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.
Illinois moves closer to becoming first ‘junk’ state with negative credit outlook
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.
Pritzker’s accounting gimmicks can’t fix pension crisis, but real reform can
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.
S&P to Pritzker: Pension reform only way to avoid ‘junk’ credit rating
A report from one of the largest credit rating agencies criticized Gov. J.B. Pritzker’s “dubious” budget proposal for avoiding necessary fiscal reforms.
States with a progressive income tax more vulnerable to fiscal shocks
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.
Illinois borrows $1.5B as S&P confirms rating is one notch above junk
S&P Global Ratings has warned that Illinois’ bond sale to help pay old bills could merely add more debt to Illinois’ burden if the state does not also enact fiscal reforms.
Fitch keeps Illinois’ credit above junk but negative outlook remains
Of the three major ratings agencies, only Moody’s Investors Service has indicated that Illinois lawmakers’ lack of long-term solutions for reducing that debt is a severe problem.
Moody’s right, S&P wrong on Illinois budget
Illinois’ bond rating may not be junk, but the state’s finances still are.
Illinois budget deficit projected to hit $6.2B by June 30, grow to $7.7B by June 2018
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.
Illinois has the lowest credit rating on record for a U.S. state
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.