has begun making contingency plans.
"We've worked with our senior management to make sure we can run the office, but we're also reaching out to credit unions to make sure that there are low-interest loans available for state employees who might miss a paycheck, and need it to pay their bills," he said.
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Lawmakers were scheduled to return to Springfield on Tuesday, but it's unclear if any budget deal will be ready for a vote.
The only area of the budget where the Illinois General Assembly and Gov. Bruce Rauner have agreed so far is education. Rauner has vetoed the majority of a spending plan the Democratic controlled legislature sent to his desk, although he approved budget measure to increase state spending for education.
The governor blamed Democrats for sending him a spending plan that is nearly $4 billion short on revenue.
Madigan said previous experience with budget impasses and government shutdowns show there is a little more time to reach a compromise if a deal isn't in place by July 1.
"We've been through this a number of times before; 2007, 2009. That first payroll is really July 15, so there still is a little bit of a cushion, but not very much of a cushion," she said.
