What the State Controller Can and Cannot Pay Without an Enacted Budget (August 2010)

As the State of California's chief fiscal officer, I have created this new Web page to outline what bills my office can and cannot pay during the month of August 2010 until a State budget is enacted for the 2010-11 fiscal year which began July 1. Please be assured that I will continue to do everything within my authority to continue to provide payments for essential services. I also invite you to read the letter  on this subject that I have written to the Governor and Legislators. For example, my office will continue to make the following payments:

• Federally-mandated services such as Supplemental Security Income/State Supplementary Payment (SSI/SSP), and In-Home Support Services.
• Debt service and other payments required by the State Constitution.
• Vendor payments for services provided in the 2009-2010 fiscal year.
• Expenses with ongoing appropriations from the Legislature, including income tax refunds and payments on claims for unclaimed property.
• Payroll for state employees covered by the Federal Fair Labor Standards Act.

However, a number of constitutional and legal restrictions prevent me from making certain other types of payments without an enacted budget. For example, my office cannot pay:

• School districts for categorical programs such as special education and remedial summer school, community colleges, local governments and other entities not included in the above parameters.
• Vendors for services provided after July 1.
• Salaries and per diem of state elected officials and their appointed staff.

I invite you to view more details of these major categories, and the range of funds involved, as shown in the tables below. We can avoid or reduce additional financial pressure on our schools, community colleges and private businesses that provide state services if a budget is enacted in a timely manner. Please note the estimated figures on this page will be updated as new information becomes available, or if it becomes necessary to include data for September or later months. Estimates are based upon figures in the Governor’s May Budget Revision, Pooled Money Investment Board payment schedules, prior year expenditures, the Governor’s budget and proposed budget legislation.  (Information for the month of July can be found on our previously posted July 2010 estimated payments page.)

*Without a budget, up to $2 billion in State and Federal funds may be paid to Institutional Providers of Medi-Cal Services and Regional Centers for services provided between July 1 and September 1. However, due to the American Recovery & Reinvestment Act of 2009, hospitals and nursing homes also will be paid without a Budget in 2010.

**Without a budget, up to $2 billion in State and Federal funds may be paid to Institutional Providers of Medi-Cal Services and Regional Centers for services provided between July 1 and September 1. However, due to the American Recovery & Reinvestment Act of 2009, hospitals and nursing homes also will be paid without a Budget in 2010.

***Includes impact of furloughs