The General Assembly left Springfield May28th,  after passing a budget giving lump sum appropriations to each state agency and an additional lump sum appropriation to the Governor to distribute at his discretion.  They also passed the Emergency Budget Act which gives the Governor the power to make changes to contracts, eligibility standards, and programs  until January 2011.  This act also extends the time period of “lapsed spending” from August 31 to December 31 so that some FY10 bills will not be paid until the end of the year,  and requires that FY11 bills are paid only after prior bills are paid.

The General Assembly FAILED to pass measures to generate the significant revenue it needs to pay for what it is outlined in the budget, such as the pension borrowing bill or tax increases such as those outlined in HB 174 . The only new revenue involves one-time sources of funding that will go away next year.

This results in increasing uncertainty about funding levels, contracts and payments for those relying  on state funding.  The Governor, the Governor’s Office of Management and Budget, and the Department Heads now need to make decisions about where the lump sum appropriations should go, and since there is not adequate revenue, this means more cuts to programs and delays to try and fill the gap.

There is a possibility that the Senate will still call the pension borrowing bill for a vote in the next few weeks, and measures for new revenue may be considered in the fall after the elections.

It is important that we continue to communicate to legislators the serious negative impact this budget has on services to those most in need. They need to understand the urgency to make the necessary changes to craft a more responsible budget with revenue needed to provide services vital families and communities throughout our state.