Retirement tax could be next if ‘fair tax’ passes, Moody’s says

By Adam Schuster

10/22/2020

The credit rating agency also said Illinois will soon pass the point of no return on public pension debt. It warned against schemes to stretch or delay pension payments.

TAGS: credit rating, fair tax, pensions, retirement tax

S&P: Illinois faces junk rating, large budget deficit even with progressive tax revenue

By Adam Schuster

10/08/2020

A credit rating agency found Gov. J.B. Pritzker’s ‘fair tax’ would fail to close the state’s deficit or adequately fund essential services.

TAGS: credit rating, deficit, fair tax, Standard & Poor's

Chicago needs a ‘wartime budget’ to face the COVID-19 crisis

By Adam Schuster, Ben Szalinski

04/28/2020

City leaders must prioritize critical spending – and avoid hiking taxes on a struggling economy.

TAGS: Chicago, coronavirus, COVID-19, credit rating, emergency, Lori Lightfoot, pensions

Federal Reserve throws credit lifeline to near-junk Illinois

By Adam Schuster

04/16/2020

The Federal Reserve announced unprecedented plans to directly purchase up to $500 billion in state and local government bonds. States with poorly managed finances, such as Illinois, stand to benefit most, but long-term threats loom without structural reforms.

TAGS: bonds, borrowing, coronavirus, COVID-19, credit rating, Federal Reserve, rainy day fund

Illinois moves closer to becoming first ‘junk’ state with negative credit outlook

By Adam Schuster

04/12/2020

Illinois’ financial outlook was changed from ‘stable’ to ‘negative’ by two major ratings firms, raising the risk the state’s credit rating will formally fall to non-investment grade status.

TAGS: bonds, credit rating, debt, Moody's Investor Service, Standard & Poor's

Pritzker’s accounting gimmicks can’t fix pension crisis, but real reform can

By Adam Schuster

02/21/2020

Illinois Gov. J.B. Pritzker previously floated a pension plan that included pawning-off state assets, taking on more high-interest debt and reducing pension funding before walking back the plan amid criticism. Here’s a real solution.

TAGS: bonds, budget, COLA: cost of living adjustment, credit rating, fair tax, Illinois Constitution, Illinois Department of Revenue, JB Pritzker, Moody's Investor Service, pensions, progressive income tax, Standard & Poor's

State of Illinois previously owned helicopter in crash that killed Kobe Bryant

By Austin Berg

01/26/2020

The state sold the helicopter in 2015 to ease budgetary pressures.

TAGS: budget, credit rating, Illinois, Kobe Bryant, Los Angeles Lakers, Moody's Investor Service, NBA: National Basketball Association, Springfield

Madigan celebrates 35th anniversary as Illinois House speaker

By Austin Berg

01/12/2020

Illinoisans will soon cast a vote on the biggest ballot question in the history of Madigan’s record-breaking speakership.

TAGS: credit rating, Daley, debt, fair tax, FBI: Federal Bureau of Investigation, federal investigation, graduated income tax, house rules, House Speaker, ILGA: Illinois General Assembly, Illinois, Illinois Constitution, legislative map, lobbying, Mike Madigan, patronage, progressive income tax, property taxes, redistricting, Richard Daley, Springfield, tax burden, U.S. Census Bureau

Oak Lawn credit rating hits junk status amid skyrocketing pension costs

By Brad Weisenstein

01/07/2020

Massive increases in public safety pension contributions have failed to keep Oak Lawn’s credit from being downgraded to junk status. The Chicago suburb’s leaders are fighting cuts and tax increases, which are inevitable without pension reform in Springfield.

TAGS: credit rating, firefighter pensions, IDOI: Illinois Department of Insurance, Moody's Investor Service, municipal pensions, Oak Lawn, police pensions, public safety

Chicago student enrollment dropped by 6,000, but union blocks closing schools

By Ben Szalinski

11/22/2019

The new contract continues a moratorium on school closings despite plummeting student enrollment.

TAGS: Chicago, contract, CPS: Chicago Public Schools, credit rating, CTU: Chicago Teachers Union, enrollment, funding guarantee