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
Building a bridge at Daley College
Spread the love‘After 22’ program to help adults with disabilities By Tim Hadac For Chicagoans with developmental disabilities, their 22nd birthday can feel like falling off a cliff. That’s when they become ineligible for the special education transition services they’ve received all their lives. That ineligibility can last for up to seven years, until they…
Society failed Melissa, Chuy says
Spread the loveCalls for more gov’t funds to fight violence From staff reports Hours after police announced the arrest of two suspects in the slaying of 8-year-old Melissa Ortega, U.S. Rep. Jesús “Chuy” García (D-4th) issued the following statement. “Since the tragic death of Melissa Ortega, we have seen the resilience and strength of Little…
Charge Brighton Pk. man with child’s murder
Spread the loveDrove getaway vehicle, police say By Tim Hadac A 27-year-old Brighton Park man and a 16-year-old boy have been charged with murder in the Jan. 22 slaying of 8-year-old Melissa Ortega in the Little Village neighborhood. Xavier Guzman, 27, of the 4600 block of South Fairfield, and the teen are in custody. Bond…
Think before you answer a Facebook quiz, BBB says
Spread the loveBy Better Business Bureau staff Social media is used as a fun distraction for some people, and taking a Facebook quiz may seem like a harmless way to pass the time. But are you giving away more information than you think? How the scam works A fun quiz pops up on your Facebook…
Thank you, Karen Sala
Spread the loveBy Joan Hadac GSWNH Columnist At-Large As we all know, longtime Gage Park correspondent Karen Sala has decided to conclude her time with this column. Like every Greater Southwest News-Herald correspondent, Karen made the neighborhoods she served a better place. Thank you, Karen! That said, the search now begins for a new Gage…
Crime prevention starts with each of us
Spread the loveBy Peggy Zabicki Your correspondent in West Lawn 3633 W. 60th Place • (773) 504-9327 Hi neighbors! Before I say another thing, I want to wish my fellow columnist Karen Sala well. As you know, she wrote her final column last week. I love Karen’s style of writing. It’s conversational and natural. I always felt like she…
Plenty to celebrate in February
Spread the loveBy Mary Stanek Your correspondent in Archer Heights and West Elsdon 3808 W. 57th Place • (773) 284-7394 “February is the month when days start to get long and gloomy nights to shrink.” –Anonymous. Thank goodness there are only 28 days this year. We are getting closer to March. But it’s silly to…
Storm scrambles waste pickup in Palos Park
Spread the loveOn Wednesday afternoon, the Village of Palos Park was informed by Republic Services that waste pickup is cancelled in the village, and all other communities they serve, for Thursday, February 3, due to the continued closure of landfill sites from the hazardous winter conditions. Thursday waste service customers will need to hold their…
Archer Avenue may go green
Spread the loveSt. Patrick’s Day parade planned By Tim Hadac Organizers of Garfield Ridge’s annual St. Patrick’s Day Parade are hoping the Lightfoot Administration will give a green thumbs-up to the small but festive celebration of all things Irish. For each of the last two years, City Hall withdrew its support and denied permits based…
Neighbors
Boys Volleyball | Sandburg seeks 26th regional title
Spread the loveBy Randy Whalen Correspondent Coming off the worst season in program history in 2023, Sandburg was not going to settle for anything less than better results this year. Past the midway point of this season, however, the Eagles had a record of 11-8. But they closed the regular season strong, winning 11 of…
Baseball | Red-hot Reavis looks to make noise in postseason
Spread the loveBy Xavier Sanchez Correspondent Reavis is determined to send their head coach Don Erickson into retirement on a high note and will head into the postseason red hot and as South Suburban Red champions. The Rams defeated Oak Lawn 3-0 for the second straight day on May 15 to clinch the conference title.…
Sports Bits | Rice boats at Carlyle Lake, Hawkeye DB and Do It Stevie’s Way
Spread the loveBy Jeff Vorva Correspondent Noteworthy sports briefs from May 12-19 • Brother Rice’s No. 1 boat of Joe Hall and Joe Judeh took 31st in the state bass fishing tournament, which wrapped up on May 18 at Carlyle Lake. The Crusaders had a two-day haul of 7 pounds, 12 ounces. The Crusaders’ No.…
Nothing NU at SeatGeek
Spread the loveBy Jeff Vorva Correspondent There was speculation that because of the renovations being done at Ryan Field, Northwestern would schedule a few football games at SeatGeek Stadium in Bridgeview this fall. The Wildcats announced their schedule and no home games are listed at SeatGeek, but the situation is still fluid. They are opting…
College Softball | Close losses at nationals end Saint Xavier’s season
Spread the loveBy Jeff Vorva Correspondent The Saint Xavier softball team played three nailbiters in the opening round of the NAIA Tournament. But the end result was a 1-2 record to eliminate the Cougars from advancing. SXU (28-14) opened the tournament by nipping Bellevue (Nebraska), 5-4, in Sioux City, Iowa on May 13. Alexus Reese…
Red Stars’ Naeher misses loss to Gotham
Spread the loveBy Jeff Vorva Correspondent The world’s best kept secret is still a mystery. The Chicago Red Stars are not releasing information to the public about the severity of a thigh injury or the status of world-class goalie Alyssa Naeher. What is known is that she did not play in a 2-1 loss to…
Summer calendar filling up quickly
Spread the love. By Patti Tyznik Your correspondent in Clearing and Garfield Ridge (708) 496-0265 • ptyznik@gmail.com . Summer is rapidly approaching, and the neighborhood is geared up for lots of great summer fun and activities. The Midway Chamber of Commerce’s farmer’s market will be opening on Wednesdays at the end of May through September…
Shepard’s Kyla Motley cruises to two medals at girls state track finals
Spread the loveBy Jeff Vorva Correspondent Shepard junior Kyla Motley medaled in two events in the Class 3A girls state track and field meet, the finals for which were held May 18 at Eastern Illinois University in Charleston. Motley finished fourth in the long jump with a leap of 18 feet, 4 inches. She finished…
Boys Tennis | Lyons’ Jack McLane and Mason Mazzone win sectional doubles title
Spread the loveBy Jeff Vorva Correspondent The area produced a handful of boys tennis state qualifiers, but only one entry is headed to state as a sectional champion. At the Class 2A Lyons Sectional, the Lions’ Jack McLane and Mason Mazzone were doubles champs. The state meet opens May 23 at various sites in the…
Water Polo | Lyons boys win third state title; girls finish 3rd
Spread the loveBy Jeff Vorva Correspondent The best matchup of the IHSA boys water polo state tournament was arguably in the quarterfinals. That battle between Lyons and New Trier could have been considered the real state championship match. But no matter what, the Lions are state champions. Heading into the postseason, Lyons had just three…