Capitol - Your Illinois News Radar » Moody’s analyst: Backlog threatens “financial foundations of the state”
SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
To subscribe to Capitol Fax, click here.
Moody’s analyst: Backlog threatens “financial foundations of the state”

Wednesday, May 31, 2017

* The state’s bill backlog as of yesterday was $14.5 billion.


That backlog is “headed in the direction of being a factor that just by itself really threatens the sort of financial foundations of the state,” Ted Hampton, Moody’s lead analyst on Illinois, said in an interview, citing litigation from those demanding payment. “There is kind of an uncertain but very real legal and political limit to the state’s ability to keep deferring payments.”

* More

“We are probably approaching that point of impaired ability to function at basic level,” said John Humphrey, the Chicago-based head of credit research for Gurtin Municipal Bond Management, which oversees about $10.1 billion of state and local debt and has steered clear of Illinois. “We’ve already probably passed that point. We haven’t seen this in a modern state before.” […]

Bond-rating companies have warned of further ratings cuts, signaling that Illinois could be the first state since at least 1970 to lose investment-grade status. […]

Despite the gridlock, Illinois hasn’t missed any bond payments and state law requires it to continue making monthly deposits to its debt-service funds. Still, the fighting has impeded any progress on bolstering a state retirement system that has more than $129 billion of unfunded liabilities — a source of stress that has helped drive its rating down.

- Posted by Rich Miller        

  1. - Norseman - Wednesday, May 31, 17 @ 9:16 am:

    Time to re-run that commercial of Rauner criticizing the governor for his ineptness leading to numerous credit downgrades!

  2. - Anonymous - Wednesday, May 31, 17 @ 9:18 am:

    “We’ll have to destroy ya to save ya”

  3. - retired guy - Wednesday, May 31, 17 @ 9:19 am:

    OOps, that comment was from retired guy ~ We’ll have to destroy ya to save ya”

  4. - Moe Berg - Wednesday, May 31, 17 @ 9:20 am:

    Hard to believe Rauner can look Illinoisans in the eye and say it’s all been worth being the first governor in 198 years not to manage enacting a budget. Surely to god the sane members of the business community don’t think it. And, where will they stand come next year?

  5. - wordslinger - Wednesday, May 31, 17 @ 9:20 am:


    Shake it up!

    Hang in there!

    Is that better now?

  6. - AnonymousOne - Wednesday, May 31, 17 @ 9:22 am:

    Isn’t this what every aspiring governor would aim to accomplish? Destruction of the state he/she runs? Quite the fait accompli! He’ll go down in history as a great one! /s

  7. - Texas Red - Wednesday, May 31, 17 @ 9:24 am:

    MJM …it is better to deal with the Devil you know than the one you don’t.

  8. - TinyDancer(FKASue) - Wednesday, May 31, 17 @ 9:32 am:

    “Mission accomplished:”
    B. Rauner June 2017
    (Illinois’ very own economic hit man.)

  9. - Hit or Miss - Wednesday, May 31, 17 @ 9:35 am:

    ===The comptroller has estimated that the state will owe at least $800 million in interest and fees on overdue bills by the end of June.===

    This seems like a high cost for the tax payers of Illinois for the current situation. I wonder how much more a bond rating downgrade into ‘junk’ territory will cost the taxpayers?

  10. - Oswego Willy - Wednesday, May 31, 17 @ 10:01 am:

    ===That backlog is “headed in the direction of being a factor that just by itself really threatens the sort of financial foundations of the state,”===

    Bruce and Diana Rauner are getting the best return for that campaign money.

    The legacy of the RaunerS will be the deception they made, in money and ads they both participated, and the glory of their well-executed plan to destroy a state, it’s social services, and the state universities… all in TWO years.

    Thank you Diana and Bruce, you made quick work of your mission.

  11. - illini - Wednesday, May 31, 17 @ 10:06 am:

    One option that had been available to our public colleges and universities was to sell bonds to balance the greatly reduced support from the state. This has helped some survive to this point.

    Yet, this only adds to the ultimate cost of attendance which makes out of state colleges more attractive.

