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.


* Economic trouble ahead?
* Chicago loses another great
* Today's quotable
* Question of the day
* *** UPDATED x1 *** A curious little e-mail survey
* Ploy or not, Chicago has to administer exams
* The master of understatement strikes again
* AG Madigan's "top 10" list
* The battle for Willie Wilson
* Motorcycle safety spending up while mass transit, Amtrak and DNR cut
* *** UPDATED x1 *** Cancer screening cuts decried
* Rookie mistakes
* Today's number: 2
* Two more problems for Aaron Schock
* 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

          
        * BBM update: customizable PIN, Android Wear support
        * Asus Republic Of Gamers G751 Review: Portable Gaming, Emphasis On The ‘Gaming’
        * Tim Cook teases Apple Watch launch apps, and its debut in Germany
        * Lenovo Vibe Shot: hands-on with the camera-centric smartphone | Pocketnow
        * IBM rolls out 3 new iOS apps for enterprises
        * Be the King of Thieves in Zeptolab’s latest on Amazon Appstore
        * Sony Xperia M4 Aqua vs Xperia Z3: head-to-head comparison (Video)

        * Tinder’s Premium Version Is Here — And Pricier for Older Users
        * How to Fake It 'til You Make It Without Being Deceitful
        * Stop Yourself from Crying with a Quick Pinch
        * Oculus Has Hired Mary Lou Jepsen Away From Google X
        * Here’s what the new Tinder Plus looks like
        * Hide Promoted Tweets, Trends, and Accounts with These Extensions
        * Deal Of The Day: 20% Off On Bayit Smart Wi-Fi Socket

        * Outfield prospect Hawkins not rushing his progress
        * Podcast: Good bye, Mr. White Sox
        * Minnie Miñoso an all-time great, all of the time
        * No one meant more to White Sox than Minoso
        * Beckham getting work around infield
        * Beloved Minnie was a Chicago treasure
        * Baseball mourns the loss of Mr. White Sox

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


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

        Archives
        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


        * Rauner targets unions in Lake County speech in .....
        * The battle for Willie Wilson..
        * Rookie mistakes..
        * Quinn among those affected by pension overhaul law..
        * Rauner Names Lake Forest Resident to Racing Board..
        * What is former Gov. Quinn earning as his monthl.....
        * Former Illinois Gov. Quinn earning $11,396 mont.....


        * Eastern Illinois U. names Bradley provost new president
        * Cubs to ask to work around the clock on Wrigley Field
        * PharmaCann to accept its 2nd marijuana grow permit
        * Former Gov. Quinn earning $11,396 monthly pension
        * Federal study: Foster kids struggle to get health screenings
        * Consumer debt, identity theft top Illinois consumer gripes
        * Slick freeway leads to Champaign-area interstate crashes
        * Illinois lawmakers to propose measure to battle heroin abuse
        * US Paralympians share tips at track clinic in Vernon Hills
        * Lady Gaga, Vince Vaughn take charity polar plunge in Chicago

        * Hunters, outdoorsmen hope for ally in Rauner
        * Tim Butler, congressional staffer, selected to fill former Rep. Rich Brauer's seat
        * Schock reimburses costs for lavish 'Downton Abbey' office decor
        * Brauer replacement could be chosen as early as Saturday
        * Quinn advocates consumer rights, blasts Rauner's budget
        * Rauner says he's 'staying out' of Chicago mayor's race
        * Quinn advocates consumer rights in Loyola speech
        * Judge won't delay sentencing for former state lawmaker Farnham
        * Lt. Gov. Sanguinetti says GOP should court women, Latinos
        * Explore salary information for the state of Illinois

        * Latest Aaron Schock money probe: Taxpayers footed $14,000 bill for private planes
        * Layoffs hit Crate & Barrel
        * Lincoln Park home built in 2008 fetches $3.1 million
        * CPS caves to $1.4 billion federal threat over Common Core test
        * Obama library a flashpoint in Emanuel, Garcia's fight for black vote


          * Grateful Dead tickets going for as much as $15K for 3-day run in Chicago
          * Man pulled out of the Chicago River in the Loop
          * Jimmy Carter, Condoleezza Rice to speak at tribute for Hesburgh
          * CPS reverses course, will administer controversial test
          * More delays for Wrigley Field bleachers, bathrooms
          * Rep. Schock billed taxpayers for private plane to Bears game
          * Police: Man punches pregnant girlfriend at Brookfield Zoo
          * Bulls' Jimmy Butler to miss 3-6 weeks
          * Federal study: Foster kids struggle to get health screenings
          * Dad delivers baby girl after pulling off Eisenhower


