SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
Fitch affirms Illinois GO Bond rating

Friday, Apr 18, 2014

Posted by Barton Lorimor (@bartonlorimor)

* Fitch Ratings stuck with its “A-” rating and “Negative” outlook on Illinois’s general obligation bonds. From the explanation…

BUDGET TEMPORARILY STABILIZED WITH TAX INCREASE: Temporary increases in both the personal and corporate income tax rates, coupled with statutory spending limits, have closed a significant portion of the structural gap in the state’s budget through the current fiscal year 2014.

NEED FOR LONG-TERM SOLUTION REMAINS: Due to the temporary nature of the enacted tax increases, the state will need to find a more permanent solution to the mismatch between spending and revenues. The Negative Outlook reflects the critical need to address this issue. The governor’s recommended budget for the coming fiscal year would make these tax increases permanent and provide a basis for the state to achieve fiscal balance.

LARGE BALANCE OF DEFERRED PAYMENTS REMAINS: The state has a large general fund accounts payable backlog, which although reduced still totaled $4.2 billion at the end of fiscal 2013. The state prudently used higher than forecast income tax collections in fiscal 2013 to pay down a portion of the accounts payable balance.

That extra boost in revenue last April brought on by recession inspired income tax receipts put a big dent in the backlog. The Comptroller’s Office recently estimated there is another $2.2 billion in unpaid vouchers being held at the agencies in addition to the reported vouchers and transfers. (Full transparency: I work for the Comptroller.)

More from Fitch…

The governor has proposed two alternative budgets for fiscal 2015; one based on current law with expiring tax rates and a second recommended budget that makes permanent the higher tax rates. The current law budget is balanced through large spending cuts. Even with the higher taxes maintained, however, the recommended budget would rely on a small interfund borrowing ($170 million or 0.4% of forecast general fund revenues) to balance. The recommended budget includes a total of $650 million in interfund borrowing, the balance of which would be used to pay down accumulated accounts payable.

* A budget roundup…

* State approves prison hepatitis C drug, likely to cost millions: Officials say there are an estimated 100 to 150 inmates at each of the state’s 25 prisons who have the disease…Documents show the state estimates the cost of treating an inmate with Sovaldi will range from $61,000 to $122,000.

* SIU budget cuts could cost hundreds of jobs: “With a $23.5-million dollar decline in our appropriation it will get into the hundreds of people that we will not be able to rehire,” said Dr. Glenn Poshard. “There may be layoffs, but there certainly will be hundreds of positions left unfilled.”

* SIU Board Staves Off Tuition Increase

* Heartland College concerned about Quinn’s budget plan

* Fair Tax supporters meet with lawmakers in Decatur

* Funding for Illinois school education under fire

- Posted by Barton Lorimor        


3 Comments
  1. - Grandson of Man - Friday, Apr 18, 14 @ 8:39 am:

    “The governor’s recommended budget for the coming fiscal year would make these tax increases permanent and provide a basis for the state to achieve fiscal balance.”

    This is another reason why the so-called “Fair Tax” could be the best option. Since we need the revenue that the current tax rate gives us, we may be able to do it better when more people get a tax break through progressive taxation.


  2. - PublicServant - Friday, Apr 18, 14 @ 8:40 am:

    ===The governor’s recommended budget for the coming fiscal year would make these tax increases permanent and provide a basis for the state to achieve fiscal balance.===

    ===The state prudently used higher than forecast income tax collections in fiscal 2013 to pay down a portion of the accounts payable balance.===

    Ty needs to give Fitch a call, and explain that budget cuts are what this state needs to balance the budget, not making temporary taxes (which did nothing but increase the amount of uncertainty about the long term viability of state finances) permanent. And R Eden needs to chime in about never…ever…mentioning fiscal balance and tax increases in the same sentence. I demand the Civic Committee do this immediately, and expect Fitch, chastened, to issue an amended statement post haste!


  3. - wordslinger - Friday, Apr 18, 14 @ 8:49 am:

    The writing’s on the wall: the rating agencies will whack the state’s credit rating if the income tax increase expires.

    Can’t say you haven’t been warned.


Sorry, comments for this post are now closed.


* NFIB member poll: 88 percent want Rauner to keep pushing Turnaround Agenda
* AFSCME advances bill that Rauner admin says "we cannot afford"
* Kim Foxx launches first TV ad "Amen"
* 2nd Annual "Cocktails with Capitol Fax"
* Has a "new" counter-point to the Tribune emerged?
* Credit Unions Assist At Risk Youth
* Question of the day
* Why I fight
* Parsons scores rare and highly unusual Obama interview
* Dunkin's defense
* Civic Federation wants spending limits and tax hikes: "There are no easy stop-gap fixes"
* *** LIVE SESSION COVERAGE ***
* "Mike Madigan's favorite state Senator"
* #Winning!
* In the spirit of the times...
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

  
* Facebook Tests SMS Integration In Messenger, Launches Support For Multiple Accounts
* Be the James Bond of the slopes in Operation Snowfall
* Drive Motors Lets You Actually Buy A Car Online. How Did This Not Exist?
* [TA Deals] Get started with an essential JavaScript coding bundle
* Audiobooks from Audible updated with Android Auto support
* PayPal Commerce Matches Stripe With PayPal’s Own Native Shopping Toolkit For Apps
* House bill aims to stop state bills banning smartphone encryption

* Lefty-heavy rotation not a concern
* Melky: White Sox must play like family to contend
* White Sox remodel in big way this offseason
* White Sox ink Ishikawa to Minor League deal
* White Sox sign righty Latos to 1-year deal
* White Sox sign Mat Latos for one year, $3 million
* Source: White Sox land right-hander Latos

...............