    Investors who have these bonds are doing well, and expecting that they will eventually be paid.

    I have been willing to make an investment in bonds offered by UIUC but EDJONES does not even offer these to their clients because of their ratings.

  12. - VanillaMan - Wednesday, May 31, 17 @ 10:08 am:

    We didn’t have a governor presenting new sources of state revenue and budget cuts to offset the decrease in revenue that occurred after the expiration of the 5% income tax.

    A real governor would have had a plan when he cut the state revenue. We didn’t have a governor, instead we had Bruce Rauner.

    Rauner used this disaster to push for extreme reforms he didn’t campaign on, or received a mandate to do. His “Turnaround Agenda” was not budget related and hence failed to address the budget crisis foremost in Illinois.

    Rauner failed to provide immediate budgetary remedies to address the growing budgetary crisis. Without leading, Illinois went leaderless after 2015.

    Rauner now wants us to reelect him to finish a job, he never started, and worse, allowed to explode during his administration, hoping it would create political opportunities for his unwanted agenda.

    Regardless of intent, Rauner failed to govern as promised, failed to work within government to sell his policies, failed to compromise, and failed to lead. Every governor needs temporary agreements and fixes to lead a government towards their policy goals. Sadly, Rauner denounced this proven technique as “duct tape”, completely failing his supporters.

  13. - Deadbeat Conservative - Wednesday, May 31, 17 @ 11:08 am:

    The Dems continue to lay low - afraid of voters and corporate media that don’t know the difference between paying your past due bills & spending.

  14. - 37B - Wednesday, May 31, 17 @ 1:01 pm:

    Bruce Rauner’s Illinois: Past the point of “impaired ability to function at basic level.”

    And all in two years.

    “We haven’t seen this in a modern state before” says Moody’s.

    Moody’s Mr. Rauner.

  15. - blue dog dem - Wednesday, May 31, 17 @ 1:29 pm:

    Duh!? $120 billion in pension obligations is ok, but $15 billion in IOU’s is death?

  16. - wordslinger - Wednesday, May 31, 17 @ 1:34 pm:

    –$120 billion in pension obligations is ok, but $15 billion in IOU’s is death?–

    You could take a course at your community college and they could explain the difference between long-term liabilities and operating deficits.

    Kind of like the difference between your mortgage balance and being short on the grocery and utility bills.

  17. - Daniel Plainview - Wednesday, May 31, 17 @ 1:36 pm:

    - You could take a course at your community college -

    Probably not for long.

  18. - blue dog dem - Wednesday, May 31, 17 @ 2:30 pm:

    …kinda like your mortgage balance and being short on the grocery and utility bills.

    My engineering degree from the U of I-C really has a hard time distinguishing a difference. Your talent at explaining things would be greatly appreciated. Thanks.

  19. - Anonymous - Wednesday, May 31, 17 @ 2:47 pm:

    Laughing—–pension obligations that has caused stress

    Well…….yeeeesssss. Especially when everyone wants to play the lawsuit game by introducing bills that take years to get a ruling in court vs taking action to pay down that debt and attack the problem.
    Paying our debt obligations to those who have served us gradually but proactively would go a long way toward solving a myriad of problems.

Sorry, comments for this post are now closed.

* Reader comments closed until April 2
* Quick hits before vacation
* Heads up!
* First-day whiplash in mayor's race
* Pritzker hit on taxes
* Even Trib tires of "Because... Madigan!"
* What goes around eventually comes around
* Londrigan turns to face Davis
* *** UPDATED x1 - DGA follows suit *** Pritzker uses Ives in new video
* Illinois House Bill HB 4900 is Unconstitutional
* Rauner on the hustings
* Quote of the week
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* The natives are getting restless
* Yesterday's stories

Visit our advertisers...








* Governor Rauner kicks off general election camp.....
* At campaign stop in West Frankfort, Gov. Rauner.....
* Rauner signature frees up schools to get money .....
* The 'ignorant' columnist overhears a conversation..
* Weaver proposes pension change..
* Letter: Raise age for statewide tobacco sales t.....
* Illinois governor compares foes' tactics to 'ma.....
* Rauner Signs School Funding Fix - Peoria Public.....

