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Moody’s downgrades five universities’ credit to junk status

Saturday, Jun 10, 2017 - Posted by Rich Miller

[Comments are now open on this post.]

* WSJ

Ratings firm Moody’s Corp. on Friday downgraded the credit ratings of seven public universities in Illinois over concerns about the state’s nearly two-year budget impasse.

The universities were downgraded because of their reliance on the state of Illinois for payments and appropriations, according to Moody’s. Of the seven universities, five of them—Southern Illinois University, Northern Illinois University, Governors State University, Northeastern Illinois University and Eastern Illinois University—now have junk status. […]

In one example, Eastern Illinois University only received $16 million from the state in the 2016 fiscal year, compared with $52 million in the 2015 fiscal year.

Moody’s downgrade marks the end of a 90-day credit review rating for these seven universities.

It also follows a move by both S&P Global and Moody’s to downgrade state of Illinois bond ratings earlier this month. Ratings firms have warned that the state can be downgrade to junk status next month if the partisan gridlock isn’t solved, which would make Illinois the first state with such a rating. [Emphasis added.]

* Moody’s

Factors that Could Lead to an Upgrade:

    Resumption of steady and consistent state support contributing to improved operating performance
    Significant and sustained growth in liquidity

Factors that Could Lead to a Downgrade:

    Continuing decline in directly paid state operating support or “on-behalf” payments for pension and other post-retirement health benefits
    Inability to adjust further to changes in state funding
    Material declines in liquidity
    Continued enrollment and net tuition-revenue declines

[Emphasis added.]

  8 Comments      


Republican Party tries to connect the property tax assessment dots

Friday, Jun 9, 2017 - Posted by Rich Miller

* ILGOP…

Days ago, the Chicago Tribune published a bombshell three-part report exposing how bosses of the Chicago political machine - Mike Madigan, John Cullerton, Joe Berrios and others involved in the property tax appeals business – have manufactured a property tax system that targets the poor and puts millions in their own pockets.

Today, the Illinois Republican Party is releasing a social media infographic highlighting how Chicago Machine insiders game the system to benefit themselves at the expense of low- and middle-income homeowners in Cook County.

Links to ILGOP social media posts are HERE and HERE.

The insiders:

Mike Madigan - longtime House Speaker and Chairman of the Democratic Party of Illinois, Madigan controls all legislation in the Illinois House, particularly legislation affecting Illinois’ property tax system. Madigan also moonlights as one of Chicago’s top property tax appeals attorney and makes “over a million dollars” from Cook County’s rigged property tax system “in a good year.”

John Cullerton - one of Madigan’s former top lieutenants in the Illinois House and now President of the Illinois Senate, Cullerton, like Madigan, also controls legislation in the Senate, including bills concerning property taxes, and moonlights as a property tax appeals attorney.

Joe Berrios - Cook County Assessor, Chairman of the Cook County Democratic Party and longtime Madigan ally, Berrios often mixes official business with politics, taking in over $2.5 million in campaign contributions since 2009 from property tax appeals attorneys whose appeals are at his mercy. Contributions from property tax appeals attorney amount to over half of Berrios’ total campaign cash.

Chris Kennedy - millionaire, inheritor of the Kennedy family fortune and now Democrat candidate for governor, Kennedy has hired Madigan & Getzendanner, Mike Madigan’s law firm, to appeal property taxes for the previously-Kennedy family-owned Chicago Merchandise Mart. Like Pritzker, Kennedy recently received a massive property tax break from an appeal on a downtown Chicago development spearheaded by Kennedy and his business associates.

J.B. Pritzker - billionaire, inheritor of the Hyatt family fortune and Mike Madigan’s preferred candidate for governor, Pritzker has been bankrolling and profiting from the Chicago Machine for decades. The Chicago Sun-Times recently revealed that Joe Berrios awarded J.B. Pritzker a $230,000 break on his property taxes for a multi-million dollar mansion Pritzker claimed was “uninhabitable.” The attorneys who oversaw Pritzker’s appeal have contributed over $100,000 to Berrios’ political organizations.

* The infographic…


…Adding… Cullerton’s spokesman says his boss hasn’t done any property tax appeals work in “many years.”

…Adding More…
Heh…


…Adding Still More… Like Cullerton, House Republican Leader Jim Durkin works at a law firm that does property tax work. Click here.

  42 Comments      


Pritzker dumps another $7 million into his campaign

Friday, Jun 9, 2017 - Posted by Rich Miller

[Bumped up to Friday for visibility.]

* The A-1 is here. That’s $14 million since April, if you’re keeping track.

Long way to go to match Gov. Rauner’s $70 million.

* From the ILGOP…

“Billionaire J.B. Pritzker felt the need to scam city schoolchildren and homeowners out of $230,000, but apparently has $14 million to give to his own campaign. He’s just another Chicago insider who works the system to benefit himself at our expense.” - Illinois Republican Party Spokesman Steven Yaffe

Moments ago, billionaire Democrat candidate for governor J.B. Pritzker deposited another $7 million into his campaign coffers, bringing his total personal contributions to his campaign to $14 million.

Pritzker’s $14 million contribution to his campaign comes after the Chicago Sun-Times revealed his property tax scam that shortchanged Chicago schoolchildren and homeowners by over $230,000.

Why would Pritzker spend millions of his inherited fortune on his campaign?

Because he’s just another Chicago insider who works the system to benefit himself at our expense.

  30 Comments      


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