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Illinois Republican state legislators continue to push for policy changes to address what they see as a poor business climate.

The credit rating assigned to Illinois by Fitch Ratings, A- in November 2023, is far below the ratings given to most of the 50 states. As of early 2024, most states have AA or AAA credit ratings, and can borrow money at much lower expense to taxpayers than can Illinois.

In a news conference Tuesday at the state capitol in Springfield, state Rep. Dan Ugaste, R-Geneva, said Democrats are promoting a narrative that “all is well.” He wants a property tax relief plan. […]

Ugaste said he’s glad Illinois has had the credit increases.

“I am glad those budgets brought those about but if you look at why Illinois’ economy is doing so much better and our revenue has increased so much, it is in large part due to inflation,” Ugaste said. “Our costs stayed what they were but inflation ticked everything up. So while we benefited from it, our people aren’t benefiting because their wages haven’t kept up.”

wut

posted by Rich Miller
Wednesday, Mar 13, 24 @ 10:58 am

Comments

*visible confusion*

Comment by DuPage Dad Wednesday, Mar 13, 24 @ 11:00 am
I look forward to Dan Ugaste standing on a work table with his “Union Now” sign held aloft.

Comment by Michelle Flaherty Wednesday, Mar 13, 24 @ 11:01 am
This is the kind of thing the dumbest of my high school friends say when they try to discuss economics.

Comment by Excitable Boy Wednesday, Mar 13, 24 @ 11:02 am
Does this dim bulb not understand that in order for taxes collected to have increased wages had to increase?

Comment by Manchester Wednesday, Mar 13, 24 @ 11:05 am
Gotta be raining somewhere, and not in a “good for farmers” way, either.

Comment by Socially DIstant watcher Wednesday, Mar 13, 24 @ 11:08 am
One doesn’t simply become a Republican legislator without the ability to completely divorce oneself from reality.

He’s pro business because he says he is. Democrats are against business because he says they are.

Comment by Candy Dogood Wednesday, Mar 13, 24 @ 11:09 am
This is proof why some people support term limits. It permits elected officials, when asked about the sins & transgressions of their party in the past when they’re complaining about the other party, to honestly say “What? Never heard of it.” Where would Illinois’ credit rating be without the Rauner-caused trainwreck? Hmm …

Comment by Anyone Remember Wednesday, Mar 13, 24 @ 11:09 am
“can borrow money at much lower expense to taxpayers”

When the carnival barkers start calling for establishing a state bank, then I’ll believe they actually care about any of this.

A state bank would be able to borrow at the rate of the Fed discount window and lend directly to local governments at lower rates than the municipal bond market.

Given the quote however, I’m not sure Mr. Ugaste understands any of this.

Comment by TheInvisibleMan Wednesday, Mar 13, 24 @ 11:09 am
Dan Ugaste is a smart guy. Unfortunately he’s associated himself with a party that has dumb messaging. This is the best they have to offer.

And unfortunately for Ugaste and the ILGOP we still remember what budgeting and credit ratings looked like the last time their party was in the governor’s mansion.

Comment by Pundent Wednesday, Mar 13, 24 @ 11:11 am
Remind me again what Indiana, KY, IA, MO hell even Mississippi ratings are again? Are they higher or lower.

Asking for the rest of the state.

Comment by Old man Poodle owner Wednesday, Mar 13, 24 @ 11:13 am
===Asking for the rest of the state. ===

Did you just get here?

Comment by Rich Miller Wednesday, Mar 13, 24 @ 11:14 am
===in order for taxes collected to have increased wages had to increase===

We tax more than income here. Sales tax collections rose in part because prices went up.

But to say that Illinois is somehow immune to inflationary cost pressures and that it even *helped* our economy is really quite something.

Comment by Rich Miller Wednesday, Mar 13, 24 @ 11:33 am
The Fed Stimulus checks are done and it helped Illinois to solve some of its debt problem. Pritzker did a reasonably good job on this matter. But the Illinois economy is not expanding that much and future years may well be problematic.

