SPRINGFIELD – Government experts who run the numbers estimate Illinois could lose $1 billion in federal revenue if President Barack Obama and Congress cannot reach a budget agreement and allow the economy to plunge off the so-called "fiscal cliff."

But more unpredictable – and perhaps more worrisome – is what impact another recession, spurred by the possible federal free fall, would have on Illinois. The state could lose an additional $1 billion because of sagging tax revenue beginning next month and running through at least mid-2014.

States are anxiously monitoring the faceoff between Democrat Obama and House Speaker John Boehner, an Ohio Republican, who are trying to reach a budget deal to avoid automatic tax increases and nearly across-the-board spending cuts that would take effect Jan. 1, a deadline set last year when the two sides reached a federal debt-ceiling pact.