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State Budget Deadline, Government Shutdown Loom

State Employees At Risk Of Seeing Paychecks Stop

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CHICAGO (CBS) ― The budget battle has already gone into overtime, and with a new month arriving Tuesday at midnight, the temporary funding for the state government is about to expire. As CBS 2's Dana Kozlov reports, there are big budget concerns for families in danger of losing their paychecks.

State home care provider Alberta Walker refuses to believe Illinois is headed for a shutdown.

"We don't even want to think that way," she said.

"Some of us live or work from paycheck to paycheck," she added.

But political watchdogs say if lawmakers don't reach a deal by midnight Tuesday – August 1 – that's exactly what could happen. And eventually, 56,000 state employees like Walker could see their paychecks stop.

"We won't be able to buy food for our families, we won't be able to go places or do things," Walker said. "We'll just have to be a family, I have a very close-knit family so we'll just have to try to support one another."

In addition to state paychecks, lawmakers' failure to pass a second emergency, monthly budget – or, more critically, a permanent one – could also impact state offices, schools, universities and services.

University of Illinois Chicago political science professor Dick Simpson says that could be disastrous.

"You can't close down government for very long without severe repercussions," Simpson said. "Particularly to those who are least able to afford it, who don't have savings, who are the poor who are receiving services, who need the health clinics."

Analysts say it's up to Governor Rod Blagojevich and the legislative leaders to put egos and agendas aside and finally hammer out a budget. But if they don't do it before July is over, a spokesperson for Blagojevich tells CBS 2 that notices about a state shutdown could go out by the end of the week.

"This has never actually happened, where there's been a shutdown, so I think it's kind of uncharted territory," said state employee union representative Michael Newman.

Over the weekend 100 state lawmakers skipped a special session on the matter called by Blagojevich and Monday members of the black caucus went on a golf outing instead of attending a special session in Springfield, but despite that a lot of watchdogs say it remains up to the governor and legislative leaders to hammer out a deal. Until then there is very little for lawmakers to do.

(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)

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