Flickr user 401(K) 2012 / "Money" (CC v. 2.0)

Illinois has gone 19 months without a budget, and a credit rating agency says that's further deteriorating the state's fiscal status.  

Analysts at S&P Global Ratings say the American economy had about eight years of growth since the recession. Many states have used that time to pay off debt and build up reserves.  But S&P’s Gabe Petek says Illinois has gone in the opposite direction, letting its debt balloon.

S&P Lowers State Rating Once Again

Aug 29, 2012

Illinois’ large budget imbalance and an $83 billion unfunded pension liability have led Standard & Poor's Ratings Services to lower the state’s credit rating from A-plus to A.

Today’s announcement also gives Illinois a negative outlook for the future.

The action on the state's general obligation bonds comes less than two weeks after a special Illinois legislative session on pension reform ended with no resolution on reining in the pension costs.