In addition, property taxes are quite high and many are feeling the pinch. While this is not totally a GA-Governor issue they need to be talking about it.

Comment by Mason County Wednesday, Mar 13, 24 @ 12:52 pm
=“Our costs stayed what they were but inflation ticked everything up. So while we benefited from it, our people aren’t benefiting because their wages haven’t kept up.”=

Truly Bizarre thinking (and I use the word ‘thinking’ in it’s most general context.)

Comment by Mason County Wednesday, Mar 13, 24 @ 12:54 pm
If you want to cut property taxes that’s fine but you’re going to have to make up the money lost from that somewhere and I suspect he wouldn’t support an income tax increase to do that.

Comment by Demoralized Wednesday, Mar 13, 24 @ 1:18 pm
It’s silly to complain about the credit rating and propose property tax cuts in the same sentence. Those two things are generally opposed. One of the key factors that rating agencies look for is financial stability and political stability, where the politicians won’t play games with revenue streams.

Comment by Duck Duck Goose Wednesday, Mar 13, 24 @ 1:33 pm
I invite Professor Economics to try to find a table at a restaurant in Carbondale, Marion, or Harrisburg on a Friday or Saturday night then tell me how “wages haven’t kept up”.

So sick of this narrative of how people don’t have any money due to inflation.

Comment by Flyin'Elvis'-Utah Chapter Wednesday, Mar 13, 24 @ 1:50 pm
=Asking for the rest of the state.=

You should also ask about GDP growth which is consistently better than the states you listed.

SOmething else that has impacted state revenue is corporate profits and the taxes paid on them. Since COVID we have experienced a three fold increase in revenue from the state that is a direct result of the increase in that revenue. So, not inflation.

= But the Illinois economy is not expanding that much and future years may well be problematic.=

See my comment above.

=In addition, property taxes are quite high and many are feeling the pinch.=

What is your solution?

Eons ago I suspect some cagey legislators realized they could keep state taxes low by shifting one of the biggest burdens on the state, School Funding, to local governments. That allowed them to not have to point a finger in their direction and gave them an eternal scapegoat for taxes, local school districts.

Comment by JS Mill Wednesday, Mar 13, 24 @ 2:03 pm
I’m joining the *visible confusion* posters on this one. Talk about blaming the victims of mega-capitalism for their plight. IL Republicans are just stuck on foolish ideas like this one.

Comment by thisjustinagain Wednesday, Mar 13, 24 @ 2:05 pm
===gave them an eternal scapegoat for taxes, local school districts===

I don’t think that was the intent. But it sure was the result.

Comment by Rich Miller Wednesday, Mar 13, 24 @ 2:07 pm
Correct me if I’m wrong, but wasn’t the governor’s whole proposed budget rollout couched in “the state economy isn’t going to stay like this so the budget has to be adjusted”? How does this translate into “all is well”?

If his district wasn’t a Republican sink he’d have no chance.

Comment by Lefty Lefty Wednesday, Mar 13, 24 @ 3:32 pm
=I don’t think that was the intent. But it sure was the result.=

I get more cynical the older I get.

Comment by JS Mill Wednesday, Mar 13, 24 @ 4:03 pm
Indiana - AAA
Iowa- AAA
Missouri- AAA
Mississippi- AA
Kentucky- AA-
Illinois is the lowest ranked state at A-
Google is your friend

Comment by Frida’s boss Wednesday, Mar 13, 24 @ 4:21 pm
- Illinois is the lowest ranked state at A- -

That doesn’t make Ugaste’s statement any less moronic. Thinking is your friend.

Comment by Excitable Boy Wednesday, Mar 13, 24 @ 4:51 pm
@excitableboy sarcasm, irony and humor are not your friend

Comment by Frida’s boss Wednesday, Mar 13, 24 @ 11:20 pm