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

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

Moody’s report: Illinois one of two states unprepared for next recession

By Adam Schuster

05/21/2019

Financial stress testing shows Illinois and New Jersey are the most unprepared for the next recession. Both states lack sufficient rainy day funds and struggle with large pension debt.

TAGS: debt, Moody's Investor Service, municipal pensions, pension guarantee, pensions, recession, revenue

Moody’s: New taxes could accelerate Illinois exodus

By Vincent Caruso

02/08/2019

Ahead of Gov. Pritzker’s first budget address, one of the “big three” credit rating services warned the new governor against raising taxes.

TAGS: bonds, credit rating, JB Pritzker, Mike Madigan, Moody's Investor Service

States with a progressive income tax more vulnerable to fiscal shocks

By Vincent Caruso

09/25/2018

Despite finding favor among some politicians and political candidates in Illinois, states with a progressive income tax are more vulnerable during recessions than flat-tax states.

TAGS: income tax, Moody's Investor Service, progressive income tax, Robert Martwick, Standard & Poor's, taxes

Moody’s: Illinois pension debt-to-revenue ratio hits all-time high for any state

By Adam Schuster

08/31/2018

According to a new report by Moody’s Investors Service, Illinois’ unfunded pension liabilities equaled 601 percent of state revenues in 2017, a U.S. record.

TAGS: bonds, credit rating, debt, employment, harvey, Moody's Investor Service, municipal pensions, pension guarantee, pensions, Peoria, taxes

Moody’s: Janus win potentially credit positive for Illinois

By Adam Schuster

06/27/2018

A landmark case on worker freedom could have positive effects on Illinois’ fiscal health, according to a leading ratings agency.

TAGS: AFSCME: American Federation of State County and Municipal Employees, budget, credit rating, Janus v. AFSCME, Moody's Investor Service, pensions

Illinois bonds once again rated just above junk

By Adam Schuster

04/10/2018

One rating agency cited Illinois’ “persistent crisis-like budget environment” as explanation for the state’s near-junk credit. A spending cap constitutional amendment and pension reform could go a long way toward putting the state on a healthier fiscal path.

TAGS: bonds, credit rating, Moody's Investor Service

Illinois’ new budget already has $1.7B hole despite largest permanent tax hike in state history

By Ted Dabrowski, John Klingner

10/14/2017

Every budget through 2023 will likely be unbalanced as well.

TAGS: balanced budget requirement, budget, credit rating, Governor’s Office of Management and Budget, income tax, Moody's Investor Service, taxes, unpaid bills