Naperville Business Lawyer Talks About the Impact of the State Budget Impasse on Small Businesses

budget impasse, Naperville business lawyerLate last month, Governor Tom Wolf of Pennsylvania finally relented and allowed a legislature-created spending plan to go into effect, ending nine months of impasse over the state’s 2016 fiscal year budget. In addition to providing much-needed financial relief for schools and social services in the Keystone State, the governor’s action also means that Illinois is now the only state in the union that has yet to approve a 2016 budget. Experts and political commentators are unabashedly using the word “crisis” to describe the situation, as the lack of government funding is being felt all the way down to the family level at this point.

Many small businesses, as well, have started to feel the pinch of the Illinois budget impasse. In my practice as a business law attorney, I have fielded many concerns from business owners about how long the crisis will last and what can be done in the meantime.

Schools, Non-Profits, and Social Services

Around Illinois, there are a variety of entities primarily reliant on the state government for funding. Without a budget for the last 10 months, the state has been unable to provide the necessary money, leading to financial shortfalls at public universities, outreach services, and other non-profit organizations. The elderly and those battling substance abuse are having trouble getting the help they need. Would-be college students are also struggling to find financial aid to allow them to continue their studies.

Small Business Issues

Many small business owners rely heavily on state-funded organizations as their main source of business. They often provide goods and services to public universities and non-profits, a number of which are on the verge being shut down altogether. Other businesses are dependent on the assistance offered by development entities and incubators like the Small Business Development Center at Southern Illinois University. In February, the Center—which serves approximately 600 small companies—announced that it would be closing due to the budget impasse, but was able to secure funding to remain open at least through June of this year. Similar programs in other areas have already been forced to cease operations.

Riding Out the Storm

While there appears to be no end in sight, business owners in Illinois have little choice but to tighten their belts and wait for a resolution. In the meantime, advocates for action are encouraging entrepreneurs to stand up and be heard. The encourage small business owners to remind lawmakers in Springfield that the decisions made in the capital can and do have an effect on individuals and families.

If you are a small business owner and have questions about creating a strategy for dealing with the ongoing budget impasse, contact an experienced Naperville business attorney. Our knowledgeable team will work with you to protect your investment and your future. Call 630-756-1160 today to schedule an appointment at The Gierach Law Firm.

 

Sources:

Chicagoist

Crain’s Chicago Business

Reboot Illinois

The Southern Illinoisan