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Fiscal year starts with no state budget in place

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SPRINGFIELD - When it comes to the state budget, few will be saying "Happy New Fiscal Year" Tuesday. In what is becoming a trend, another fiscal year is set to begin with no state budget in place.

Although state government isn't going to simply shut down, a continued stalemate among Democrats who control state government could begin affecting how the state operates in about 10 days.

"It's a very disturbing pattern," said state Rep. Dan Brady, R-Bloomington.

Illinois Comptroller Dan Hynes says about 4,900 state employees won't get their mid-month paychecks if a budget isn't in place by July 10.

In addition to the possibility of missed payrolls, the lack of an operating budget also would bar Hynes from distributing checks to school districts, hospitals and nursing home operators.

"The state's inability to meet vital healthcare, social service, transportation and other critical needs will have a grave impact on those entities who provide those services," Hynes recently wrote.

Gov. Rod Blagojevich hasn't been able to take formal action on the budget because the House and Senate didn't send him the four main pieces of the spending plan legislation until Monday.

Despite not having the budget plan on his desk until Monday, Blagojevich has already announced how he's going to deal with it.

The governor last week threatened to trim $1.5 billion in spending, saying the state won't have enough money in the coming twelve months to afford what the House and Senate approved.

On the chopping block is cash for health care programs, college aid programs and Amtrak service.

But, the governor has sent some confusing signals. Just four days after outlining the various proposed cuts, including $7 million to 4-H programs, Blagojevich told members of a 4-H group on Friday that he'd protect their program.

And, just days after saying dire cuts are on the horizon because of a shortfall in state funds, the governor unveiled a new $14 million summer jobs program for teens.

Lawmakers question how the governor can say the budget isn't balanced, while at the same time announcing new programs.

"It's just so hard to believe and trust the guy," said state Rep. Mike Boland, D-East Moline. "If we're in this dangerous financial situation, you can't be starting new programs."

Blagojevich wants the Illinois House to return to Springfield to enact a series of revenue-generating measures that would stave off his threatened cuts.

But, as of Monday, there was no plan in place by the House to return.

"I don't think you'll see the House coming back," said Steve Brown, spokesman for House Speaker Michael Madigan, D-Chicago.

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