Illinois to enter third fiscal year without a budget

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SPRINGFIELD, IL – The state of Illinois will enter into its third consecutive year without a budget after lawmakers couldn't reach a deal before midnight Friday.

"So here's where we are going to be come July 1 at 12:01 if we don't have a budget in place, in August we'll either be looking at horrific financial consequences or catastrophic financial consequences," said Illinois Comptroller Susana Mendoza.

On Friday, Illinois House lawmakers passed a $36.5 billion bipartisan plan to get the state back on track. The plan includes a $5 billion income tax increase and $2.4 billion in spending reductions. While that proposal was approved, it won't get a final vote in time before the start of the next fiscal year.

"I think the biggest issue right now is the issue of providing revenues, even though we've made these huge cuts, providing revenues to make this a balanced budget, so we're working through that," said State Representative Jay Hoffman (D-Swansea).

The Democrat-controlled legislature has been at odds with the demands of Republican Governor Bruce Rauner. But without a budget, financial aid for state colleges and universities could be in limbo, highway projects and road construction could stop, and Illinois could be the first state to receive a 'junk' credit rating.

"I think today's actions hopefully would keep that from happening so we have this weekend and through the July 4th holiday to try to get this done so that doesn't happen," said Hoffman. "That would be devastating and that would be awful.”

House Speaker Michael Madigan has called lawmakers back to work over the weekend with hopes of being able to pass a budget soon.

"Today was a good day in that we worked in a bipartisan fashion in order to get 90 votes on a bill that's going to eventually get us out of this mess," Hoffman said.