Successive actions the State will be forced to take include delayed paychecks for State workers, unanswered billings from and no payments to new Medicaid and other State-financed health care providers, no new payments to other State vendors, and no general state aid (GSA) payments from the State Board of Education to school districts. These actions are expected to hit in different ways at different times. For example, the Comptroller reports that the first scheduled payless payday will be July 15. The first GSA payment is due no later than August 10.
Munger pointed out that some monies remain in place to pay essential bills under the “lapse period” law. This law allows leftover money appropriated for use in fiscal year 2015 (FY15) to be spent down during the first 60 days of FY16. However, funds available under this pathway fall far short of the monies required to keep all of the State’s legal commitments, such as paychecks for State workers and GSA payments to schools.
House Republicans have repeatedly called for the startup of real budget negotiations and the creation of a balanced budget, as demanded by the state Constitution.