State lawmakers and Gov. Bruce Rauner face a midnight deadline to approve a budget for the new fiscal year, which starts Wednesday.
But the House adjourned Tuesday evening without a deal reached.
Paychecks are one of the concerns with this looming shutdown.
Gov. Rauner has said state employees would get paid.
A letter obtained by the Associated Press shows Rauner's personnel agency has concluded he should continue paying state employees.
The letter from attorney Michael Basil of the Department of Central Management Services says that the same complex federal rule that allowd the state to make full payroll during a 2007 standoff creates the same situation today. But Attorney General Lisa Madigan says that's not guaranteed because the 2007 court ruling did not set a precedent.
House Speaker Michael Madigan is proposing a measure to keep state government operating, but only for a short time.
Madigan calls it an essential services budget lasting one month and would appropriate a little over $2 billion to essential services, like state police protection, Medicaid health care coverage for the poor and disabled, child care, and more. On Tuesday, Gov. Rauner appeared ready to reject that proposal. His chief-of-staff Mike Schrimpf pointed to Rauner's statement earlier in June that "an unbalanced short-term budget with no real reforms is still a phony budget and unacceptable to the people of Illinois."
Gov. Rauner has vetoed the vast majority of Democratic lawmakers' $36 billion budget plan sent to his desk in June, which was nearly $4 billion short on revenue. The only part of the budget the governor approved was an increase in spending on education.
Instead, the governor wants to see fundamental business and political changes first. Changes like freezing property taxes, putting restrictions on liability lawsuits and compensation for workers comp, and allowing for expansion and increase tax revenue. He also wants term limits and impartial political map-drawing.
On Tuesday, Gov. Rauner cut $36 million in already-funded road construction projects.
But not all state services would stop. On this 4th of July weekend, every state park will be open. All Secretary of State offices will remain open as well, including area DMV's if you need a new license or to renew your plates.
Prisons will operate normally and fully staffed.
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