The budget stalemate means big problems for local social service agencies. Many Rockford parents are now facing a serious dilemma, as their child care support gets the axe.

"A B C D E F G," sings Joshua Ireland. Joshua learned his ABC's at Circles of Learning Day Care Center in Rockford. But that education could be in jeopardy now that Illinois lawmakers failed to get a budget passed on time.

"I was really hoping that they would look at the big picture and really consider, 'Are we willing to sacrifice our children, are we willing to sacrifice all these human services programs out there that really need help?'" says Jeanette Ireland, Joshua's mom.

Effective Wednesday, the income eligibility requirements are changing for state child care assistance. To qualify for aid, parents now can only make up to 185 percent of the poverty level, instead of 200 percent.

"A family of three that's making 32-thousand a year will no longer be eligible for child care and what that means is if she has two children, she will pay over 56-percent of her income for child care," says Circles of Learning Executive Director Diane Stout.

"I'm making more than what they actually are looking for, so I will lose it and I'm still going to need it," says Circles of Learning mom Tasheika Ramsey.

Ramsey is getting hit with a double whammy because she also is in school right now and that's another group impacted by the cuts. Any parent who is pursuing a degree, but is not on public aid also loses child care assistance.

"What do I even do? And I'm not going to drop out of school, because raising her and taking care of her, that pushes me further to want to get my career and do better for her," says Ramsey.

Ramsey and Ireland both say many parents will now have to quit their jobs or school to care for their kids. Stout says this kind of cut encourages the cycle of poverty.

"If we don't want people on public aid we have to be willing to pay for the support services that enable them to remain self-sufficient," says Stout.

The picture will only get bleaker unless state lawmakers strike a deal. Legislators have to change state law to further lower income eligibility. But starting January 1st, the child care system is expected to take a 78-percent cut. A family of three will only qualify for aid if they earn 9,000 a year or less.

As they lose students, Circles of Learning is starting to consider employee layoffs.