Comptroller seeks to pay workers for services provided

CHICAGO - Comptroller Leslie Geissler Munger released the following statement Tuesday in response to a court ruling that state employees may not be paid during the budget impasse:

"I am disappointed and respectfully disagree with today's ruling. We went to Court to ensure that my office can comply with federal law and compensate employees for services they are already providing to the state. Ultimately, that can best be accomplished by paying all workers as scheduled. I am most concerned about the impact this decision will have on our ability to pay those providing services to our most vulnerable residents, and I will continue to seek a remedy with their interests at the forefront of my mind.

"My office will soon file an appeal to today's decision and will provide further information as it becomes available."

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Comptroller seeks Agreed Order from AG to continue paying employees

CHICAGO - Comptroller Leslie Geissler Munger on Thursday outlined her plan for paying the state's bills during the budget impasse as she entered the new fiscal year without appropriation authority.

In an effort to comply with federal labor laws, Munger is asking the Attorney General's Office to seek an Agreed Order from the courts that would allow the Comptroller's Office to continue paying state employees during the impasse. The Attorney General entered a similar Agreed Order on behalf of Comptroller Dan Hynes in 2007 that allowed state employees to be paid when the state entered the new fiscal year without a budget agreement.

"The contribution of state employees to maintaining public services and public order is beyond dispute," Munger said. "Allowing these employees to be paid on time and at the correct rate of pay until the budget impasse is resolved will also promote the legitimate goals of government to maintain critical services."

In addition, Munger announced that due to legislation passed by the General Assembly last year that made state legislative and judicial salaries "continuing appropriations," state legislators and judges are the only state employees who will continue to be paid during the budget impasse, unless the court acts.

The Comptroller will be able to continue making payments authorized under the previous fiscal year that ended June 30. She will also be able to make new payments classified as "continuing appropriations" and under court orders, including the following payments: debt, pension, retiree benefits, Temporary Assistance for Needy Families, Assistance for the Aged, Blind and Disabled, and most local government payments.

However, when the FY15 bills are paid, she will not have appropriation authority to pay most new bills incurred in the new fiscal year after July 1. Ramifications include :

• Nonprofits and small employers will be unable to receive expedited payments
• State employees will start missing paychecks July 15
• New payments to state vendors will stop

Munger stressed the Comptroller's Office will continue to operate without interruption throughout the budget impasse to process all payments allowed under law. Her office has established a Budget Hotline - 855-IL-ASK-US - and she encouraged state vendors to call it with questions about their payments.

"This is not a game. This budget impasse has serious consequences for families, organizations and businesses across our state. It is time for lawmakers and the Governor to find common ground and enact a balanced budget. In the meantime, my office will continue to provide whatever resources are necessary to get the job done," Munger said.

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Comptroller urges General Assembly to deliver balanced budget

"I am here as the state's Chief Fiscal Officer to urge the General Assembly to avoid causing this unnecessary hardship and work with the Governor to pass a balanced budget," Munger said at a Chicago news conference. "I am here to remind all involved that this isn't a game to be won or lost - their rhetoric, posturing and decisions have grave implications on people and communities across the state."

Regardless of budget negotiations, the Comptroller will be able to continue making payments authorized under the current fiscal year, FY15, budget - including the state's existing $5 billion backlog.

However, when the FY15 bills are paid, she will not have appropriation authority to make new payments that fall under the new fiscal year, FY16, which begins July 1. Ramifications include :

• New Medicaid provider payments will stop
• Nonprofits and small employers will be unable to receive expedited payments
• State employees will start missing paychecks July 15
• General State Aid payments to schools will not be delivered as scheduled on August 10
• New payments to state vendors will stop

Munger noted that continuing appropriations and other legal provisions will allow her to meet some FY16 obligations, including the following payments: debt, pension, retiree benefits, Temporary Assistance for Needy Families, Assistance for the Aged, Blind and Disabled, and most local government payments.

On the budget impasse, the Comptroller urged the General Assembly to reach an agreement with the Governor that includes reforms to make Illinois more competitive and grow its tax base. She noted that the budget passed by legislators last month has a $4 billion shortfall, which is "what put us in this mess in the first place."

"I come from the private sector, and I have been extremely disappointed by the inactivity and needless theater in Springfield," Munger said. "So far, lawmakers have failed to do their jobs. And their failure prevents me from doing mine. It's time for all parties to find common ground before the situation grows dire."

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