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Governor, Democrats Still At Odds In Face Of Partial Government Shutdown

Updated 07/01/15 - 11:26 a.m.

CHICAGO (CBS) -- As the state entered a new fiscal year with no budget in place, and Democratic lawmakers prepared to vote on a one-month spending plan to avoid a temporary government shutdown, state workers were venting their frustration at a big rally in downtown Chicago.

House Speaker Michael Madigan (D-Chicago) planned to call for a vote on a $2.3 billion one-month budget to avoid the shutdown. Democrats said the plan would provide for one month of essential services such as state police, Medicaid, veterans' homes, nutrition for the elderly, childcare programs, and more.

"I would simply hope that the governor would see the wisdom of continuing to keep the government functioning," Madigan said Tuesday. "This is a reasonable proposal."

It will take a three-fifths majority vote of the House and Senate to approve the temporary budget, meaning if any House Democrat votes against the plan, and Republicans hold ranks, the measure would fail. Republican Gov. Bruce Rauner has previously said he would veto any temporary budget; but since the spending plan would cover only one month of the state's bills, and Democrats have enough votes to override a veto, the governor could simply let it sit on his desk without acting, and allow the stalemate to continue.

More than 1,000 state workers and social service agency employees staged a demonstration Wednesday morning outside the Thompson Center – the state's primary office building in Chicago – after walking off their jobs, or shutting down their offices to bring attention to the state's budget impasse.

Demonstrators called on the governor and lawmakers to approve a responsible budget, including new revenue instead of cuts to state services.

"This is obviously the workers who aren't sure if they're going to have a job, but it's also about the clients that they serve every day. These are low-income, vulnerable communities," said Tuyet Le, executive director of Asian Americans Advancing Justice, a group of community activists and business leaders.

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Social service organizations that rely on state funding to provide programs for children, the elderly, the mentally ill, and victims of physical abuse said they're concerned about what a temporary government shutdown would do to their agencies.

"Our two biggest programs deal with domestic violence and sexual assault," said Erika Aguirre, a court advocate with Mujeres Latinas en Accion. "The people we serve are usually low-income clients. They don't have the means to go to and see a private counselor or therapist, so it would really affect their communities."

Elnace Chicago executive director Michael Rodriguez said the Little Village neighborhood gets state funding for public safety, education programs, and immigration services.

"With the budget impasse, we're not able to provide those services," he said.

The governor and Democratic leaders have gotten no closer on a full-year's budget, either.

"It's going to be a while before there's a final resolution," Madigan said.

On Tuesday, Rauner visited several state offices in an effort to calm workers' fears, assuring them they will get paid, despite the budget impasse.

"I want to make darn sure you guys are paid, you guys are paid on time, you don't miss any payroll, and you're paid 100 percent of your salary, not some lesser amount," Rauner told a group of state employees at the Illinois Emergency Management Agency in Springfield on Tuesday. "It's going to be a stressful time for your families. I apologize for that. We're going to try to minimize the stress on your families. We're going to allow you to do your work."

CBS 2 has learned Illinois Secretary of State's offices, state parks, the Illinois State Police, and state prisons won't be affected.

However, social services provided by private vendors face an uncertain future, because there's no telling if or when they'll get state funding they rely on to keep running. For example, that might mean low-income families would lose out on childcare subsidies.

"It is possible that they would not be eligible to receive that subsidy that would then cause them not to be eligible to participate in programs like our day camps," said Fran Bell, executive director of the South Side YMCA.

Experts at the conservative-leaning Illinois Policy Institute said no one should panic yet.

"July 15th is the date that payments are actually due, so the state can more or less still operate in the same fashion, especially with the governor saying that he's going to keep them open," said IPI vice president Matt Paprocki.

To come up with a budget plan for the entire fiscal year, lawmakers and the governor must find a way to fill a nearly $4 billion deficit. Democratic lawmakers have said a tax increase is necessary on top of spending cuts; but Rauner has called for the legislature to approve his so-called "turnaround agenda" – which includes changes in worker's compensation laws, limiting collective bargaining rights, and changes to rules governing lawsuits – before he'll consider a tax hike. He also wants a property tax freeze.

Madigan has called Rauner's demand for lawmakers to approve his turnaround agenda in exchange for a budget as "extreme," and said the various business changes Rauner wants would hurt the middle class.

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