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February 16, 2016

Illinois lawmakers may have to find other creative ways to manage its cash flow. The state’s revenues through FY19 are projected to dwindle by 4.5% to USD 34.2bn in FY19 from USD 35.8bn in FY15 as its expenditures rise by 11.1% to USD 39.3bn in FY19 from USD 35.4bn in FY15, according to the three-year budget projection.

While the General Assembly passed and the governor signed a K-12 education budget for FY16, it is possible for the state, via the Illinois State Board of Education, to lower their payments to school districts in coming months to manage cash flow issues, said the Center for Budget and Tax Accountability’s Bobby Otter. Most of those funds are considered grants.

Illinois lawmakers passed legislation to help the state with cash flow issues under former Governor Quinn, giving the state six months rather than two months to catch up on the last fiscal year’s contractual obligations. The state has already been tapping this law to manage cash flow and plans to use this mandate again, said the comptroller’s spokesperson. 

Last year, the Illinois legislature swept a number of different funds in order to make it through the fiscal year. The state legislature could do this again, Otter said. However, this would require
an agreement between the general assembly and governor, Otter said.

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Source: Debtwire