University of Illinois President Timothy Killeen said the school will put off any consideration of raises for the coming school year until the state budget situation is settled.
Gov. Bruce Rauner and Democrats could not agree on a 2016 budget before the fiscal year started Wednesday. That has created concerns that parts of the government could shut down.
Killeen said in an email Wednesday to the university's more than 20,000 employees and roughly 78,000 students that the university will be able to continue to pay employees and vendors "for the short term."
Killeen noted the university has other sources of revenue.
The state provides about 11 percent of the university's $5.6 billion operating budget.