* Former UI aviation institute now a Parkland College program
* Report: Illinois high school referee shortage getting worse
* Storm forecast to bring up to 9 inches of snow to Illinois
* Man dies, officers wounded in shootout in suburban Chicago
* Report: Number of referees in Illinois continues to drop
* Workers find, return wallet 20 years after nurse lost it
* Chicago-area woman charged with murder in mother's death
* Police looking for 3 vehicles after wrestler killed in crash
* Chicago mayor, congressman part of Puerto Rico delegation
* Mattoon teen admits to social media threat of gun violence

* $18 million gift to benefit LLCC agriculture program
* Illinois Supreme Court won't take up Rauner's appeal of step pay case
* Former campaign worker sues Madigan fund in sexual harassment case
* Rauner says he has yet to speak to Ives after primary win
* LLCC gets $18 million donation to benefit agriculture program
* Fact check: Rauner cites own remarks as proof of outside support for Election Night claim
* Under the Dome Podcast: It's Pritzker vs. Rauner
* Marijuana referendum could strengthen movement to legalize in Illinois, but naysayers say ballot question unfair
* Illinois Democrats giddy about odds of retaking governor's office
* New exhibit at Lincoln museum honors four U.S. presidents with ties to Illinois

* Corrections
* In withdrawal: The babies of Illinois' opioid epidemic
* Higher Chicago heating bills fuel bonus bump for Milwaukee utility execs
* Higher Chicago heating bills fuel bonus bump for Milwaukee execs
* Is Mariano's parent merging with Target?

* Man wounded in Little Village drive-by shooting
* Big-man Lauri Markkanen makes his return, but Bulls still lose fourth straight
* How the Cubs plan to take a 31-year-old, four-time All-Star to the next level
* Army Corps faces questions about vetting border wall company
* Hijacked vehicle crashes in West Garfield Park, 3 juveniles arrested
* Controversial priest: Homophobia in church ‘always going to be there’
* Authorities: 1 killed, 3 seriously injured in Little Village crash
* Orange Dinosaur is done: Former Bears TE Martellus Bennett to retire
* A look at what the crystal ball has to say about the future of Chicago baseball
* Film shows black women as hidden figures in pro wrestling

* Stop feeling sorry for the Austin bomber
* Artifacts from 1893 World’s Fair found beneath Obama center site, but report signals construction can proceed
* More people are seeking out mental health care, but psychiatrists are in short supply: 'It's getting worse'
* Facebook was never free: What Mark Zuckerberg's shocking admissions reveal
* New faces on the horizon for White Sox
* Trump issues order to ban most transgender troops from military
* Porter Moser brings Loyola to brink of 'basketball immortality'
* Kansas brings sanity back to March in 80-76 win over Clemson
* 1 killed, 3 critically injured in West Side crash
* Bucks' bench big night powers 118-105 victory over Bulls

» March 23, 2018: Gentlemen, Start Your Engines
» Final School Funding Bill Signed Into Law
» State Week: Lessons Of The 2018 Primary
» Mural Highlights Acclaimed Artist Keith Haring's Effect On Aspiring Artists
» Future of Artificial Intelligence; Mindfulness In Schools; Teaching The Trail Of Tears
» WBEZ’s Chicago and Illinois News Roundup: March 23, 2018
» The Week in Review: General Election Already Underway
» Web Extra, The Week in Review: Arthur Jones’ Primary Win
» #643 SXSW 2018
» March 22, 2018 - Full Show

* Guest View: A renewed focus on railroad crossing safety
* Hugh Hewitt: John Bolton is a great addition to the White House
* Thumbs down to apathy on Election Day
* $18 million gift to benefit LLCC agriculture program
* Counterpoint: Kudlow's fossilized beliefs could lead Trump further astray
* Point: Kudlow's skills will keep US economy rolling in fast lane
* Eugene Robinson: We should not reward the authors of torture
* Illinois Supreme Court won't take up Rauner's appeal of step pay case
* Former campaign worker sues Madigan fund in sexual harassment case
* Rauner says he has yet to speak to Ives after primary win

