Fund Sweeps Still In Limbo

Last month, the House and Senate signed off on two key budget bills  allowing state finance officials to sweep earmarked funds to cover $220 million worth of budget cuts.  While the package was intended to restore funding to social service agencies, state parks and historic sites, hardly anyone let out a sigh of relief, knowing that the plan still needed to pass the muster of Gov. Rod Blagojevich.

After weeks of anticipation, the governor quietly signed one of the measures on Tuesday. But at the moment, the fate of those agencies and programs remains far from resolved.

That's because the measure that actually releases the money remains unsigned. Blagojevich spokeswoman Kelley Quinn explained that approval of the appropriations bill is pending an analysis of whether there's actually enough surplus money to "sweep." "We're taking it one step at a time," she said.

Frustrated lawmakers wonder why the governor didn't speak up sooner, particular considering Blagojevich proposed a much larger fund sweep earlier this year.

Despite ongoing questions regarding whether the specified sweeps are all legitimate, the comptroller's office says it plans to make the transfers. Half of the $220 million will be transferred into the budget relief fund next week and the remainder on a quarterly basis.  Blagojevich has until Dec. 6 to sign the bill and send vouchers instructing State Comptroller Dan Hynes to write the checks.  Meanwhile, layoffs are scheduled to begin Oct. 31. 

Anxiety over maintaining state-backed services isn't likely to end here. With state revenues down in virtually every fund, Hynes suggests that the magnitude of the state's looming money troubles will eclipse all other years. Indeed, just months into FY2009, the state is already struggling to pay its bills.

Comments

what is the oversight group that will watch over the approrpriations to ensure the money gets to the agencies that need it. No doubt some programs and services will get cut, but can we trust our govener to make the right decisions?

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