State Controller John Chiang on Tuesday said he will be unable to make $7.6 billion in payments to schools, state vendors and others in September if a state budget is not approved this month.
Lawmakers and Gov. Arnold Schwarzenegger remain unable to craft a compromise spending plan that was due July 1 when the new fiscal year began. If the impasse goes through Friday, it will be the deepest into a fiscal year the state has ever gone without a budget.
Already in August and July, Chiang has been unable to make $4.25 billion in payments. While the controller generally is prohibited from paying bills without an approved budget, various court decisions have exempted some beneficiaries, allowing Chiang to send them checks.
Here's a sampling of the $7.6 billion in bills that could go unpaid this month:
• Medi-Cal providers: $3 billion
• K-12 schools, categorical programs: $1.1 billion
• Other social service programs: $874.2 million
• Mental health: $709.3 million
• Vendors: $637 million
• Developmental services regional centers: $558.1 million
• Community colleges: $464.6 million
• Cal-Grants (college financial aid): $71 million
• Legislators' pay: $1.1 million
• Legislative staff pay: $14.7 million
Here are the payments that will be made in September, with or without a budget:
• Local governments: $4.3 billion
• CalWorks (welfare): $3.8 billion
• K-12 schools (month apportionments): $3.2 billion
• State civil service payroll: $2.7 billion
• Medi-Cal (non-institutional providers): $1.6 billion
Call Bee Capitol Bureau Chief Dan Smith, (916) 321-5249.
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