Standard & Poor’s rating services downgraded Illinois’ credit rating today to A-, with a negative outlook, making it the lowest rating of all 50 states.
State Treasurer Dan Rutherford blamed the negative rating on inaction on the public pension system by Gov. Pat Quinn and the general assembly, at a press conference today. Illinois has a $96 billion pension deficit.
Rutherford pointed out numerous instances in which the state had set a deadline to address pension reform and did not meet the deadline, which was followed by a downgrade in the state’s credit rating.
“Every time a deadline is set and nothing happens substantively, there is a negative action by rating agencies, Rutherford said.
Rutherford explained that the poor credit rating affects the state the same as a poor credit rating would affect an individual.
“If you went out to borrow 500 dollars, because you have such bad credit, it will cost 95 dollars more in interest than better rated states,” Rutherford said.
“This is absolutely bad news of for taxpayers; this affects what we are paying in interest as opposed to principal,” he said. He said the poor credit rating will have an effect on state universities, road construction and other public institutions because as projects are paid for, more will go to interest than principal.
Rutherford said state leaders need to cut the budget and address pension reform.
Standard & Poor's credit analysts say the downgrade reflects what the agency sees as the state's "weakened pension-funded rations" and lack of action on reform measures to improve the state's worst-in-the-nation pension crisis, according to AP.
This is a union labor stronghold that has bought and sold politicians and has driven out businesses and bankrupted governments. There isn't a single government agency in Illinois that isn't mismanaged or corrupt. From the Tollway Authority, to the MPEA, CTA, RTA, MWRD pick the acronym, it's nothing more than a patronage employee scheme that squeeze money and businesses out of Illinois. We are moving and taking our business with us and will never look back. If you're crazy enough to stay and put your financial security and future into the hands of Illinois government, I admire your optimism, but question your judgement. Illinois is worse than dead, it's on (very expensive) life support, and you're picking up the tab.
To RB: Simply put so even you can understand this. You Sir or Madame or even both. are a Pompous ASS
Listen, this isn't so much about governors, so those who are bringing up the names of different governors... that's not the crux of the problem. Chicago, as the state's largest city (by far) with the most public union employees and the most state reps, holds the cards. It's the Democrat 'machine' politics of Chicago that has got the state into this mess...it's not hard to connect these dots, is it? Glenn, this is not like finger pointing at Congress and asking ourselves who the bigger obstructionist is, Harry Reid or John Boehner. This is simple. It's right in front of our eyes. The Democrats in Chicago have ruined the financial solvency for the entire state of Illinois. For anyone in denial, as Glenn is here..shame on YOU for not facing the facts.
One thing we've learned from this last election is that the Democrat base will believe anything the Democrat leadership throws out there as long as it makes Republicans look bad. I am prepared to believe that they could blame the mess on Edgar, and that the rank and file Dems would buy it. But.... ...what happens after that? The Dems are in power and things are falling apart. Now I know they are waiting for the "recovery" to come around and pull their butts out of the fire, but since Obama got re-elected there's no chance of that happening, so they are staring at 4 years of economic deterioration which means 4 years of excuses and casting blame on anyone but themselves and their constituents. This should be interesting to watch.
Also, the Democrats and Madigan have controlled the house for all except TWO of the past THIRTY years. This is a DEMOCRAT/UNION problem.
We have one liberal poster continue to bring up the fact that Illinois has had its share of Republican governors, so the Republicans are to blame in part for the sorry state of our state. And we have another who resorts to her typical name calling as a debate tactic. No reasonable person can disagree with the final answer; Democrats, particularly the Democrat 'machine' in Chicago, has ruined the fiscal solvency of our state. The bizarre thing about this is that Illinois Democrats are embraced in D.C. and by the liberal elitists of the northeast. Why is that? Why is someone like Dick Durbin positioned to be the next Senate majority leader when his own state is so god awful. Why didn't Barack Obama pay any kind of penalty for being from Illinois?
This goes back to the advent of public employees being unionized and the Democrat party doing the tango with them, in vicious cycle 'negotiations', over and over and over. No, this is not a debate about R or D. Which party benefits from the votes of Illinois public employees? Where are most of these employees located? This is not a debate at all. Why can't liberals admit, for once, that it's the Democrats fault that things are so bad in Illinois?
To put this in context, the total pension debt-per-household in Suburban North West Cook County is $35,774