Thursday, June 18, 2009

Illinois Budget Stalemate Delaying Stimulus Projects

Illinois has joined the ranks of states where legislative stalemates over capital improvement budgets are stalling the spending of stimulus dollars which could be creating jobs for contractors, subcontractors and material suppliers in the construction industry. As much as $39 billion in federal cash slated for "shovel ready" highway projects in Illinois, without any state matching funds, is nevertheless being held up due to the failure of the state legislature to pass a budget Governor Quinn will sign. Without a budget bill signed by the governor, the state Comptroller can't cut checks to pay road contractors, and although the Illinois Department of Transportation is already beginning to award contracts for some of the stimulus funded projects, DOT will not issue notices to proceed until the budget is signed into law, because DOT wouldn't be able to process contractor pay applications unless the Comptroller is authorized to issue checks to pay for the work.

According to IDOT spokesperson Paris Ervin, "If the legislature sent the governor a budget he agreed with we wouldn't be in this situation." The legislature will reconvene in special session on June 23, but because the regular legislative term has already ended, passage of any budget measure now will require a supermajority vote in favor of the bill.
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