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General Assembly Restricts State Grants
The General Assembly passed House Bill 5424 which includes Senate Floor Amendment No. 2. This bill creates the "Zero-Base" budgeting concept for the State budget. The bill contains restriction on the budget process and on the Governor's ability to enter into collective bargaining agreements beyond the scope of his or her term.
Perhaps more importantly to local governments is the provision that restricts grants from the State. The legislation amends the Illinois Grant Funds Recovery Act to provide that any grant funds and any grant program administered by the State are indefinitely suspended on July 1, 2012, and on July 1st every 5th year thereafter, unless the General Assembly act to maintain the grant. This legislation could affect grants to municipalities from the State. This legislation has been sent to the Governor.
Posted by Ken Dillenburg