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Illinois credit rating worst in nation, may be lowered again!

According to today’s Chicago Tribune, the Illinois credit rating was downgraded again last Friday and is now the lowest of all 50 states in the latest rankings of a major credit ratings agency.

Illinois fell to the bottom of the pile following the failure of Gov. Pat Quinn and General Assembly to fix the state’s pension system funding during this month’s lame-duck session, as the state’s pension debt continues to mount each day.

Excerpt:

Standard & Poor’s Ratings Service downgraded Illinois in what is the latest fallout over the $96.8 billion debt to five state pension systems. The New York firm’s ranking signaled that taxpayers may pay tens of millions of dollars more in interest when the state borrows money for roads and other projects.

State Treasurer Dan Rutherford estimated the state will pay $95 million more in interest annually than if Illinois had a AAA rating, which is much higher rating than the state has now.

The S&P credit ratings agency is threatening even further reductions in the state’s credit ratings, if the Democratic majorities and Governor don’t do something to reduce the debt and increased borrowing.

Excerpt:

One other ominous point in the Standard & Poor’s report is that inaction could lead to downgrading Illinois to BBB, an “unusual” low rating for any state. The agency noted that a “lack of action on pension reform and upcoming budget challenges could result in further credit deterioration.”

Not only does Illinois have pension problems, but the state has cut school funding two consecutive years and more cuts are on the horizon. The 67% tax increase last year, most of which went to the pensions, has a sunset clause, which will gradually cause the pension debt to climb even faster. The state also has $8 to $9B in unpaid bills.

 

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17 Comments

  1. There many corporations doing business in Illinois who pay little or zero state income tax.

  2. So Stevie you have a list?

    So I guess maybe bad management has allowed these companies to not pair their fair share in Illinois.

    “Should Illinois companies reveal their tax payments?”

    http://www.dailyherald.com/article/20121207/business/712079693/

  3. How much cannot be revealed (privacy law) but Illinois Dept of Revenue can tell you that two-thirds of Illinois corporations do not pay any taxes, Kraft, Boening, Archer-Daniels, Baxter, Cat? Sort of like Mitt Romney not wanting to reveal all of his income tax statements because he didn’t want folks to know how little he paid.

    • Ted Biondo

      Why are we sitting here wondering if some corporation is paying their fair share of taxes. Shouldn’t we ” New Americans” under Obama, simply take everything these fat cats have? What right do they have to earn more than the rest of us, anyway? Let’s just take it all! I’m sure there will be some stupid people, who would still want to work rather than loaf like the rest of us, Obamamanics, and not mind if we take their earnings – don’t you think? The brave new world has arrived!

  4. I think I’d turn it around and ask why the state of Illinois allows them to not pay taxes.
    Maybe all these companies benefited from incentives.
    Didn’t Sears get convinced to stay?

    Maybe your ire should be directed to the Illinois government.
    http://articles.chicagotribune.com/2011-12-12/business/chi-house-revenue-committee-oks-deal-to-keep-sears-cme-in-illinois-20111212_1_income-tax-tax-break-package-tax-relief

    Chicago, Offering Big Incentives, Will Be Boeing’s New Home
    http://www.nytimes.com/2001/05/11/business/chicago-offering-big-incentives-will-be-boeing-s-new-home.html
    (Craig add http then :, then // to the front of www)

    • Ted Biondo

      The state needs long-term jobs more than tax dollars that are temporarily abated for the providers of those jobs, Mr. Wilson. It’s also the government letting these companies keep their own money to provide the employment. It’s not like Obama taking away “our tax dollars” and giving it to Solyndra and his buddies, through the stimulus program!

  5. BTW, how many businesses have left Illinois, or not expanded here, because of the Chicago Democrats’ deranged fiscal policy?

  6. Ted, Solynda is the tip of the green energy of wasted tax dollars.
    I wonder when Obama and Biden are going to focus like a laser on that 3 letter word “JOBS”

    ” the numbers remain the same: 23 bankrupt, 29 troubled, equals a new “Obama green-energy failure” list total of 52. While billions of “green-energy taxpayer money is gone, and we know that the majority of the loans (90 percent) were funneled to Obama and high-ranking Democrat cronies, the “troubled list is a moving target.” Thus there is no way to give an exact dollar amount what is still at risk, yet we do know that the percentage of cronyism in the failed and troubled list is hoovering around 56% (29 of the 52), until I have time to dig further. ”
    http://greencorruption.blogspot.com/2012/10/green-alert-tracking-president-obamas.html#.UQhYJb-rl8H

  7. On a related topic(Obama, Chicago politics) check this out:

    Ronald Reagan’s Childhood Chicago Home Set To Be Demolished And Turned Into A Parking Lot For Possible Obama’s Presidential Library…

    The Chicago home where the late President Ronald Reagan grew up is slated to be demolished and potentially turned into a parking lot for President Obama’s Library, it was revealed today.

    The home, at 832 E. 57th Street, was where Reagan survived a near-fatal bout of pneumonia in 1915 and he has written fondly of playing in the Hyde Park neighborhood with his brother and others.

    But the University of Chicago has recently purchased the apartment building and they have announced plans to raze it and make it a parking lot.

    Some have said that the liberal Chicago establishment does not want a reminder that Reagan, a conservative icon, once lived in the city.

    Its current mayor, Rahm Emmanuel, was the White House Chief of Staff during Obama’s first term.

    Hyde Park Historical Society board member Jack Spicer said, ‘Whatever you think of Reagan — once the building’s gone, it’s gone forever.’

    http://weaselzippers.us/2013/01/30/ronald-reagans-childhood-chicago-home-set-to-be-demolished-and-turned-into-a-parking-lot-for-possible-obamas-presidential-library/

    • Ted Biondo

      What is shows, Snuss, is that all politicians that are from Chicago were not corrupt – just the overwhelming majority of them.

  8. Steve,

    Are any of these companies breaking the law? If so, turn in the proof to the State of Illinois Department of Revenue and get the finder’s fee.

  9. Ted, it is like what they say about lawyers: The trouble with the legal profession is that 98% of its members give the rest a bad name.

    Come to think of it, didn’t many politicians start out as lawyers?

  10. Terry, Steve just likes to whine. The Illinois government gives the corporations tax incentives so he can insinuate that the corporations are evil.

    No doubt it can’t be the government who has done wrong because Illinois has been run by Democrats for years.

  11. BTW Ted, why isn’t the RRStar updating your blog threads on the Opinions page? The newest one listed is “Obama declares we are not a deadbeat nation – really? “

    • Ted Biondo

      Thanks for letting me know, snuss. I called the blogmaster and let him know what was happening. Hopefully it will be fixed soon.

  12. SNuss,

    I thought I might be only one with that problem. Is Cunningham the blogmaster? :)

  13. No, Pat is the master-race-baiter. ;-)

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