"Wisconsin legislature is the only state that has failed to pass a budget and now it is having real consequences for real people in this state," says governor spokesman, Matt Canter.

It's turning into what appears to be a domino effect.

"We are now three months into the short fall and with each passing day we get deeper and deeper into the red," says UW executive director, David Giroux.

The longer lawmakers take to make decisions on the budget, businesses are being forced to make cutbacks. It's a topic that's heating up on the state's University system.

"The whole budget issue has gone on far too long and all the proposed cutbacks to the U-W are really disheartening to a student and somebody who's lived in Madison for many years," says UW grad student, Taylar Foster.

The lack of a budget come 2008 will cost the university system millions of dollars forcing them to cutback on teachers and faculty for next semester. This causing a shortage of classes and even students.

"To really save a lot of money," says Giroux, "you have to cut a lot of seats and that's something we simply don't want to do."

Giroux says it's up to lawmakers to make a decision on the budget. They're hoping the matter will be resolved before the first week in November when they'll be forced to make budget cuts.

"Right now our revenue and our expenses are way out of wack. It's not because we've been spending money that wasn't authorized, it's because the money that was supposed to be here on July 1 hasn't shown up yet."