Illinois Treasurer: State Operations At Risk During Budget Impasse

The Springfield bureau of Lee Enterprise newspapers reports (http://bit.ly/1N9WjT8 ) that without a budget in place, emergency call systems are no longer receiving revenue from a tax on cell phone users.

Frerichs said one of the problems he’s most concerned about is disrupting investment operations.

He says his office also might not be able to make funds available to Illinois Comptroller Leslie Munger.

Rauner and Democratic legislative leaders have yet to agree on a budget for the 2016 fiscal year, which began on July 1. Without an agreement, the state entered its fourth month without a budget Thursday with no indication that a compromise is in the works. He said his office – which invests state funds – might have to stop banking activities if he can’t pay vendors such as brokerage firms, securities dealers and credit unions.

The treasurer’s office is tasked with managing billions of taxpayer dollars and overseeing various financial programs. Secretary of State Jesse White says his office can’t pay its bills and will stop sending out a few public reminders.

“As such, the State of Illinois may lose significant investment earnings and the potential loss of principal depending on market volatility”, Frerichs noted. Lawmakers return to Springfield on October. 20.

A shelter in Olney in southern Illinois has closed its doors.