Gov. Bruce Rauner has informed state agency leaders that funds may dry up if there is no resolution on the state budget.

Rauner says the $400 million in cuts he unveiled on Tuesday is "just the first step" in his plans to reduce spending in the state and warned agency heads that some restructuring might be a possibility in the near future, according to the AP.

Democrats passed a budget that is $3 billion short, but Rauner says he refuses to sign a fiscal plan that is not balanced. The governor is pressing lawmakers to pass a plan that incorporates elements of his "Turnaround Agenda" before he will look at the possibilty of bringing in new revenues by way of taxes. 

The Illinois House will enter a special session on Tuesday to work on the state's budget.