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

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

S&P to Pritzker: Pension reform only way to avoid ‘junk’ credit rating

By Vincent Caruso

02/24/2019

A report from one of the largest credit rating agencies criticized Gov. J.B. Pritzker’s “dubious” budget proposal for avoiding necessary fiscal reforms.

TAGS: bonds, credit rating, debt, municipal pensions, pension guarantee, pensions, Standard & Poor's

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

Illinois borrows $1.5B as S&P confirms rating is one notch above junk

By Ted Dabrowski, John Klingner

10/11/2017

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.

TAGS: bonds, credit rating, Standard & Poor's

Fitch keeps Illinois’ credit above junk but negative outlook remains

By John Klingner, Evelyn Hussey

07/20/2017

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.

TAGS: bonds, budget, credit rating, debt, Fitch Ratings, Moody's Investor Service, Standard & Poor's

Moody’s right, S&P wrong on Illinois budget

By Ted Dabrowski, John Klingner

07/13/2017

Illinois’ bond rating may not be junk, but the state’s finances still are.

TAGS: bonds, credit rating, Moody's Investor Service, Standard & Poor's

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 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