Budget Deadline Day: Madigan Says House Will Remain In Session

SPRINGFIELD, IL — With a new fiscal year starting Saturday, the Illinois General Assembly has to reach a budget agreement Friday or leave the state without a budget for a third year, likely plunging Illinois into "junk credit" status and risking crucial programs. Late Friday morning, Speaker Michael Madigan issued a statement — and a plea to bond rating agencies — saying the House will remain in session.

“The work of the governor and General Assembly is clearly not done. As a result, the House will remain in session," Madigan said. "While we’ve made progress on solving the governor’s budget crisis, we are not done. We will remain in session to continue our progress toward passing a balanced budget. In light of this ongoing progress, I would ask that bond rating agencies temporarily withhold judgment and allow legislators time to negotiate a bipartisan, balanced budget.”

In a letter sent to Standard & Poors, Moody's and Fitch Ratings, he said Democrats have been working to compromise, imploring the agency's not to downgrade the state's credit.

We will continue working to put a compromise on the governor’s desk and end this impasse
through the next week, and I ask you to allow these negotiations to move forward," he said.

The budget crisis prompted State Senate Republican Leader Christine Radogno to resign Thursday, although she said she would remain until the end of the current special session and continue fighting for a budget.

Gov. Bruce Rauner previously said he will keep lawmakers in session beyond Friday's deadline if a budget couldn't be reached. On Friday, he took to Twitter saying, "If lawmakers can't get a plan to my desk today, I'll have no choice but to keep them here in Springfield until the job is done."

Failure to agree on a budget could impact state education funding — already woefully inadequate, according to many school districts that rely heavily on local property taxes. The state already has a backlog is more than $1 billion behind in payments to local school districts.

Illinois colleges could also take a hit. Last week, the Higher Learning Commission, which grants accreditation to Illinois higher learning institutions, said there could be "consequences" to the lack of a budget deal, according to NBC Chicago. Students would not be able to receive financial aid from the federal government to attend schools that are not accredited.

No budget could also mean the shutdown of road construction projects throughout the state. Even federally funded projects would halt because federal dollars are generally administered by IDOT — which can't distribute the funds without a budget to appropriate them, the Chicago Tribune reported.

Powerball has already ended ticket sales in Illinois, and the final Mega Millions drawing will be Saturday unless the state reaches a budget deal. Players who win more than $25,000 will also face delays in receiving their money.

Last week, Illinois Comptroller Susana Mendoza issued a warning to lawmakers, saying that without a budget, by August, collected state taxes won't be enough to meet mandated expenses. Until now, she said, she's been able to "triage" payments for necessary services.

“In August, I will have zero flexibility,” Mendoza said. “I guarantee you nursing homes will close. I won’t be able to help them. I won’t even have enough money to make the core priorities that are mandated by the courts.”

Also read:

• State Senator Christine Radogno Submits Resignation
  
• Rauner Threatens To Keep Lawmakers In Session If No Budget Reached By Deadline
  
• Illinois Lawmakers Hold Closed-Door Session Without Rauner As 'Junk Bond' Status Looms
• Junk Credit: Illinois Could Be First State To Earn Massive Downgrade

Image credit: Éovart Caçeir at English Wikipedia [CC BY-SA 3.0]