          * Houston Shredded: Springfield Mayor Loses Primary
          * Foundations Help Fill School Funding Gaps
          * Ex-Gov. Quinn Begins Collecting $137,000 Pension
          * Ex-Gov. Quinn Begins Collecting Six-Figure Pension
          * WUIS / SJ-R Business Report - Sprucing Up Springfield; Karpman Furs Closing
          * Will Rauner Get Tough On Getting Tough On Crime?
          * AP: Lawmaker Aaron Schock billed private planes, concerts to taxpayers
          * White Sox icon Minnie Minoso dies
          * Chronic Mismanagement Drove State Into Its Fiscal Mess
          * People


          * Jorge Chapa: Illinois' majority-minority future and the age-race shift
          * Quote of the Day: Monday, March 2, 2015
          * Hunters, outdoorsmen hope for ally in Rauner
          * Our Opinion: Looking for the leaders among Springfield's candidates
          * Statehouse Insider: That's not a nice thing to say
          * Rep. Rodney Davis and Rep. Mike Bost: Strong financial markets benefit Illinois
          * Quote of the Day: Sunday, March 1, 2015
          * Bernard Schoenburg: Report talk of Houston fundraiser just 'secondhand' info
          * Scott Zeramby: Consider the environment as marijuana industry emerges in Illinois
          * Tim Butler, congressional staffer, selected to fill former Rep. Rich Brauer's seat


          * Ice, rain and, yes, cold on the way
          * No excuse needed for absentee, early voting in April 7 election
          * Larry White
          * Belleville man sentenced to six years for burglary
          * Updated: Group puts UI in top 10 'worst colleges for free speech'
          * Updated: Sleet, freezing rain coming overnight
          * Natatorium opens at the Hub in Marion
          * Updated: New driver's facility will be in Round Barn Centre
          * How Islamic is Islamic State group? Not very, experts say
          * Firefighters battle Rock Island house fire


          * Snow, freezing rain could make Tuesday commute treacherous
          * Sabres send Mitchell, Flynn to Montreal
          * Ravens cornerback Victor Hampton arrested, cut by team
          * CBJ trade Wisniewski, Leopold, sign Atkinson to 3-year deal
          * Giants place franchise tag on DE Jason Pierre-Paul

          * Democrats divided on attending Benjamin Ne...
          * Mark Kirk's prepping for a barnburner — an...
          * Asylum Bill for Homeschoolers before US Ho...
          * Why are Democrats suddenly cheering in Ohi...
          * Jewish disability activists lobby Congress
          * Rep. Aaron Schock's wide travels raise que...
          * Duckworth returns to Washington; Will she ...
          * Hultgren Speaks Out Against Islamic State ...
          * Moniz defends DOE budget at House hearings...
          * Combined Insurance Honored as Top Military...

          * Barbara Mikulski Helped Lead the Pantsuit ......

          * Sen. Kirk: Chicago could end up like Detro......
          * Senate Republicans Reveal Their Supreme Co......
          * Midday News Links: Butler Joins Bulls' Inf......

          * Ralph Martire on the millionaire tax.
          * Happy birthday, Dr. Seuss.
          * Uptown Underground's Grand Opening Month Begins Tonight
          * State's outdated driver's licenses could keep Illinoisans from flying
          * Rahm Emanuel and Jesus Garcia ‘dead even’ in Chicago mayor runoff
          * FYI: Bennett Elementary Parent Advisory Council Meeting
          * Judge won't delay sentencing for ex-Illinois Rep. Farnham
          * How did Illinois' congressional delegation vote on last week's DHS measure?
          * Legendary REALTOR® to share 5 secrets at Spring Conference
          * Revenue, revenue, revenue.


          * IEMA Urges People to Prepare for Severe Weather - Tornadoes, floods and severe storms can happen any time of year
          * IDHS helps more than 5,000 individuals with disabilities find jobs - Program offers necessary tools to earn a living wage and become more independent
          * 24th Anniversary Desert Storm Remembrance Ceremony
          * Illinois Department of Human Rights Announces 2015 Spring Training Schedule
          * Snow and Freezing Rain to Impact Travel in Illinois - IDOT Crews Prepared to Battle Winter Weather this Weekend




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