Moody’s upgrades Illinois’ credit rating
By PETER HANCOCK
Capitol News Illinois
phancock@capitolnewsillinois.com
SPRINGFIELD – Illinois received its first credit rating upgrade in 23 years on Tuesday when Moody’s Investors Services raised the state’s rating one notch, citing “material improvement in the state’s finances.”
Although the upgrade still leaves Illinois bonds rated just two notches above so-called “junk” status, Gov. JB Pritzker said it marked a turning point for the state, and he credited the General Assembly and members of his own administration for bringing greater fiscal discipline to the state’s budget.
“Make no mistake, despite all the challenges of the last year, after eight credit downgrades our state suffered under my predecessor, I say with full certainty Illinois’ fiscal condition is heading in the right direction for the first time in the 21st century,” Pritzker said during a Statehouse news conference.
In a statement, Moody’s said its decision was based in part on the recently passed budget, which increases pension contributions, repays last year’s emergency borrowing from the Federal Reserve and keeps the state’s bill backlog in check, with only “constrained use” of federal aid from the American Rescue Plan Act.
Moody’s also noted, however, that Illinois still faces significant long-term financial pressures, including its unfunded pension liabilities which the agency said “are routinely shortchanged under the state’s funding statute.”
“These liabilities could exert growing pressure as the impact of federal support dissipates, barring significant revenue increases or other fiscal changes,” Moody’s said.
“That is certainly something that we need to continue to work on,” Pritzker said. “As you know, from the beginning when I took office, we put forward a variety of methods for us to begin to deal with that. One of those has been a pension buyout program that has been successful. And so we’re going to continue to work on that to make sure that we expand that and offer buyouts to everybody who is in the retirement system that may want one.”
Pritzker said the rating upgrade would save Illinois taxpayers “tens of millions of dollars” in interest costs paid on its debt, some of which he said taxpayers are already seeing in the form of rates paid on some of the state’s most recent notes.
“I think it’s worth pointing out that the bond market trades typically ahead of credit rating agencies,” he said. “So our bonds actually were trading at a kind of higher level, as if the rating had already changed, because people were looking at what we were doing and, on their own, rating our bonds, the investors themselves.”
In addition to upgrading the state’s general obligation bonds, Moody’s also upgraded the state’s Build Illinois bonds – a program begun in 1985 to fund state and local infrastructure, economic development, education and environmental projects – as well as bonds issued by the Metropolitan Pier and Exposition Authority.
Those rating upgrades affect about $33 billion worth of bonds, according to Moody’s, including $27.7 billion in general obligation bonds, $3 billion in Metropolitan Pier and Exposition Authority bonds and $1.9 billion in Build Illinois bonds.
Capitol News Illinois is a nonprofit, nonpartisan news service covering state government and distributed to more than 400 newspapers statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.
Local News
Cook County Animal and Rabies Control offers pet safety tips
Spread the loveParts of Cook County could see up to 12 inches of snow over the next day as a winter storm moves across the area starting tonight. Cold weather creates hazardous conditions for residents and their pets. The Cook County Department of Animal and Rabies Control reminds residents to take special precautions to keep…
Winter storm could bring heavy snowfall
Spread the loveParts of Cook County could see up to 12 inches of snow over the next day as a winter storm moves across the area starting tonight. The county’s Department of Transportation and Highways is monitoring conditions and has resources on standby to keep the 1,500 lane miles the county maintains, safe for drivers.…
Polk insists residents should use 9-1-1 when they need help
Spread the loveBy Jeff Vorva With snowstorms and bad weather hitting the area, first responders and 9-1-1 operators are taxed and stretched out. But Palos Park Police Commissioner Dan Polk said that should not deter people from calling 9-1-1. He insists on it. At the Jan. 24 village council meeting, Polk made a passionate speech…
District 230 waits for judge’s decision on mask mandates
Spread the loveBy Jeff Vorva Stagg and Sandburg students, parents and teachers are awaiting the decision of a Sangamon County judge to find out if there is any change in the mask mandate. District 230 was one of 145 districts in the state taken to court by parents who are against the mandate and believe…
Summit approves deal with CEDA for water assistance
