Dec 12, 2008 6:36 pm US/Central
Blagojevich's Troubles Have Paralyzed Government
CHICAGO (CBS) ―
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Illinois Comptroller Dan Hynes talks with reporters about the challenges facing state government amid Gov. Rod Blagojevich's problems.
CBS
One result of the long-running deadlock in Springfield is that Illinois has lost billions of dollars in federal funds, money we could have used for roads and bridges. CBS 2 Political Editor Mike Flannery reports.
On top of that, state government is facing a $4 billion to $5 billion shortfall. Some Medicaid providers, including hundreds of doctors, haven't been paid for care they gave to patients six months ago.
A plan to borrow $1.4 billion to speed up those payment checks has hit a huge snag. As part of every big borrowing, Attorney General Lisa Madigan has to sign a formal document. Part of it states that there is no litigation or controversy that threatens the governor's ability to serve in office.
Right now, no lawyer in her right mind would sign that.
"The closing for the transaction would happen next week, maybe next Wednesday," Illinois Comptroller Dan Hynes said. "And we don't know if the governor would be in a position to sign those documents next Wednesday. Last Tuesday, he was in a holding cell."
"State government is paralyzed by a governor who is incapable of governing," Madigan said.
As the economy declines, the state's budget revenues decline, too, with each passing month. Important decisions have to be made about how to balance the state budget.
Much of that kind of decision-making was being done day-to-day by the governor's chief of staff, John Harris. With his resignation, it may well be that no one is in charge of the big picture in state government.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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