This interview was featured on WSIL-TV on July 10, 2015. 

The state comptroller’s office has promised to issue paychecks to state workers next week.

But the lack of a state budget deal is creating legal hurdles.

Two courts have given opposing opinions on whether state workers should be getting paid right now.

The attorney general claims it’s against the constitution to issue paychecks without a budget. But several unions have filed a lawsuit demanding workers be paid in full.

It’s a legal battle that could end up in the Illinois Supreme Court.

“This is unfair and harmful to a lot of lives in the state,” said Illinois Treasurer Michael Frerichs.

Due to the budget impasse in the legislature, state courts have tried to resolve the problem.

But even they are disagreeing. A Cook County judge says the constitution prohibits paying workers without a budget.

But a St. Clair County Judge ruled not paying state workers violates the constitution’s prohibition on “impairing a contract.”

“The situation is very uncertain,” said Jeff Schwab, a staff attorney with the Liberty Justice Center.

Not paying employees could mean fines and penalties for the state under federal rules, Schwab said.

He argues state courts are overstepping by ruling on this issue.

“The courts really shouldn’t be making pay decisions in the absence of a budget,” Schwab said.

Schwab says a temporary state budget deal could solve this problem.

There have been several proposals approved by the state legislature – but Governor Rauner has said he will veto them.

Meantime, legal analysts expect decision making by the courts on state paychecks – to be a long process.

“Inevitably we are going to have appeals,” Schwab said.

The state treasurer has said credit unions have agreed to offer interest free loans to members for a month if this problem isn’t sorted out.

These loans would be limited to 50 percent of a member’s salary.