If the budget is not passed by July 1, community colleges, special education programs, nursing homes, cancer detection programs and small businesses that provide services to the state might not receive more than $1 billion in state funds on time, said Garin Casaleggio, a spokesman in the office of Controller John Chiang.
Casaleggio’s estimate comes from $1.1 billion not being doled out on time last year to state programs after the 2007-08 budget passed nearly two months after the deadline.
The estimate does not reflect the financial woes that now addle the state, he said.
But it does provide a glimpse into what Californians could be in for if legislators cannot agree on a balanced budget, Casaleggio said.
Last year, $326.6 million for community colleges was delayed, as was $170 million to school districts for categorical programs such as special education and remedial summer school, and $140 million to vendors who provide food, paper products and supplies to the state, he said.
“If we reach June 30 and no budget is passed, the next step could be painful, as people might have to rely on their own resources,” Casaleggio said. “Hopefully they can rely on money saved. Oftentimes, some groups get lines of credit to meet obligations. But the reality is, when there is no budget in place, the controller can’t make certain payments.”
Last year, the budget was passed on Aug. 24, which was the third latest date a governor has ever signed a budget into law since 1977, according to state records.
The 1992-93 legislative budget was signed on Sept. 9, 1992, and the 2002-03 budget was signed on Sept. 5, 2002. Legislators last passed a budget by the July 1 mandated deadline during the 2000-01 legislative term.
