Only 51 percent of black adults reported having some form of work in Illinois.View Report
Illinois’ bonds are currently priced like they are junk-rated.
Illinois’ credit rating spirals downward while residents flee to surrounding states with stronger economies and lower taxes.
Illinois universities have hiked tuition and relied on state subsidies to pay for exorbitant administrative salaries — and now credit rating agencies are punishing them for that destructive behavior.
The state’s bill backlog is expected to hit $22.7 billion and pension costs are predicted to grow 14 percent by fiscal year 2018.
Moody’s Investors Service cited Illinois’ $250 billion in pension debt and the lengthy budget impasse as reasons for its one-notch credit downgrade.
S&P cited Illinois lawmakers’ failure to pass a budget and the lengthy budget impasse as reasons for its one-notch credit downgrade. Over the years, Illinois’ state credit rating has been downgraded multiple times due to massive spending and excessive borrowing.
Illinois needs to enact structural spending reforms to avoid following Puerto Rico down the path to insolvency.
Another Band-Aid budget deal won’t fix the financial problems that plague Illinois or stop the state’s credit rating from falling to junk.
Credit rating agencies have warned Illinois’ credit could slide into junk territory if the legislative session ends in May without a budget deal to get the state’s finances back on track.
Illinois lawmakers should heed Moody’s Investors Service’s warnings about the state’s precarious economic health and dire fiscal situation and enact major structural spending reforms to balance the budget.