State Budget Update

With the “stopgap” six-month budget for the first half of FY17 scheduled to expire on December 31, pressure is being placed on key Illinois officials to develop a budget agreement. House Republican Leader Jim Durkin, Governor Bruce Rauner, and other leaders were meeting almost daily in Chicago. Key issues include cash flow for State spending areas covered in the “stopgap” budget. Renewed appropriations are required if these areas are to get funding in January 2017 and following months. However, no agreement has yet been reached.

Pressure for a budget deal is being driven by the deteriorating financial condition of the State. The Comptroller’s office indicated that Illinois had, as of Tuesday, December 6, piled up a backlog of unpaid bills totaling more than $10.6 billion. These include both bills that are actually in the Comptroller’s office awaiting payment and bills that are in the various State agencies and have not yet been forwarded to the Comptroller.