Prairie State Wire

In 2017, Illinois' Rainy Day Fund held a mere $48,000, insufficient to sustain the state for even half a minute. This left Illinois vulnerable during crises such as the COVID-19 pandemic. However, recent efforts led by Comptroller Susana Mendoza and Governor JB Pritzker have significantly bolstered this reserve.

Comptroller Mendoza emphasized the importance of a strong reserve: “Whatever you think Illinois’ most important program is – funding our schools, policing our highways, caring for the elderly – that program is in jeopardy when a crisis strikes if Illinois has not built up a strong reserve.” She noted that this financial strategy contributed to Illinois receiving its ninth credit upgrade last week.

Currently, with over $2 billion in reserves, Illinois can operate for approximately 15 days without additional income. While this marks significant progress from previous years, it still falls short compared to nearly half of all states that maintain at least a 50-day reserve.

Mendoza plans to reintroduce legislation (HB2515) requiring regular deposits into both the Rainy Day Fund and the Pension Stabilization Fund. This move aims to address issues identified by rating agencies as crucial for achieving higher ratings and reducing taxpayer costs.

The Health Care Council of Illinois expressed support for these developments. Executive Director Matt Pickering stated: “As a non-profit member association that aims to always provide high quality care at nursing homes... we hope the need to tap into the fund doesn’t arise.”

Tim Egan of Roseland Community Hospital echoed these sentiments: “Unfortunately, the health care industry suffered through the budget impasse when there was essentially no Rainy Day Fund.”

Jose R. Sanchez from Humboldt Park Health added: “Having an adequate Rainy Day Fund helps ensure that Illinois’ budget for healthcare needs are met during tough times.”

Garth Reynolds from the Illinois Pharmacists Association also praised Mendoza’s efforts: “Illinois pharmacies are appreciative of Comptroller Mendoza’s efforts...”

Comptroller Mendoza acknowledged that building such reserves requires discipline: “It takes self-discipline and real legislative will... A healthy Rainy Day Fund and a reduced pension shortfall don’t bring ribbon cuttings..."

Today's deposit included $7.743 million in interest income and $3.75 million from monthly transfers mandated by law.

Fitch Ratings recently upgraded Illinois' bond rating from 'BBB+' to 'A-', citing improved budget management and significant planned reserve contributions as key factors.