A federal judge has ruled against state employees in a dispute over whether Gov. Pat Quinn can cancel raises promised in union contracts.

The American Federation of State, County and Municipal Employees said Thursday it will appeal the ruling.

The union says Judge Sue Myerscough questioned the governor's actions and said he could simply have asked legislators for more money rather than canceling raises. But she ultimately ruled Wednesday that his action wasn't an illegal "impairment" of the contract.

The Democratic governor canceled raises that were supposed to take effect July 1. His move affected about 30,000 state government employees.

Quinn said lawmakers didn't provide enough money to provide the required raises and still keep government running for a full year.

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