HARRISBURG — People who work for Pennsylvania's state government or do business with it are getting ready for the impact if the state's new fiscal year starts Wednesday without a budget in place.

There was little sign of progress today, with Republicans pushing a spending plan without any tax increases while Democratic leaders were lined up behind Gov. Ed Rendell's mixture of cuts and tax hikes.

State workers will have to stay on the job, but they won't be paid for work after July 1 until the deadlock is resolved.

The state will still make bond, pension and welfare payments, while counties and school districts will have to dip into their bank accounts.

A Rendell spokesman said some vendors can go months without payment, but others will suffer under significant delays.