Two days into the fiscal year, Illinois social service agencies and the people they work with are beginning to feel the bite from the state's budget impasse.

The Arc of Rock Island County issued layoff notices to 38 people, while Bethany for Children & Families furloughed workers, too.

Meanwhile, other agencies are waiting nervously. Many have developed contingency plans to cut services and staff in the event the stalemate drags on longer.

Gov. Pat Quinn vetoed a proposed budget Wednesday that provided only half the requested funding amounts. That sent the state into the new fiscal year without a spending plan.

Arc of Rock Island County, which works with the developmentally disabled, not only issued layoff notices Wednesday but also told 85 people their services will be terminated July 15.

The agency said in a statement Thursday that it was required to sign a contract with the state Department of Human Services that terminates grant support for respite, client and family support, regular work and community employment services.

In a statement, Arc estimated the cuts at $1 million and said the state already owes it $2.1 million in delayed payments going back to March.

"It is a sad day for people with disabilities and the entire social services safety net," Deborah Johnson, the agency's director of development and communications, said in the statement. "We are completely dependent on Gov. Quinn and the Illinois legislature to change the course of these devastating cuts."

At Bethany, officials furloughed nine people Wednesday, only to bring five back after learning of a federal court order preventing the state from implementing cuts in some state programs.

Bethany had shut down its Therapeutic Recreation Program, which serves about 45 at-risk kids. It will start back up Monday.

In the meantime, kids and their parents were left trying to figure out what to do.

"We weren't hearing anything," said Karen Relf, program supervisor. "We didn't have a budget signed. We didn't have any direction."

A day treatment center also is covered by the court order, but a program that dealt with juveniles wasn't.

Four workers there are still on furlough.

"We are in flux with them," Relf said.

Other agencies, while not having to cut services or staff yet, continue to face uncertainty.

"We're going blindly into the new year," said Angie Kendall, family service provider at Skip-A-Long Child Development Services.

With child care subsidies at risk, she said parents are in limbo about where their kids will be when they're at work.

Many also are wondering what they'll do for the fall, with the start of school just around the corner.

Some are considering moving their kids to day cares in Iowa.

"It's really got our parents in a panic," Kendall said.

At the InTouch Adult Day Care Center, services are still being maintained, said Lynda Vogt, program director.

Asked how they're paying the bills, Vogt said the state usually is behind in reimbursing the agency, anyway. She didn't know for how long it will keep operating, however.

Vogt has put together a contingency plan that includes possible layoffs. Two dozen people work at the agency.

Under the doomsday budget, she said, 94 of its 156 clients would lose services. Their ages range from 20 to 94.

"Keeping them active and out of nursing homes is really the focus of the program," she said.