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Fitch downgrades Illinois

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Illinois

Illinois’ credit standing took another hit on Monday as Fitch Ratings downgraded the state’s rating for the first time on Governor Bruce Rauner’s watch, citing the deterioration of state finances during its four-month budget impasse.

The downgrade is the most potent sign yet that the stalemate between Republican Rauner and Democrats who run the legislature - which has taken a bite out of state services - is making Illinois’ already-precarious standing on Wall Street worse.

The one-notch downgrade from A-minus to BBB-plus, affecting $26.8 billion of general obligation bonds, leaves Illinois as the only U.S. state with a rating in the low investment grade triple-B level. Fitch has previously dropped only California to that level in 2003 and 2009, according to Karen Krop, a Fitch analyst.

* The AP’s she-said, she-said…

Catherine Kelly is spokeswoman for Republican Gov. Bruce Rauner. She says Rauner is fighting to “put the state on the path to fiscal health,” but the Democrat-led Legislature is standing in his way.

Rikeesha Phelon is spokeswoman for Democratic Senate President John Cullerton. She says Illinois can’t afford for Rauner “to prioritize his corporate class agenda over basic budget math and governing.”

* Full statement from Speaker Madigan…

“As I’ve been telling Governor Rauner for several months, the number one problem facing Illinois is the state budget. The lack of a resolution on the state budget and today’s downgrade are direct results of the governor’s continued focus on issues other than solving our budget crisis. It’s time we put aside the governor’s list of issues that Democrats and Republicans believe will hurt middle-class families and instead focus on a budget that helps all Illinoisans.

“Fitch Ratings agrees with my view. Nowhere in Fitch’s statement does it suggest that the state needs to follow the governor’s agenda by weakening collective bargaining rights, reducing workers’ wages and hurting the middle class.

“I continue telling the governor we need to take a balanced approach to the state’s financial challenges, one that includes some cuts, like those included in the budget passed by the Legislature in May, and new revenue. Today’s news is another reminder to the governor that it’s time to focus on our budget.”

* From Fitch…

Fitch Ratings has downgraded the rating on $26.8 billion in outstanding Illinois general obligation (GO) bonds to ‘BBB+’ from ‘A-’.

In addition, the ratings on bonds related to the state based on its appropriation have been downgraded to ‘BBB’ from ‘BBB+’ as detailed at the end of this release.

The Rating Outlook has been revised to Stable from Negative.

SECURITY

Direct general obligation, full faith and credit of the state of Illinois

KEY RATING DRIVERS

REDUCED FLEXIBILITY: The downgrade reflects the continued deterioration of the state’s financial flexibility during its extended budget impasse. Illinois’s inability to balance its operations, eliminate accumulated liabilities, and grow reserves during a period of economic expansion leaves it far more vulnerable to the next economic downturn.

ONGOING BUDGET GAPS: After four years of nominally balanced operations that benefitted from temporary tax increases, the fiscal 2015 budget was only balanced through extensive one-time action and a budget has not been enacted for fiscal 2016, which began on July 1. The state continues to spend in most areas at the fiscal 2015 rate, which is expected to lead to a sizeable deficit. As was the case during the most recent recession, this deficit spending is likely to be addressed by deferring state payments and increasing accumulated liabilities.

LONG TERM LIABILITIES HIGH: The state’s debt burden is above average and unfunded pension liabilities are exceptionally high. The state has limited flexibility with regard to pension obligations following the May 2015 Illinois Supreme Court decision that found the 2013 pension reform unconstitutional. Pensions remain an acute pressure on the state’s fiscal operations.

ECONOMY A CREDIT STRENGTH BUT RECOVERY WEAK: The state benefits from a large, diverse economy centered on the Chicago metropolitan area, which is the nation’s third largest and is a nationally important business and transportation center. Economic growth through the current expansion has lagged that of the U.S. as a whole.

RATING SENSITIVITIES

The Stable Outlook incorporates the expectation that the state of Illinois will use one-time solutions to nominally balance the fiscal 2016 budget, but will not achieve more permanent, structural solutions in a time frame that will have a significant impact on fiscal 2016.

Failure to enact measures that lead to ongoing budget balance beyond fiscal 2016 could lead to negative rating action.

Successful implementation of measures to enact a structurally balanced budget and reduce accumulated budget liabilities may lead to positive rating action.

CREDIT PROFILE

The downgrade on the GO bonds of the state of Illinois to ‘BBB+’ from ‘A-’ reflects the deterioration of the state’s financial flexibility as its budget stalemate continues deep into the current fiscal year. With the national economic expansion now extending into a sixth year, Illinois has failed to capitalize on economic growth to restore flexibility utilized during the last recession or to find a solution to its chronic mismatch of revenues and expenditures. Once again, the state has displayed an unwillingness to address numerous fiscal challenges, which are now again increasing in magnitude as a result.

Temporary increases in personal and corporate income tax rates in place for four years, from January 1, 2011 through December 31, 2014, closed or partially closed the budget gap across five fiscal years. However, with their expiration, and the failure to enact a spending plan within expected revenues, the budget gap has ballooned. As a result, the state finds itself with a current operating deficit, structural budget deficit, cash crunch that is now causing a delay in pension system contributions, and accumulation of accounts payable that approaches its highest level at the depth of the recession. As the fiscal year progresses, fewer options remain for closing the gap on a current year basis, pushing the potential solutions into fiscal 2017.

ONE-TIME SOLUTIONS CLOSED 2015 GAP

The current budget stalemate follows a fiscal 2015 when a significant gap was closed primarily through the use of one-time fund sweeps rather than on-going spending or revenue action. The enacted budget for fiscal 2015 relied on approximately $2 billion in one-time revenues to achieve balance, given the anticipated expiration of the temporary taxes half-way through the fiscal year. These included interfund borrowing, use of prior year surplus to prepay fiscal 2015 Medicaid expenses, underfunding of specific budget line-items, and an increase in anticipated accounts payable.

Upon taking office in January 2015, and finding a budget gap that was larger than expected, the current administration proposed, and the legislature enacted, an additional $1.3 billion in fund sweeps and approximately $300 million in budget reductions. However, the lack of a structural solution in fiscal 2015 left the state in a weak fiscal position in developing the fiscal 2016 budget.

FISCAL 2016 SPENDING SUBSTANTIALLY ABOVE EXPECTED REVENUES

The governor and state legislature have not come to agreement on a spending and revenue plan for the current fiscal year, which began July 1, 2015, for which there is a large projected deficit that reflects the full-year impact of the temporary tax expirations.

Despite the absence of an enacted budget, due to continuing and permanent appropriations, court orders and consent decrees, and an enacted appropriation for schools, the state is spending approximately 85% of its budget at the fiscal 2015 enacted rate during the budget impasse. Continuing to spend at this rate, without further appropriations or other changes, is forecast to lead to an annual operating deficit of approximately $2.1 billion, or 6.8% of forecast revenues. This deficit would most likely be addressed by an increase to the accumulated accounts payable balance.

Fitch believes that this deficit figure is likely to be higher, as it incorporates the state withholding $5.9 billion in spending for universities, the group health insurance program, and a variety of other programs, some of which would ultimately have to be covered with state revenue. The state notes that it has already taken approximately $1 billion in actions to reduce spending and reallocate funds to the general fund.

Emphasis added.

posted by Rich Miller
Monday, Oct 19, 15 @ 6:12 pm

Comments

Rauner owns the downgrade.

How do I know? Candidate Rauner told me so…

Let’s use the “Search Key”…

https://capitolfax.com/2014/08/06/traders-pushing-up-state-bond-yields-but-no-state-issuances-on-horizon/

===“Illinois’ credit rating has been downgraded 13 times under Pat Quinn and now, because of his failed leadership, our state’s economy and finances are still broken. Pat Quinn put special interest politics ahead of Illinois workers. We need to change direction before it’s too late.” – Rauner campaign spokesperson Mike Schrimpf […]===

Let’s note that the Rauner Campaign states a “Governor Rauner” would own the change needed. Something to… “consider”

===here are real opportunities to address the state’s structural deficit. To do that, we need to shake up Springfield and bring back Illinois – and voters will get that opportunity in November when they elect Bruce Rauner to be their next governor.===

Rauner, like all governors own, and told everyone Rauner would also own how to fix it.

Rauner has done neither.

Comment by Oswego Willy Monday, Oct 19, 15 @ 6:23 pm
Spells it out pretty plainly. I hope somebody in Springfield listens before it’s too late. We are getting pretty close to the edge of the precipice now.

Comment by up2now Monday, Oct 19, 15 @ 6:25 pm
Electing Bruce has done wonders to bring back Illinois from the brink solving its deficit problems to an exploding deficit while the state’s neediest needlessly suffer as hostages to Rauner’s middle class destroying plutocratic agenda. Far from partisan hyperbole, this is an understatement, if anything. Thanks Bruce!

Comment by PublicServant Monday, Oct 19, 15 @ 6:26 pm
12 more to go until he ties Quinn Madigan and Cullerton from the last admin. Or at least Quinn.

Comment by Anonymous Monday, Oct 19, 15 @ 6:26 pm
Governor’s don’t own. They govern. Legislators legislate.

Three branches of government in Illinois, last I checked. Fitch mentioned the long term liabilities, did they not? Who passed budgets? Rauner hasn’t got one through, but that doesn’t absolve the past failures of Democrats to, well, be Democrats. Just because Rauner has misdiagnosed the problems doesn’t mean the people of Illinois have to do the same. The regressive nature of Illinois’s tax system has been noted by many. Indeed, it is the surest way to fix the problem. Look at that long with bloated middle management and an inefficient and corrupt structure. It is no wonder why we have issues.

Comment by Southern Illinois Hoopdee Monday, Oct 19, 15 @ 6:39 pm
In other words, progressive tax system, stat.

Comment by Southern Illinois Hoopdee Monday, Oct 19, 15 @ 6:40 pm
===Governor’s don’t own===

Gov. Edgar disagrees.

===Rauner hasn’t got one through,===

…that’s why Rauner owns. Please, keep up.

Comment by Oswego Willy Monday, Oct 19, 15 @ 6:43 pm
“Madigan, and the ratings agencies he controls..”

Comment by Arthur Andersen Monday, Oct 19, 15 @ 6:45 pm
Fitch doesn’t get the hostage strategy, either?

Geez, hasn’t anyone read that comprehensive economic and fiscal analysis on the projected ROI?

Anon 6:26, you’re being a little harsh on Rauner.

He did manage to knock down McPier seven notches from AAA to BBB+ in s matter of months just through sheer incompetence. Breathtaking piece of work.

Give him time. Look at how wrecked FY16 is, without the benefit of The Great Recession?

Comment by Wordslinger Monday, Oct 19, 15 @ 6:49 pm
In the JRTC, the Governor’s folks may soon be saying “Madigan, and the toilet paper he controls.”

Comment by Keyrock Monday, Oct 19, 15 @ 6:49 pm
One thing Rauner does not own is the worst credit rating in America. He inherited that from Quinn, Madigan and Cullerton. They own that.

Comment by Anonymous Monday, Oct 19, 15 @ 6:49 pm
How would rating agencies change their outlook if there were an end to collective bargaining at the state and local level? This has yet to be explained to me.

Comment by Casual observer Monday, Oct 19, 15 @ 6:50 pm
No more feeding ” - Anonymous - ” trolls.

I learned my lesson

Comment by Oswego Willy Monday, Oct 19, 15 @ 6:51 pm
So Madigan can’t get his supermajority to vote a budget through with a progressive income tax? Of course he can.

Oswego Willy seems to neglect this fact. So, by his standard, guess who else “owns”.

I want the Speaker to do this, to be honest. In a liberal state, owning liberal values should get you liberal votes and win you elections.

Comment by Southern Illinois Hoopdee Monday, Oct 19, 15 @ 6:57 pm
Anon at 6:49pm, Rauner is Governor today, Fitch downgraded today. hello, McFly…

Comment by Poolguy Monday, Oct 19, 15 @ 7:00 pm
Right on cue, The Owl ;

@RonSandack: Every downgrade, & there have been many, has been on the Speaker’s watch. That’s on him, not Gov. #ReformIllinois

LOL, Rep. Sandack. This is a joke, right?

“Dear ‘The Owl’,

See https://capitolfax.com/2014/08/06/traders-pushing-up-state-bond-yields-but-no-state-issuances-on-horizon/

Candidate Rauner made it clear; Governors own this, not Speakers.

Signed,

Rauner Victimhood”

Comment by Oswego Willy Monday, Oct 19, 15 @ 7:01 pm
Southern, Ken Dunkin, Jack Franks. what supermajority???

Comment by Poolguy Monday, Oct 19, 15 @ 7:01 pm
Look, the Dems aren’t blameless here either.

Honest observers should be looking at both sides and their failures, and standing on principle. Not much of that here.

Comment by Southern Illinois Hoopdee Monday, Oct 19, 15 @ 7:02 pm
Poolguy, Madigan couldn’t pick off Union friendly GOP’ers at my end of the state? Or he couldn’t coerce Dems on the blue dog end of the totem pole?

Poor victim Mike!

Comment by Southern Illinois Hoopdee Monday, Oct 19, 15 @ 7:04 pm
Looks like anonymous got a handle. Congrats.
To the post:
Can someone explain eliminating collective bargaining and how it improves the state, and in extension, bond ratings?

Comment by Casual observer Monday, Oct 19, 15 @ 7:05 pm
Southern, for the moment Rauner owns the GOP votes. $20 million ring any bells. and I don’t place 100% blame on Rauner. you must not read many posts here. plenty of blame to spread around.

Comment by Poolguy Monday, Oct 19, 15 @ 7:06 pm
===Madigan couldn’t pick off Union friendly GOP’ers at my end of the state? Or he couldn’t coerce Dems on the blue dog end of the totem pole?===

Rauner is holding them hostage with $20 million in his campaign account.

Are you pretending to ignore things, or hoestly can’t keep up?

===So Madigan can’t get his supermajority to vote a budget through with a progressive income tax? Of course he can.===

That’s been proven false. Use the “Search Key”.

===In a liberal state, owning liberal values should get you liberal votes and win you elections.===

10-8 Congressional Delegation in the US House, split US Senators.

Not liberal.

What else ya got?

Comment by Oswego Willy Monday, Oct 19, 15 @ 7:07 pm
Pool guy at 7:00

He owns this downgrade, but he inherited America’s worst state credit rating. Those are separate ownership claims, and Quinn, Madigan and Cullerton own the latter.

Comment by Anonymous Monday, Oct 19, 15 @ 7:12 pm
OW, it’s hard for Owls to hit the Search key. The uh, talons get in the way. They just hoot more loudly instead.

Comment by Arthur Andersen Monday, Oct 19, 15 @ 7:12 pm
I don’t remember Rauner saying he will make our situation worse. Yet, it keeps getting worse. Saying this is fine because Quinn was worse is like saying it is OK for the fire department NOT to put out the fire since they didn’t start the fire.

Rauner wasn’t elected to make excuses.

Comment by VanillaMan Monday, Oct 19, 15 @ 7:15 pm
Anon at 7:12. Quinn isn’t governor anymore. Rauner should be doing things now, to improve our credit rating. not allow it to plummet further. blaming others for past mistakes aint helpin’.

Comment by Poolguy Monday, Oct 19, 15 @ 7:15 pm
The ‘Turnaround Agenda’ has turned us around 360 degrees.

Comment by ChicagoVinny Monday, Oct 19, 15 @ 7:16 pm
- Poolguy -, with great respect,

This ” - Anonymous - ” sucked me into trolling, just be aware.

- AA -, I always thought Owls had great memories.

No, that’s Elephants, Republican Elephants, like Gov. Edgar.

Rauner Owls are lucky if they remember the talking points I guess(?)

Comment by Oswego Willy Monday, Oct 19, 15 @ 7:18 pm
Has Ty been making phone calls again?

Comment by Norseman Monday, Oct 19, 15 @ 7:19 pm
Willy you’re correct. i should have stopped after your first post about it lol.

Comment by Poolguy Monday, Oct 19, 15 @ 7:20 pm
I believe you would actually have to amend the Ill. Constitution for a progressive tax, that takes more than a legislative action.

Comment by burbanite Monday, Oct 19, 15 @ 7:23 pm
Sure this is more still bad news on Governor Rauner’s watch, but in the interest of fairness let’s take a moment to reflect on his many accomplishments like…

– MrJM

Comment by @MisterJayEm Monday, Oct 19, 15 @ 7:23 pm
The funds can only be swept so much unless insolvency is the goal. Only one thing…states are not entitled to bankruptcy protection. Municipalities will have no choice if their “every last option” of creating revenue is exhausted. Hence the demand for a property tax freeze. At this point I’d say let him burn it down then deal with it, with not enough votes to pass anything. Of course that relies entirely on the democrats’ solidarity.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 7:26 pm
The AP is now including quotes from President Cullerton’s office at least.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 7:31 pm
Poolguy at 7:15,

We share that. Rauner owns this, and he could be doing more to mitigate the situation. I think that simply laughing and blaming Rauner as some do ignores the debt and credit situation he inherited, which is a key component of where we are at today. If you realize both share in this mess, then I was wrong to label you the same as some others. You might also want to look at some of the old posts here about prior credit downgrades. You will notice that some of the loudest voices on this post were nowhere to be seen during the Quinn credit downgrades. Some commenters here don’t take kindly to anything less than Rauner blaming, and refuse any idea Madigan may also be part of the problem.

Comment by Anonymous Monday, Oct 19, 15 @ 7:32 pm
I see many references to , he owns this….he owns that…. I know that my wife,three kids and myself own $7500 each in unfunded pension obligations. That’s the great thing about politicians of all stripes. At the end of the day, guess who gets stuck with the dinner tab.

Comment by Blue dog dem Monday, Oct 19, 15 @ 7:39 pm
===Catherine Kelly is spokeswoman for Republican Gov. Bruce Rauner. She says Rauner is fighting to “put the state on the path to fiscal health,” but the Democrat-led Legislature is standing in his way.===

“Hi ck-

Governor Rauner, and the hostages he continues to control, for ending both collective bargaining and prevailing wage, is standing in the way to Illinois’ fiscal health. Governor Edgar even says so.

Thanks!
ow”

Comment by Oswego Willy Monday, Oct 19, 15 @ 7:47 pm
Blue dog,
That was before Bruce Almighty. Wait til you see what you guys owe next year.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 7:48 pm
I know, and I have no pension that get a 3% COLA. Heck, I can’t even get a CD that pays 3%.

Comment by Blue dog dem Monday, Oct 19, 15 @ 7:52 pm
The numbers were coming down with the raised income tax. Business is not leaving the state. Business is leaving the country.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 7:59 pm
This is a country of laws. Pay back the money that was borrowed through implementation of sound, steady debt reduction policies. You’ll notice that social security with its cola has essentially been 3% over the last 30+ years, so the pension 3% aai is perfectly in line with that. You don’t have that. I get that. Misery loves company. Quit bellyaching and pay your bills like the rest of us do. Oh, and when you can show me the invoice from the state for $7,500/person, I’ll believe you. Otherwise stop spouting IPI propaganda.

Comment by PublicServant Monday, Oct 19, 15 @ 8:02 pm
All of the emphasized points exist because of BruceAlmighty’s free will. It does not have to be like this.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:06 pm
….sound,steady debt reduction policies. Is that secret code for raise the income tax on the poor and middle class back to 5%. Or do you mean eliminate spending on social services?

Comment by Blue dog dem Monday, Oct 19, 15 @ 8:10 pm
Anonymous @ 6:49
This one happened on his watch. Quinn did not do this.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:16 pm
Blue dog,
The “Poor” don’t have money so they don’t pay taxes. Agencies have been cut consistently over the last decade. The fact is there isn’t much left to cut. Bruce and the Bagpipes are figuring this out just about now. And that’s where we find ourselves, in a blue state with a red state tax code.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:22 pm
so bonds get top priority in paymeny, and the states can do bankruptcy anyway, and the constituion and law bar the state from changeing the bonds or payments…. so what is the risk here that justifies anything other then aaa+? there is no more stable an instrument to hold. even apple is a higher risk then us. notti mention all those tripple a private companies that are not so bound to repayment or the ability to tax for revenue….

Comment by Ghost Monday, Oct 19, 15 @ 8:27 pm
Can we stop the bickering and just agree that every day without a budget in place is bad news for Illinois?

Comment by Vote Quimby! Monday, Oct 19, 15 @ 8:28 pm
Pensions are off limits….I am certainly middle class.still have to work part time to survive, and live in a condo inOld Town valued at $260k.i pay income tax and property tax. Do you think I am the exception or the rule.

Comment by Blue dog dem Monday, Oct 19, 15 @ 8:28 pm
Blue dog,
You are simply along for the ride. 260K for Olde Towne in Springfield? Do you own the whole building? You might be collateral damage.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:42 pm
The middle class is the bargaining chip in this. Speaker Madigan is our last fortress. The union is not helping.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:44 pm
The middle class has, and will always be, the bargaining chip for both political parties.

Comment by Blue dog dem Monday, Oct 19, 15 @ 8:47 pm
Agreed. Probably mistaken on your Old Town. Got it

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:51 pm
I’m done with Rauner. He doesn’t get it, nor does he display the intellectual curiosity necessary to get it. His goal seems to be 4 years of gridlock. Illinois can’t afford that. Time for a redo.

Comment by Biker Monday, Oct 19, 15 @ 8:52 pm
Biker,
Refer to MisterJayEm’s posts here and on previous threads. Remember to perform your due diligence and vote accordingly. Tell all of your friends and family.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 8:59 pm
So…….how has this Turnaround Agenda worked out for us?

Comment by AnonymousOne Monday, Oct 19, 15 @ 9:19 pm
lets be honest about this ———–it all comes down to the $20,000,000 that BVR is holding over the ILGOP!!!!!!

Comment by illini Monday, Oct 19, 15 @ 9:20 pm
Worst. Governor. Ever.

Comment by Anonymous Monday, Oct 19, 15 @ 9:21 pm
Only. Hope. For Illinois.

Unless you like our debt, pension and fiscal situations.

Comment by Anonymous Monday, Oct 19, 15 @ 9:27 pm
Rich, please ask the governor to have his staff adopt nicknames when posting. Thanks.

– MrJM

Comment by @MisterJayEm Monday, Oct 19, 15 @ 9:40 pm
You’d think that Rauner would want the first several months of his first term to be somewhat positive.

There is nothing, nothing positive here.

Recall.

Comment by Macbeth Monday, Oct 19, 15 @ 9:42 pm
Well, now it’s being reported that Noonan’s Hardware in Springfield has cut off the State due to non-payment.

I’ve been saying it would be a postage meter that would bring down the State once and for all. May have to change that to a broken toilet or burnt-out lightbulb.

Comment by Arthur Andersen Monday, Oct 19, 15 @ 9:44 pm
===May have to change that to a broken toilet or burnt-out lightbulb.===

- AA -, I’m rooting for the lightbulb, for obvious reasons. Please, let it be the lightbulb.

Comment by Oswego Willy Monday, Oct 19, 15 @ 9:47 pm
GOOD JOB BRUCE!

Comment by Ben Franklin Monday, Oct 19, 15 @ 9:48 pm
If only there were a suggestion on the website, perhaps…

please take a half second to come up with a nickname

Rich, you need to get on that. Adding text like that might prevent two contradictory messages, two of them in a row from Anonymous.

To the post, ratings agencies warned us, and these types of downgrades cost the state significantly in the long term. Fiscal irresponsibility doesn’t equate to being business friendly. The state needs a long term plan, and they need to stick to it. Holding the budget hostage decreases everyones confidence.

Comment by AC Monday, Oct 19, 15 @ 9:48 pm
Postage meter schmostage meter. Homeless will be dying soon. Somebody has to take the hit for that. Won’t be me, I voted against him twice.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 9:50 pm
Notice Anonymous @ 9:27 did not mention the artificially low income tax rate.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 9:56 pm
No staff here, MrJM.

Comment by Anonymous Monday, Oct 19, 15 @ 10:03 pm
“Look at that long with bloated middle management and an inefficient and corrupt structure.” You must have worked for a political office like SOS. The board I worked for didn’t have that problem.

Comment by Mama Monday, Oct 19, 15 @ 10:33 pm
Great. Now Illinois taxpayers can carry a heavier load for debt which will obviously be needed because expenses still outpace revenue.

A clever CEO might have made it his first priority to avoid this.

Comment by Norm DaPlume Monday, Oct 19, 15 @ 10:40 pm
That’s a different kind of CEO

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 10:53 pm
===May have to change that to a broken toilet or burnt-out lightbulb.===

- AA -, I’m rooting for the lightbulb, for obvious reasons. Please, let it be the lightbulb.

OW & AA, I think it will be the water. No running toilets and no water for morning coffee. Yikes!

Comment by Mama Monday, Oct 19, 15 @ 10:54 pm
Translation: We’ll give you an upgrade the day you float a bunch of pension and debt bonds while guaranteeing them with new income tax revenue. Until you give us some business, we’ll continue to downgrade you.

/s .. maybe

Comment by RNUG Monday, Oct 19, 15 @ 10:56 pm
No Internet service will be the final straw for Rauner’s crew since they won’t be able to send messages to state workers, etc..

Comment by Mama Monday, Oct 19, 15 @ 10:57 pm
Seriously, Rauner was sold as this financial genius who could fix the state’s fiscal problems with his expertise and experience.

All he’s done since being elected is fail to manage what he has, bad mouth the State to investors, and deliberately create crises. In other words, he’s burning the State down in his attempt to save it.

Say what you want about Pat Quinn, but he was actually paying down the pension and bill backlog and more or less managing the day operation of the State. That was a lot better than what Rauner has done to date …

Comment by RNUG Monday, Oct 19, 15 @ 11:00 pm
No Internet service will be the final straw for Rauner’s crew since they won’t be able to comment on Rich’s blog …

There, fixed it.

Comment by RNUG Monday, Oct 19, 15 @ 11:01 pm
Why has the State lagged the nation in economic growth since the last recession with all of the advantages of the nation’s third largest city? It seems that we were doing something wrong. It also seems that the Democrats are unwilling to change anything to attract business.

Comment by Lucky Pierre Monday, Oct 19, 15 @ 11:21 pm
“All he’s done since being elected is fail to manage what he has, bad mouth the State to investors, and deliberately create crises. In other words, he’s burning the State down in his attempt to save it.”

You left out the part where he belittles state employees.

Comment by PENSIONS ARE OFF LIMITS Monday, Oct 19, 15 @ 11:32 pm
The lack of Internet service would decommission a whole lot of Madigan’s crew as well. State productivity would probably increase though.

Comment by Anonymous Monday, Oct 19, 15 @ 11:58 pm
Rauner is making the status quo ante look like the good old days. Debt? Up under Rauner. Pensions? Tier 2 has been done. Pay back what was borrowed.
The current fiscal situation? Grow a spine. Own the cuts and revenue increases needed to balance the budget.

Oh, and quit trying to blackmail the state into accepting your plutocratic ideology before you take your boot off the throats of the poor and marginalized in Illinois.

Comment by PublicServant Tuesday, Oct 20, 15 @ 5:32 am
==It also seems that the Democrats are unwilling to change anything to attract business.==

“Seems”. They already did one round of worker’s comp reform, and Madigan put a causation standard on the table.

Meanwhile, Rauner’s hostage-taking is hurting our biggest asset in attracting business.

Comment by Anonymous Tuesday, Oct 20, 15 @ 7:52 am
Fitch is looking at our future.
That includes the new governor.
They downgraded us.
That reflects upon the new governor.

To all those who say that we need to look at how they graded Quinn’s terms, well - they already had.

So, thinking it couldn’t get worse under Rauner, has just been proved wrong.

It got worse.

Comment by VanillaMan Tuesday, Oct 20, 15 @ 8:03 am
I have been saying for months, that you eventually need a budget but you never have to have a “turn around agenda”.

Comment by Facts are Stubborn Things Tuesday, Oct 20, 15 @ 8:17 am
I think this is part of his campaign promise to bring back Illinois

Comment by Anonymous Tuesday, Oct 20, 15 @ 8:19 am
There is nothing positive to be said so far about this governor’s work. Our state is in the worst shape it has ever been in. He appears to feel disgust and contempt for everyone. If he is unaware of all of this then there is a personal problem. Seriously. Perhaps unfit to rule?

Comment by AnonymousOne Tuesday, Oct 20, 15 @ 8:30 am
It got worse…

How much does that change things when you are already the worst? And have been the worst rated for the previous two years?

Comment by Anonymous Tuesday, Oct 20, 15 @ 8:33 am