SPRINGFIELD, Ill. (AP) — Illinois Gov. Bruce Rauner is asking heads of state agencies to prepare for state funds to run out if he and Democratic lawmakers can’t reach a deal on a 2016 budget.

The Republican governor addressed members of his cabinet Wednesday.

He says the more than $400 million in cuts he announced Tuesday for the fiscal year that begins July 1 is “just the first step” to reduce spending. He warned them to be ready for possible restructuring.

Democrats approved a $36.3 billion budget that’s more than $3 billion short of revenues. Rauner says he won’t sign an unbalanced budget. He wants lawmakers to approve his legislative priorities — such as a property tax freeze — before he’ll consider a tax increase.

House lawmakers return to Springfield on Thursday.

 

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