Illinois has the nation’s worst credit rating. What does that mean?

Moody's Investors Service downgraded the state's rating from A1 to A2. The change was prompted due to inaction on the part of the state legislature, which "took no steps to implement lasting solutions to its severe pension underfunding or to its chronic bill payment delays," Moody's said in its report.

It almost sounds childish: Illinois Governor Pat Quinn's justification for signing an unfunded budget.

Ohio just recently passed its FY 12-13 budget. The budget passed both houses and was signed by Governor John Kasich on the last possible day he had to sign the budget before the end of the legislative session.

Chief Judge Kathleen Gearin ruled against Democratic Governor’s Mark Dayton’s request last Thursday to order stalled budget talks into mediation. Judge Gearin said, according to the Alberta Leon Tribune, that the executive and legislative branches of government have “institutional competency” to resolve the budget impasse.

Iowa Governor Terry Branstad stated on June 16 that he would release plans that would go in effect in the case of a government shutdown. On June 17, however, his administration's stance was that such plans do not exist.