By Eric Stock
SPRINGFIELD – Illinois continues as the state with the lowest credit rating with another round of declines that started nearly a decade ago.
Moody’s and S&P Global Ratings downgraded Illinois’ bonds to just above junk status after the legislature failed to pass a balanced budget. That’s the lowest rating and state has ever had.
Moody’s says political gridlock is why Illinois hasn’t address its mounting pension debt and $14 billion bill backlog. S&P has downgraded Illinois seven times since 2009 and said it’s in a negative credit spiral.
“Two credit downgrades in 24 hours further underscores the need for a full, balanced budget,” Illinois State Treasurer Michael Frerichs said in a news release. “My warnings were ignored and credit agencies have responded. We need a bipartisan budget now to end this crisis.”
Illinois Comptroller Susana Mendoza said her office will continue triaging how to make payments to Illinois’ struggling schools, nursing homes, hospice centers and aging facilities from a near-empty bank account.
“We’re about to reach the breaking point at which court-ordered payments will exceed the state’s revenues,” Mendoza said in a news release. “Illinois’ sick, elderly, young, and most vulnerable are paying the price. This crisis is untenable, unconscionable, and unnecessary. It’s time that the Governor stop campaigning and take responsibility for his failures and fulfill his constitutional mandate to introduce a balanced budget.
Eric Stock can be reached at [email protected].
Illinois Radio Network contributed to this report.
