Ten states struggled to pass budgets before the Tuesday deadline, including Illinois. According to the Wall Street Journal, state governments could face partial shutdowns if budgets aren’t created soon.

In Illinois, the new fiscal year has already started with no budget, according to a St. Louis Post-Dispatch article.

The state will ultimately be more than $9 billion in the red for the fiscal year that starts today, Gov. Pat Quinn’s administration says, unless the Legislature provides new revenue. He has warned of potential deep cuts in human services such as day care subsidies and elder care, as well as interruptions in other state functions, if the budget gap isn’t closed.

State economies are so desperate they may even seek federal bailouts, many say. California has already asked for federal backing. Instead of asking for cash, they are asking the federal government to serve as more of a co-signer on loans, according to the Associated Press.

Although the Obama Administration already denied the request, many wonder what will happen to California if they don’t find a solution soon.

Fox News on TV this morning warned of a possible collapse in state government. California and other states could be unable to pay its police officers, firefighters and other city workers. In Illinois, human services will be cut along with the pay of social service workers.

In light of this desperate economic situation, should states receive the help of the federal government? Like GM and AIG, if state budgets get bad enough, we will have a choice?

If state budgets get out of control what could this mean for the nation’s already struggling economy?