Illinois wasn't alone Wednesday in its failed efforts to beat a hard-luck budget deadline.

More than a half-dozen states, their revenues evaporating in the recession, frantically worked to stave off government shutdowns and devastating service cuts as they headed into new budget years without balanced spending plans.

Here, Democratic Gov. Pat Quinn rejected a key spending plan Wednesday, saying lawmakers shortchanged private agencies that care for the disabled and poor and left him with "no choice" but to veto the budget.

He called the cuts "disgraceful and shameful" and continued to demand a tax increase.

California failed to meet a midnight deadline and now may need to issue IOUs instead of paying bills. Gov. Arnold Schwarzenegger declared a financial emergency that forces lawmakers to work on nothing but the budget for the next 45 days.

Across the country, lawmakers were feeling the heat as their legislatures began the new fiscal year without a budget in place.

In Pennsylvania, talks between Gov. Ed Rendell and top legislators ended Tuesday night with no substantial progress, aides said. Rendell said he didn't think an agreement would come soon. The state faces the prospect of not being able to pay state employees if they cannot resolve an impasse.

The end of June marked the end of the fiscal year in many states, meaning lawmakers worked late Tuesday to pass budgets in a year that has seen the recession take a devastating toll on government finances.

Fallout from California's budget mess threatened to spread nationwide because of the sheer size of the state's economy. The Senate rejected three bills designed to save $5 billion, including $3.3 billion in education funding cuts that had to be enacted before Wednesday.

Senate President Pro Tem Darrell Steinberg, a Democrat, called Republicans' refusal to vote for the measures "an irresponsible position to take." At least two Republican votes were needed to put together the two-thirds majorities required to approve the legislation, which passed the Assembly last week with bipartisan support.

Arizona, Indiana, Ohio, Connecticut and Mississippi also were among other states that raced against the clock to pass budgets - and avoid crippling consequences.

Ohio on Tuesday passed a seven-day spending plan that will allow the state to keep operating while talks continue, the first temporary budget Ohio has been forced to approve in 18 years. On Wednesday, the House was considering a second seven-day budget to give lawmakers more time.

Indiana narrowly averted a large-scale government shutdown after coming to terms on a budget.

Mississippi lawmakers approved most of the $6 billion budget, but left one agency - the state's utility regulatory agency - unfunded. The Public Service Commission said it didn't know how the agency would continue to function, but Gov. Haley Barbour has said he can run the agency by executive order.

In Connecticut, Gov. M. Jodi Rell signed an executive order to keep the government running without a two-year budget in place. While she contends the average taxpayer won't notice any change, municipal officials fear delays in state grants that fund everything from road repairs to education.

In the wee hours Wednesday, the Arizona Legislature completed action on budget bills to implement most of a compromise $8.4 billion budget negotiated with Gov. Jan Brewer. Lawmakers omitted a sales tax increase that Brewer wanted, and her spokesman declined to say if she would sign the bills.

In Pennsylvania, state workers will receive only partial pay on July 17 and July 24, after which paychecks will be withheld entirely until the impasse is solved. They will then be paid retroactively.

Rendell said 10 banks and credit unions have agreed to help 69,000 state employees by offering them low- or no-interest loans and lines of credit.

In most states, the debate centers around whether states should be raising taxes to bridge the budget gaps.

In Illinois, Gov. Quinn said there's no way to solve the problems without a tax increase and threatened to veto anything that doesn't do so. On the other hand, Gov. Schwarzenegger said he wouldn't sign anything that raised taxes or fees beyond what he has already proposed.

"They should forget about that," the Republican governor said, accusing Democrats of going through a "song and dance. Let's get to work, fix it."

State Controller John Chiang has said he would have to start issuing the IOUs on Thursday unless lawmakers took steps to stem the state's red ink by then.

Roughly $3 billion worth of IOUs will be issued in July unless a compromise on closing the deficit is reached quickly. They will be sent to state contractors, college students, welfare recipients, low-income seniors, the disabled and others who depend on or deliver state services. Counties will not get paid for social programs they administer.

Daily Herald senior state government editor John Patterson contributed to this report.

States in crisis

Illinois was among more than a half-dozen states facing budget deadlines Wednesday. Here's how they fared:

Illinois: Gov. Patrick Quinn vetoes portion of plan cutting social services agencies and fails to act on remainder, demanding approval of tax increase to close multi-billion-dollar deficit hole. With the state lacking an operating budget, leaders of both houses call July 14 special session.

California: Failing to meet a midnight deadline, state may need to issue IOUs instead of paying bills. Refusing to approve any tax increase, Gov. Arnold Schwarzenegger declares a financial emergency.

Pennsylvania: With governor and lawmakers at impasse, state faces prospect of not being able to pay state employees.

Ohio: Passes seven-day spending plan that will allow the state to keep operating while talks continue.

Indiana: Narrowly averts large-scale government shutdown after coming to terms on a budget.

Mississippi: Lawmakers approve most of a $6 billion budget, but leave the state's utility regulatory agency unfunded.

Connecticut: Gov. M. Jodi Rell signs executive order to keep the government running without a two-year budget in place. Municipal officials fear delays in state grants that fund everything from road repairs to education.

Arizona: Legislature completes action to implement most of a compromise $8.4 billion budget negotiated with Gov. Jan Brewer, omitting sales tax increase that Brewer wanted.