Report: More Illinois debt likely following misuse of federal aid money

By Patrick Andriesen

08/23/2022

A Truth in Accounting report argued state authorities should have used billions in federal aid to pay down interest on existing pension debt rather than save it for a rainy day. Experts warn this could lead to more state borrowing.

TAGS: borrowing, credit rating, debt, Truth in Accounting

5 things wrong with Illinois holding 30% of U.S. pension bond debt

By Aneesh Bafna

09/10/2021

Pension obligation bonds, like payday loans, are a sign of mismanaged finances. Illinois not only leads the nation for using that risky debt, it owes the bulk of it.

TAGS: credit rating, debt, Illinois, pension obligation bonds

Pritzker seeks credit upgrades despite growing pension debt, budget deficits

08/17/2021

Pension debt is a record $144.2 billion while Illinois’ short-term debt is on track to reach $22 billion in three years, exceeding the record $16.7 billion hit during the budget impasse.

TAGS: credit rating, debt, JB Pritzker, pensions

Illinois’ mountain of debt will be Madigan’s fiscal legacy

01/12/2021

Decades of institutionalized financial mismanagement left Illinois with the nation’s worst fiscal health. Illinois House Speaker Mike Madigan has been at the center of nearly every bad decision along the way.

TAGS: corruption, credit rating, debt, Mike Madigan, pensions, taxes

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

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

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

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

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

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

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