Spread the loveBy Carol McGowan Help may be on the way for some Summit residents that have trouble paying their water bills. The Summit Village Board recently approved an ordinance authorizing an agreement by, and between the Community and Economic Development Association of Cook County. It’s a vendor agreement for the Low-Income Household Water Assistance…
Willow Springs hires Grace as village administrator
Spread the loveBy Steve Metsch Citing his experience in Lyons, Willow Springs Mayor Melissa Neddermeyer said Ryan Grace was the best of five finalists interviewed for the job of village administrator. Grace, 38, had been public works director in Lyons the past four years, working on a wide range of village issues and events in…
Body of missing Forest View woman found
Spread the loveBy Carol McGowan The search for 20-year-old Charisma Ehresman of Forest View is over. The body of the young woman was found Friday evening in her vehicle in Chicago’s South Austin neighborhood, on the city’s west side, which borders Oak Park. The car had apparently been there for several days. The Cook County…
Heritage Middle School cheer team takes first
Spread the loveBy Carol McGowan Congratulations are in order for the Heritage Middle School Cheer Team. The team competed for the first time on Saturday, January 15, at Old Quarry Middle School in Lemont and took first place. It was a huge accomplishment for the team and Summit School District 104 is very proud of…
Area Sports Roundup: Sandburg bowls ’em over at state; Marist cheerleaders win sectional
Spread the loveBy Jeff Vorva Staff Writer Is there a state trophy coming for the Sandburg boys bowling team in the future? With this unpredictable sport, that’s hard to predict. But after a fourth-place finish in the IHSA state tournament, held Jan. 28-29 at St. Clair Bowl in O’Fallon, the needle is pointing up. The…
Neighbors
Capacity crowd speaks out against Evergreen Park dispensary
Spread the loveBy Joe Boyle Additional chairs had to be brought out to seat an overflow crowd of Evergreen Park residents who attended a meeting April 15 regarding a proposed cannabis dispensary for the village. And many who were in attendance voiced their opposition to having a dispensary in Evergreen Park. Most of the people cited…
Countryside puts dog park on hold, will require leashes in two parks
Spread the loveBy Steve Metsch The city of Countryside has put on hold building a dog park, but canines and their owners are still in store for a treat. The city council has unanimously approved a plan to permit dogs in City Park and Countryside Park this year. Previously, they were not allowed in the…
Bridgeview approves auto repair shop
Spread the loveMoves up time for May 1 village board meeting By Steve Metsch Bridgeview is getting a new automotive repair shop. The village board at its April 17 matinee meeting approved a special use permit that will allow a repair shop at 9010 S. Beloit Ave. There was no discussion among trustees. The board…
Summit Fire Department blood drive draws a crowd
Spread the loveBy Carol McGowan The Summit Fire Department, along with the Village of Summit, and the Argo Summit Lions Club held a blood drive this past Saturday, and it drew a crowd that even impressed the American Red Cross. It took place from 9 a.m. until 2 p.m. with non-stop donors walking through the…
Hodgkins toasts village businesses
Spread the loveBy Carol McGowan Hodgkins Mayor Ernest Millsap and the Board of Trustees celebrated the village’s businesses at its annual Business Appreciation Breakfast on April 10. Over 100 people gathered at the Hodgkins Administration Center for a hearty breakfast hosted by the village. Representatives from many businesses that are located in or that work…
Pickleball courts coming to Palos Park
Spread the loveBy Jeff Vorva There will finally be outdoor pickleball in Palos Park. In a process that went longer than anticipated, the Palos Park Village Council was able give the green light to get a pickleball project started on the Village Green. The council voted April 8 to award the contract to U.S. Tennis…
First Secure Bank to host American Eagle gold coin sale
Spread the loveFrom staff reports First Secure Bank & Trust of Palos Hills announced its annual May sale of 1-ounce and ¼-ounce American Eagle Gold Coins, produced by the U.S. Mint, will take place from 10 a.m.to noon on Saturdays, May 4, May 11, May 18 and May 25. The sale will take place at…
Donate teddy bears to our local police
Spread the love. Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 . Have you ever seen the 1955 movie The Night of the Hunter? The children in this movie show such bravery and acceptance in what life has thrown at them. They have to deal with unimaginable events and sadness. …
Boy Scouts collecting tattered flags for disposal
Spread the love. By Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 517-7796 . Goodbye April, hello May. Our American Flag, the symbol of our country, should always be treated with respect. But after bearing Chicago’s brutal winters and hot blazing summers along with being in the…