No state budget leaves schools, others in limbo

SPRINGFIELD - Increased education and health care spending projects, along with the rest of the $59.2 billion Illinois budget, hang in limbo as the state appears likely to begin a new budget year Tuesday without a budget.

The deal lawmakers approved on May 31 added more than a half-billion dollars for schools, upped health care spending and had numerous other increases, all while holding the line on taxes. But it's admittedly unbalanced and the thousands of pages making up that budget weren't officially delivered to the governor for action until Monday afternoon.

Last year, similar gridlock spawned weeks of overtime sessions that cast the state's financial situation into chaos and brought along for the ride anyone and anything that relied on state funding.

The experience taught many a lesson.

In Elgin, U-46 school officials have not budgeted any of the touted state increases into their local school budgets.

So, while the state budget approved by lawmakers includes a $225 increase in the minimum amount that must be spent on each student across the state ...

"We're not assuming that until we actually see it," said district financial officer John Prince.

The governor has already publicly threatened to slash $1.5 billion and order agencies to hold back another $500 million to balance spending unless lawmakers return to Springfield and come up with more money.

The threatened cuts cover:

Social services: $260 million

Seniors and veterans: $106 million

Economic development and transit: $255 million

Environment: $18 million

Education: $110 million

Public safety: $26 million

Healthcare: $600 million

State government operations: $130 million

Specifically, the governor wants the House to give final approval to the Senate's plan that'd let him draw down nearly $500 million from special state bank accounts and also OK a pension borrowing plan that would dramatically reduce how much the state would need to spend on pensions this year.

"At this point we are still hopeful the House will do the responsible thing and go back and pass those revenues sources," said Blagojevich budget office spokeswoman Kelley Quinn.

Without them, "the effect would be very deep and hurtful across the state," she said.

Budget delays could also impact doctors and other health care providers who treat patients via state programs. Beginning Tuesday, there's no authority for the state to spend any money to cover anything, raising the chances of those providers seeing significant delays in getting reimbursed, something they already claim takes far too long.

In addition, 4,900 state employees are scheduled to be paid on July 15. Comptroller Dan Hynes recently warned that if there's no budget in place by July 10, he won't be able to make that payroll.