SCO Lays It Out: What Can and Cannot Be Paid When the State Budget Is Late
Let’s just say that it is unlikely that the Legislature will pass and the Governor will approve a budget by the start of the 2010-11 fiscal year. Hope springs eternal, of course, but it is very unlikely that a state spending plan is in place by July 1.
The State Controller’s Office, undoubtedly deluged by queries from the media and others about what that really means, posted on its website today an outline of what can and cannot be paid without a state budget.
Generally, federally required payments will continue to flow. Counties can expect delays in payments for county administration of social services programs. However, other anticipated payments for social services programs and other local government payments should continue as per usual. (Note that counties will be subject to a number of payment deferrals that were approved earlier this year. Even with a delayed budget, the Controller is already directed in statute to defer those payments until later in the fiscal year.)
Certainly, more fantastic state budget news will be forthcoming over the next few weeks.