“I say with full certainty Illinois’ fiscal condition is heading in the right direction for the first time in the 21st century,” Illinois Gov. J.B. Pritzker said. | Facebook
“I say with full certainty Illinois’ fiscal condition is heading in the right direction for the first time in the 21st century,” Illinois Gov. J.B. Pritzker said. | Facebook
Illinois Gov. J.B. Pritzker is taking a bow for what he insists is the state’s third straight balanced budget and first credit upgrade after eight straight downgrades under his predecessors.
While critics still raise countless questions about the budget truly being balanced, Moody’s Investors Services recently raised the state’s credit rating, pointing to “material improvement in the state’s finances,” according to the Star Courier.
“I say with full certainty Illinois’ fiscal condition is heading in the right direction for the first time in the 21st century,” Pritzker said in a Statehouse news conference, the Star Courier reported. “We are truly forging a new path for our great state. With this ratings upgrade Illinois is poised to save millions of taxpayer dollars after weathering a once-in-a-generation financial storm caused by COVID-19 and the pandemic.”
The governor’s optimism aside, Moody’s new rating also comes with a warning, with researchers noting the state still faces significant long-term financial pressures, topped by its still growing unfunded pension liabilities.
“These liabilities could exert growing pressure as the impact of federal support dissipates, barring significant revenue increases or other fiscal changes,” Moody’s said in a statement.
In that same statement, Moody’s said its decision stems from the recently passed 2022 state budget, which "increases pension contributions, repays emergency Federal Reserve borrowings and keeps a backlog of bills in check with only constrained use of federal aid from the American Rescue Plan Act."
Alerts Sign-up