The Quinn administration has terminated the contract between the state of Illinois and its largest public employee union.

Assistant Budget Director Abdon Pallasch (AB'-dun PAL--lish) said Tuesday that after 11 months of bargaining, state officials informed leaders of the American Federation of State, County and Municipal Employees there will be no additional extensions of a contract covering 40,000 workers that expired in June.

Pallasch says after extending the contract three times, union negotiators haven't made proposals dealing with retirement health care and continues to seek a pay raise despite the state's troubled finances.

Calling the administration's action unprecedented, AFSCME executive director Henry Bayer says the action will make reaching a contract more difficult.

Both sides agree the action will have no immediate effect because the contract terms remain in effect.