The 2016 Fiscal Year began on July 1 without a budget having been signed into law. Governor Bruce Rauner vetoed the Democrat-passed budget (with the exception of education funding), which was $4 billion out of balance. Without a budget, the state has limited ability to direct money to programs and services.
Many people have questions about what they can expect as the state begins the new fiscal year without a budget.
We’ve put together a list of state operations that will continue with or without a state budget in place.
Schools will start on time. Governor Rauner signed one budget bill into law that will ensure public schools will open on time and teachers will be paid.
Illinois State Police will remain on duty.
Prisons will remain open—with prison guards on duty.
Emergency management personnel will keep working.
A wide range of health and human services mandated by the federal government and federal courts will continue to operate. Additionally, while state programs and services must receive funds through an annual appropriation, just because there is no budget doesn’t mean all of the state’s programs and services will immediately cease operation upon missing a payment.
Funding transfers to local governments will continue automatically. State income, sales and motor-fuel taxes will continue to be directed to cities, towns and villages.
If you are waiting for a refund from the Department of Revenue, that refund is still coming.
Retired state employee pensions and benefits will be paid, current State employee benefits will remain in place and salaries will eventually be paid. Retired State employee pensions and benefits are a continuing appropriation and do not need to be appropriated on an annual basis. The Rauner Administration is currently working to ensure current State employees will be paid on time; however, if legal barriers prohibit payment of state salaries without a state budget in place, state employees will eventually be paid for their time worked.
The State will pay its debt obligations.