New Fiscal Year Begins Without A Budget

In what is turning out to be a repeat of last year, the state’s fiscal year 2009 has now begun and the state-operating budget has not been signed by Gov. Rod Blagojevich. The budget, according to the governor, is $2 billion out of whack. Blagojevich says he’s hopeful but “cautiously less than optimistic” that lawmakers will come up with new revenues to make up the $2 billion hole. The governor, who has given lawmakers until July 9 to balance the budget, said he can’t predict what will happen in Springfield. But he pointed out that the budget problem wasn’t solved until August last year.  Blagojevich praised Republican leaders, who he said were supporting the public works capital program that could generate $600 million in revenue and make up a good chunk of the budget gap. State government will still run as normal probably until July 10. That’s the date the comptroller needs authority to issue thousands of employee paychecks due July 15. Government can still pay bills owed to people from the just-ended budget year, and some payments are required even without a budget, such as pension and welfare checks.


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