LA GRANGE—Moody’s Investment Service has downgraded Illinois’ Bond rating from A1 to A2 and declared the state’s outlook is “negative,” which means higher costs when the state needs to sell bonds for the Capital Projects Program or any other future plans. Representative Jim Durkin (R- Western Springs) is very disappointed by the downgrade, but is not surprised due to the lack of action by the Democrat controlled legislature this session.
For years, the House Republicans have stated how we need strong, meaningful financial reforms in the budget, including the costly Medicaid and pension components,â said Durkin. âThe Democratic leadership has continued to sweep our proposals under the rug and further run this great state into the ground.âAccording to Moody’s the A2 rating has also been assigned to the $800 million in ‘Series A and Taxable Series B’ general obligation bonds that the state has scheduled to price on January 11, the state's $2.47 billion of outstanding Build Illinois sales tax revenue bonds, the $2.48 billion of ‘A3 from A2’ of Metropolitan Pier and Exposition Authority and $73 million in Civic Center Program bonds. The proceeds from the planned general obligation bonds will finance education, transportation and other capital development projects across Illinois.
“In order to increase our bond rating we will need to focus this session on credible long-term pension funding and a comprehensive plan to reduce the state’s $8 billion backlog of bills,” said Durkin. “If the Democrats continue to ignore the state’s financial problems another session, I would not be surprised if our bonds are downgraded even further.”