The standoff in Illinois between newcomer Republican Governor Bruce Rauner and long-time Democratic House Speaker Michael Madigan showed no sign of abating as the state approached a second full week without a budget for the fiscal year that started July 1.

 

"This could go on for weeks. Or a few months? It’s all uncharted waters at this point," Christopher Mooney, director of the Institute of Government and Public Affairs at the University of Illinois, said on Friday.

 

He said pressure to pass a budget eased with Rauner's signing last month of a funding bill ensuring schools will open on time in September. The pressure could ease further if state courts ultimately allow state workers to be paid without a budget.

 

While Rauner and Madigan exchanged barbs this week, Illinois continued to have the worst funded pension system and the lowest credit ratings among the 50 states.

 

The budget battle has not triggered any rating action that could push Illinois into the low-investment grade level of triple-B rarely assigned a state. That could change.