Moody's: No Budget Shows 'Weak Governance' In Illinois
From the Associated Press
A major credit rating agency is warning legislators and Gov. Bruce Rauner to reach a budget agreement by late September because it's linked to other massive financial problems.
Moody's Investors Service said Monday the ongoing stalemate underscores "weak governance" and is symptomatic of other "severe" challenges like ballooning pension payments, debt costs and dwindling revenues with the rollback of the 2011 income tax increase.
Moody's said Illinois' projected budget hole is about $5 billion, and addressing it will become harder if lawmakers approach the September end of the fiscal quarter without a budget deal.
The Republican governor and Democratic-controlled Legislature haven't agreed on a July 1 fiscal year budget. Money is still being spent, including through court orders. Some lawmakers are predicting a deal will not be reached this year.
Rating agencies have given Illinois the worst rating of any U.S. state.
Read more in our daily News Update...
From the Associated Press
A major credit rating agency is warning legislators and Gov. Bruce Rauner to reach a budget agreement by late September because it's linked to other massive financial problems.
Moody's Investors Service said Monday the ongoing stalemate underscores "weak governance" and is symptomatic of other "severe" challenges like ballooning pension payments, debt costs and dwindling revenues with the rollback of the 2011 income tax increase.
Moody's said Illinois' projected budget hole is about $5 billion, and addressing it will become harder if lawmakers approach the September end of the fiscal quarter without a budget deal.
The Republican governor and Democratic-controlled Legislature haven't agreed on a July 1 fiscal year budget. Money is still being spent, including through court orders. Some lawmakers are predicting a deal will not be reached this year.
Rating agencies have given Illinois the worst rating of any U.S. state.
Read more in our daily News Update...