From AP - News Headlines -

Illinois Faces New Budget Year with No Budget

Wednesday marks the start of the new state government fiscal year. But there's no budget agreement and no indication when one might happen.

The state will keep operating for at least a while... even though it has no spending authority. Lawmakers have approved a budget that includes heavy cuts to social services, which Governor Pat Quinn announced he won't sign. It all adds up to an ongoing stalemate that threatens to drag well into the summer or longer. Quinn spoke before a joint session of the House and Senate just hours before lawmakers left the Capitol. "We must not put off decisions until later in the summer or the fall or next winter... that's not what adults do," Quinn told lawmakers in the House chamber.

Quinn is still trying for an income tax increase, but so far he lacks the votes to get it passed. A gubernatorial veto would force lawmakers back to the Capitol, but there's no timetable yet for their return. The Governor says the state has a budget deficit of more than nine billion dollars, but there's even disagreement if that's an accurate amount.

Categories: Economics, Government, Politics