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0
WordPress

Loading


* AFSCME advances bill that Rauner admin says “we.....
* Gov. Bruce Rauner addresses local chambers abou.....
* Rauner to Democrats: Work with me or pass tax h.....
* Has a “new” counter-point to the Tribune emerge.....
* Friday Letters: Knock on Gov. Rauner shortsight.....
* House Democrats revive bill to send contract ta.....
* Downstate small-business group says, 'Attaboy, .....


* Aunt of teen accused in slaying charged with supplying gun
* Illinois News Digest
* Chicago man wins $1M lawsuit alleging police rigged lineup
* Lawmakers urge federal agency to build campus in Illinois
* Jury sides with Illinois man in excessive force lawsuit
* Illinois coal mine owner seeks expansion as fire lingers
* EXCHANGE: iPads enhance learning at Marion schools
* Chicago transit overhaul gets $156M in new federal funds
* 29 school districts get help financing building projects
* Illinois asks FEMA for more time to assess flood damage

* Lawmakers making second attempt to send AFSCME talks to arbitrator
* President Obama returns to his political roots, connects with past friends, supporters
* Bill aims to create foundation to raise private money for state fairgrounds
* Obama returns to his political roots, connects with past friends, supporters
* Presidential visit notebook: Obama doesn't like horseshoes?
* District 186 misses out on construction bond program
* Vehicle emissions test notices suspended amid budget impasse
* Rauner: Bureaucracy is holding Illinois back
* Peoria's Par-A-Dice casino laying off 40, cites impact of video gaming
* IDOT Traffic Safety Division moving to new Springfield location

* Rush hospital president to retire
* What's next for O'Hare's gate construction plan?
* O’Hare finally catching up with rivals in jumbo jet space race
* Heidrick & Struggles adds consulting firm for $9.2 million
* Choppy waters could greet Brunswick's new CEO


* Emanuel moves to close legal loophole exploited by pedicabs
* Andrea Goss: ‘Cabaret’ national tour is ‘a dream’
* Obama to honor Blackhawks Stanley Cup win at the White House on Feb. 18
* Blair Brown joining cast of Tracy Letts’ ‘Mary Page Marlowe’
* Marc Salem mines his audience for mind-blowing experience
* Bruce Springsteen memoir coming out Sept. 27
* Joel Quenneville: NHL admitted refs got it wrong
* ‘How to Be Single': Cast, dialogue a step above the average rom-com
* Occupiers at Oregon refuge say they’ll turn themselves in
* 3 Oregon occupiers apparently surrender; 1 refusing to go


* Aunt charged with weapons offense in Endia Martin slaying case
* Rauner, Madigan battle again on labor bill a day after Obama urged compromise
* Two child porn victims sue ex-state legislator now in prison
* Chicago to host NHL draft for first time; 'it's a big hockey town'
* Honorary street proposed for Jennifer Hudson's slain nephew
* Police: Chicago man shot after 'traffic altercation' in Evanston
* Girl, 16, among 2 wounded in West Side shootings
* Man shot on West Side
* 2 shot dead in Gary
* Justice Department enters civil rights suit against Ferguson in strong position


* Lawmakers making second attempt to send AFSCME talks to arbitrator
* President Obama returns to his political roots, connects with past friends, supporters
* Our View: Illinois officials should heed Obama's call for civility, compromise
* Bill aims to create foundation to raise private money for state fairgrounds
* Bernard Schoenburg: State GOP past $250,000 in support for Rep. Avery Bourne
* Eugene Robinson: Rubio's revealing loop
* Derrik Gay: Reducing fossil fuel dependence aids U.S. troops
* George F. Will: Break the teeth-whitening monopoly
* Obama returns to his political roots, connects with past friends, supporters
* Presidential visit notebook: Obama doesn't like horseshoes?


* Chicago Auto Show 2016
* Senators: Let female WWII pilots into Arlington Cemetery
* 02-11-16 Dr. Jan Slater Dean of the @collegeofmedia @illinois_alma
* 02-11-16 Penny for Your Thoughts
* Illinois asks FEMA for more time to assess flood damage
* Lawmakers urge federal agency to build campus in Illinois
* Illinois coal mine owner seeks expansion as fire lingers
* N. Korea orders military takeover of inter-Korean factories
* Occupiers at Oregon refuge say they'll turn themselves in
* 52 dead in riot at northern Mexico prison


* Des Plaines woman dies in three-vehicle crash in Park Ridge
* State suing Barrington Mobil station that leaked gas
* Replay officials could have more say in targeting penalties
* Yellen: Too early to determine impact of global developments
* US urges China-Taiwan talks amid uncertainty after election

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Durbin & Duckworth Seek EPA Review of Lead......
* Lawmakers urge federal agency to build cam......
* Lawmakers urge federal agency to build cam......

* Lawmakers urge federal agency to build cam......
* Letter supporting Sen. Kirk's call for DOJ......

* Where's Weyermuller? Front & Center on Wilmette Tax and Spending
* Devall: It's about who Ben Carson is not
* No public access to Obama's speech in Illinois House chamber
* Mathieson: Too Much Taxing? McHenry County Nursing Home Has $43M in the Bank
* Huston: Obama scolds Illinois on building "better politics"
* Jarrett probably misunderstood
* Richard "Rick" Cenar: In his own words
* REALTORS®: Mark your calendar for Feb. 18 Legal Webinar
* Judge Marguerite Quinn interviewed on NTNM
* That crazy Marco Rubio.


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller