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* From a recent press release…
Illinois State Treasurer Michael Frerichs will urge Governor Bruce Rauner [today] to focus on budget negotiations to avoid junk bond status. During Rauner’s tenure, Illinois has incurred six credit downgrades due to two years without a state budget.
Frerichs will outline the financial consequences and address the negative impact Illinois faces if credit agencies move forward with public warnings to downgrade Illinois to junk bond status.
* Treasurer Frerichs has been mostly quiet about Gov. Rauner and the impasse. “I prefer to play my part and do my job rather than to complain about others,” he told reporters today, then explained why he was speaking out: “The future of our state is too important.”
Gov. Rauner “paid big money” to win his election, “but he refuses to do his job,” Frerichs said. “The buck always stops somewhere else.”
“It is embarrassing and downright shameful that Illinois is in this deep of a hole,” he said, pointing to the six state credit downgrades and the recent warning from Moody’s that Illinois “is on a path to junk bond status.”
“Gov. Rauner needs to stop campaigning and start governing,” he said. “You can’t negotiate a budget when you’re out on the campaign trail. You can’t negotiate a budget through press conferences and television commercials,” the treasurer said at his press conference. “You have to be present here, present in Springfield calling the leaders together to work out his deal.”
“I don’t listen when someone says something is a priority, I look at their budget, I look at their actions. And then you can see clearly what is not a priority with this administration,” Frerichs said of the lack of funding for higher education and social services. He later said he was in favor of the House’s “lifeline” budget for those two areas as budget negotiations proceeded in the Senate.
Frerichs also said the lack of a budget would impact upcoming bond sales. “The added interest we’re paying will be ripped out of the wallets of Illinois citizens,” he said, claiming that another credit downgrade could “terminate interest rate swap contracts,” which would trigger some big payouts.
“This is not the Illinois we want it to be,” Frerichs said. “We need a budget and I call upon the governor to do his job now.”
* Frerichs also criticized Rauner for focusing solely on K-12 funding, noting that Rauner constantly crows about increasing education funding while slashing higher education dollars. “Education in this state does not end in the 12th grade,” he said.
I’ll post the Rauner administration’s response if I get one. Frerichs’ press release is here.
*** UPDATE *** From Deputy Governor Leslie Munger…
The fact is that the Treasurer spent years in Springfield voting for the very tax hikes and borrowing that landed us in this place. Instead of playing politics, the Treasurer should encourage members of his party to work with the Governor on real change to get our state back on track to long-term economic growth and balanced budgets.
posted by Rich Miller
Monday, May 8, 17 @ 10:58 am
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Oh I’m sure you’ll get one, Rich…
Comment by PublicServant Monday, May 8, 17 @ 11:03 am
“…claiming that another credit downgrade could “terminate interest rate swap contracts,” which would trigger some big payouts.”
That seems worth repeating.
Maybe we need to hear more about who will benefit from the additional Rauner Downgrades.
(Which will most likely come, due to the unachievable perfect deal for our odd “leader” keeps trying to sell.)
Comment by Anonymous Monday, May 8, 17 @ 11:06 am
Well put. I’d like to see the evening newsak report on stories like this.
Rauner keeps claiming to be pro-taxpayer when he’s driving up the cost of borrowing, and he’s been getting away with it.
Comment by Taxation = Civilization Monday, May 8, 17 @ 11:07 am
Haven’t understood why he’s been so quiet on this. Glad to have his voice out there, but why now?
Comment by Chicago Cynic Monday, May 8, 17 @ 11:07 am
anonymous 11:06, c’est moi. fwiw
Comment by cdog Monday, May 8, 17 @ 11:07 am
He is just trying to get his name ID back up.
Comment by Rocky Rosi Monday, May 8, 17 @ 11:30 am
He must be jealous of all the attn. Mendoza is getting.
Comment by jim Monday, May 8, 17 @ 11:46 am
This state allows a 48 year old to retire at U of I with a 80% pension. This Retiree with a 30 year life expectancy left. Illinois uses a 7 to 8% return on money which is actually somewhere between 2.5 to 3.7% return on money paid in. With health benefits these benefits show a deficeit of around 5 million for one employee. you do the math were broke for a reason. Fix this you’ll start to fix the problem.
Comment by BS Gifford, IL Bryan Schluter Monday, May 8, 17 @ 11:50 am
To BS Gifford: 80% requires 36+ years of employment (2.2% per year on Tier One.) Someone really starts working at the U of I at age 12? Get your numbers right.
Comment by The Old Professor Monday, May 8, 17 @ 12:02 pm
It begs the question; will the turn around agenda save more then the state will lose from all the credit downgrades and interest payments on unpaid bills. not to mention lost opportunity costs from business going under and not payingg bills so loss of money in economy.
if all those things are greater thne the savings then it makes no fiscal sense to incurrr greater loss to try and get minor gains.
Comment by Ghost Monday, May 8, 17 @ 12:04 pm
Those talking points were right out of the DPI. What’s he been doing for two years of no budget? How many out of balanced budgets did he vote for while in the Senate?
Comment by Anonymous Monday, May 8, 17 @ 12:07 pm
People complain that DPI hasn’t fully engaged the way that Team Rauner has, but Munger’s statement shows they’re just replaying the ‘14 campaign.
Comment by Anonymous Monday, May 8, 17 @ 12:15 pm
===The fact is that the Treasurer spent years in Springfield voting for the very tax hikes and borrowing that landed us in this place. Instead of playing politics, the Treasurer should encourage members of his party to work with the Governor on real change to get our state back on track to long-term economic growth and balanced budgets.===
Leslie Munger sounds like - Lucky Pierre -, LOL
Let’s de-construct the response given by the “Wingman”…
===The fact is that the Treasurer spent years in Springfield voting for the very tax hikes and borrowing that landed us in this place.===
The point Frerichs made was having no budget and negotiating for non-budgetary items that have zero budgetary baring on the state finacials but by holding hostage a budget a choice Rauner has made to purposely hurt Illinois
A “Wingman” only refers to a talking point that has no refutable use to Treasurer Frerichs. Speaks volumes about that “Wingman”
===Instead of playing politics===
Rauner’s millions spent on ads during session? Is that what “Wingman” is talking about?
===…the Treasurer should encourage members of his party to work with the Governor on real change…===
Rauner can get 60 and 30 anytime he wants. Instead? Rauner chooses to destroy social services and eliminate state universities by refusing to fund them, or steady until Rauner destroys labor or gets a sham budget Rauner mocks continually.
===…to get our state back on track to long-term economic growth and balanced budgets.===
That 1.4% or $500+ million in Rauner Turnaround Agenda metrics.
That “Wingman”, utterly clueless on math, lol
Comment by Oswego Willy Monday, May 8, 17 @ 12:16 pm
Finally a Republican that is not afraid to speak about the big boss.
Comment by Valvino Monday, May 8, 17 @ 12:22 pm
Wingman should return her paycheck, not one original thought… what a waste of funds.
Comment by say what Monday, May 8, 17 @ 12:26 pm
Lame, Leslie. Lame.
Comment by Winnin' Monday, May 8, 17 @ 12:26 pm
A mynah bird that mimics its owner, the owner thinks its intelligent
Comment by Rabid Monday, May 8, 17 @ 12:37 pm
It was not “voting for the very tax hikes and borrowing” which “landed us in this place.” Urging the loss of $4.6B per year in tax revenue from partially rolling back the Quinn tax hikes while appointing and managing “superstars” who failed to identify and eliminate any significant “fraud, mismanagement and waste” landed us in this place, i.e. approximately $9B added to the bill backlog.
Comment by 37B Monday, May 8, 17 @ 12:40 pm
Leslie and her staff obviously didn’t listen to the press conference. I think Frerichs did urge everyone to work together. Incompetent press release.
Comment by 360 Degree TurnAround Monday, May 8, 17 @ 12:42 pm
Thankfully, Munger wasn’t playing politics in her response, I guess that accusation is reserved for those who criticise the governor. /S
Comment by AC Monday, May 8, 17 @ 12:47 pm
$135k/yr well spent Governor well spent.
Comment by DuPage Bard Monday, May 8, 17 @ 1:12 pm
Can someone explain why we need a Deputy Governor?
Comment by Valvino Monday, May 8, 17 @ 1:13 pm
We encourage the treasurer to ask his democratic friends to agree with us so we can make Illinois more like Wisconsin. Randy and Mortimer Duke will be mad at us if we compromises
Oops I meant Charles and David Koch
Comment by Term limits again Monday, May 8, 17 @ 1:39 pm
Leslie Munger the highly paid wingman strikes again. I’m glad she doesn’t get political/s
Comment by Flynn's mom Monday, May 8, 17 @ 3:20 pm
I wish she would go back to hawking beauty supplies.
Comment by Saluki Monday, May 8, 17 @ 3:21 pm
==voting for the very tax hikes…that landed us in this place==
Math, Ms. Munger, math. The tax hikes REDUCED the problem because they ADDED much needed MONEY to the budget.
Comment by Pot calling kettle Monday, May 8, 17 @ 3:22 pm
===The tax hikes REDUCED the problem because they ADDED much needed MONEY to the budget===
Until it partially expired. So, she’s not wrong.
Comment by Rich Miller Monday, May 8, 17 @ 3:26 pm
What’s seven eights wingman?
Comment by Just Sayin ... Monday, May 8, 17 @ 7:24 pm
Frerichs is just another Madigan mouthpiece, like Mendoza
Comment by Mockingjay Friday, May 12, 17 @ 7:07 am