Rock Island Today

Given Illinois’ budget, pension debt and business climate, further downgraded credit ratings shouldn’t come as a surprise, Brandi McGuire, Republican candidate for the District 72 state House seat, recently told Rock Island Today.

At the end of September, Standard & Poor's downgraded Illinois’ credit rating from BBB+ to BBB and assigned it a negative outlook, which hints at another downgrade in the near future.

"The downgrade reflects our view of continued weak financial management and increased long-term and short-term pressures tied to declining pension-funded levels," S&P analyst John Sugden said in a statement.

In addition to the state’s pension costs, the ratings agency cited budget deficits and overspending in its reasoning. The downward trend puts Illinois just two steps away from a junk rating.

"I believe that the further downgrading of Illinois' credit rating was, and is, to be expected,” McGuire said. “Our lawmakers are not doing their jobs by passing a balanced budget.”

Illinois is already the lowest-rated state in the country. For the second year in a row, lawmakers failed to pass a complete budget, and they haven’t balanced the budget since 2001, even though it’s required by the state Constitution, according to the Illinois Policy Institute. Even with years of tax hikes beginning in 2014, when the state added $32 billion in revenue, Illinois couldn’t rein in spending.

In the recently passed stopgap budget, Illinois is set to spend $39.6 billion — a $4 billion increase over 2015, which was the last time there was a whole budget, the Institute said.

The report demonstrates the need for pension reform, Gov. Bruce Rauner's office said in a statement.

"It's time for the super majority in the legislature to recognize the current pension system is fatally flawed and requires immediate action," the statement said. "Governor Rauner continues to fight for pension reform and other fundamental, structural reforms that will free up resources to help balance the budget."

McGuire said the downgrading reflects poorly on the state in the eyes of businesses, which already struggle under state policies.

"The credit downgrading will only further make our Illinois businesses less apt to expand and more likely to leave the state if they can,” McGuire said. "Why would potential businesses relocate to Illinois given this further self-destructive government behavior?"

McGuire believes voters are aware of just how bad the economic outlook is in the state.

"The voters of Illinois are not only informed, but sick and tired of the status quo and will vote accordingly in November — for change,” McGuire said.