What’s a junk bond and why Illinois will be America’s first “junk” state

By Michael Lucci

06/16/2017

Illinois’ bonds are currently priced like they are junk-rated.

TAGS: bonds, budget, credit rating, general obligation bonds

Illinois’ neighboring states boast better credit ratings, economies

By Kevin Angell

06/16/2017

Illinois’ credit rating spirals downward while residents flee to surrounding states with stronger economies and lower taxes.

TAGS: credit rating, Indiana, Iowa, Kentucky, Michigan, missouri, outmigration, population, Wisconsin

Moody’s downgrades 7 Illinois universities, 5 are junk

By Ted Dabrowski, John Klingner

06/13/2017

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.

TAGS: budget, credit rating, CSU: Chicago State University, EIU: Eastern Illinois University, higher education, Illinois Board of Higher Education, Moody's Investor Service, NIU: Northeastern Illinois University, University of Illinois, University of Illinois at Urbana-Champaign, WIU: Western Illinois University

Illinois budget deficit projected to hit $6.2B by June 30, grow to $7.7B by June 2018

By Eric Kohn

06/08/2017

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.

TAGS: budget, credit rating, David McSweeney, debt, Moody's Investor Service, Standard & Poor's, unpaid bills

Illinois owes over $250 billion in pension debt

By Ted Dabrowski, John Klingner

06/01/2017

Moody’s Investors Service cited Illinois’ $250 billion in pension debt and the lengthy budget impasse as reasons for its one-notch credit downgrade.

TAGS: budget, credit rating, debt, Moody's Investor Service

Illinois has the lowest credit rating on record for a U.S. state

By Ted Dabrowski, John Klingner

06/01/2017

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.

TAGS: budget, credit rating, debt, Standard & Poor's

Puerto Rico’s ‘bankruptcy’ a warning to Illinois

By Ted Dabrowski, John Klingner

05/05/2017

Illinois needs to enact structural spending reforms to avoid following Puerto Rico down the path to insolvency.

TAGS: budget, credit rating, debt, municipal government, municipal pensions, pensions, puerto rico

5 consequences of Illinois’ bad budget deals

By Ted Dabrowski, John Klingner

05/02/2017

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.

TAGS: budget, credit rating

Illinois on track to become first ‘junk’-rated state in nation

By Ted Dabrowski, John Klingner

04/28/2017

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.

TAGS: Chicago, COGFA, credit rating, Moody's Investor Service, pensions, Standard & Poor's

Moody’s warning of an “inflection point” in Illinois signals need for spending reforms

By Ted Dabrowski, John Klingner

03/31/2017

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.

TAGS: budget, credit rating, grand bargain, Moody's Investor Service, outmigration