CHICAGO – Illinois Comptroller Judy Baar Topinka estimated Friday that there will be a $1 billion impact on the state budget if Congress and President Barack Obama don't strike a deal before to stop the scheduled federal spending cuts and tax increases.

"Illinois is already spiraling in a mix of unpaid bills, unfunded liabilities, interest costs and credit downgrades," Topinka said in a release. "By going over the fiscal cliff, the federal government will essentially be wrapping an anchor around our ankle – and the consequences will be devastating."

Topinka estimated Social Security and income tax increases would lower Illinois tax revenues by up to $500 million. She warned that the fallout from the fiscal cliff threatens to push the state into a recession.