* Synthetic pot may be causing severe bleeding, health officials say
* Agreement reached in lawsuit filed by Saline County Clerk
* BASEBALL: Oh, no ... Dragons lose to Richwoods
* GIRLS SOCCER: Pekin roughs up Rock Island
* HS Baseball: Monticello vs. Westville
* Forrest man killed in crash near Saunemin
* Check out these brunch spots this Easter Sunday
* Agriculture industry worries over effects of tariffs
* At campaign stop in West Frankfort, Gov. Rauner calls Pritzker ‘corrupt’ and a ‘tax cheat’
* One of the shooting victims from Easter Sunday 2016 shooting testifies in Tim Beaty murder trial

* Former St. Charles man gets 17 years for beating, shooting at wife
* Baseball: Thomson, Vernon Hills outscore Zion-Benton
* Girls soccer: Stevenson powers up, shuts down Hersey
* Two facing weapons charges in Aurora
* Trump order would ban most transgender troops from serving

* Democrats direct ire at tax reform bill Ro...
* 'Chuy' García vows to keep fighting Chicag...
* Luis Gutierrez: Immigrants Who Look Like '...
* In Illinois Primary, Democrats Take Aim at...
* 7 Democrats talk strategy for winning Tues...
* ELECTIONS 14th Congressional Dist. candida...
* Five races to watch in the Illinois primary
* 'Cannabis candidate' accused of abusing wo...
* White House's Hope Hicks declines to answe...
* Rep. Quigley: Democratic Memo Response in ...

* Trump: I'll never sign a bill like this again...
* The real reasons Congress can't act on gun......
* Border wall, DACA could stall federal fund......
* Federal funding measure approved to avoid ......
* Portman, Durbin introduce resolution marki......

* Deportation imminent for Miguel Perez Jr.,......
* Former Obama Spokesman Denounces Deportati......
* Congressional Democrats plan to join 'Marc......
* Dem senator introduces bill to publicize T......
* Deportation proceedings begin for Afghan W......

* Progressive?
* Hitting Left with the Klonsky Brothers. Episode 59. Summing up the Illinois primary elections.
* Universities Deploy Chatbots to Aid Students in the Admissions Process and Beyond
* 10 Resources for finding edtech jobs
* Global Boom in Private Enrollments
* Professor on online activities: They get ‘students talking more and me talking less’
* Race and Gender Bias in Online Courses
* Education needs innovation to keep it fresh. Can social learning environments provide the boost?
* Let’s make Pritzker and Rauner pay more—a lot more—in state income taxes
* Hundreds of Chicago students to protest gun violence outside Stroger Hospital this weekend

* February Flooding Information
* IEMA Urges People to Prepare for Severe Weather
* Governor issues state disaster proclamation for flooding in Iroquois, Kankakee, Vermilion Counties
* Winter Storm Warnings for Areas Along and North of I-80
* IEMA Encourages People to Prepare for Earthquakes

* Shareholders vote current Qualcomm board back in, but with skepticism
* Folding iPhone progress, Galaxy S9 responsiveness issues & more – Pocketnow Daily
* KGI: Next week’s iPad refresh will work with Apple Pencil
* HTC U12+ will be the company’s only flagship of 2018
* Formula 1: How sensor technology is changing the race
* Gun deaths could become easier to study thanks to the new spending bill
* Elon Musk deletes Facebook pages he didn’t even know he had

* Renteria to use 'abundance of caution' for Abreu
* Giolito, Moncada are White Sox to watch in '18
* Giolito, Moncada are White Sox to watch in '18
* White Sox have roster battles in bullpen
* Spring Stats Glance
* Skole among 3 reassigned to Minors camp
* White Sox Top 10 Prospects for 2018: Part Two

Main Menu
Pundit rankings
Subscriber Content
Blagojevich Trial
Updated Posts

March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
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


RSS Feed 2.0
Comments RSS 2.0

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