After the cowardly failure of the Illinois legislature to address the problem the state faces in paying its public pensions in its regular legislative session, Illinois, already the state with the lowest credit rating, has had its credit rating lowered again:
One of the three major ratings agencies has downgraded the value of Illinois state government credit.
Fitch Ratings said Monday it would drop the Illinois rating from “A” to “A-” based on lawmakers’ failure to enact a solution to the state’s public-employee pension crisis.
Illinois already has the lowest rating in the nation. Lower ratings mean paying higher interest rates on borrowed money.
A lower credit rating means higher operating expenses for the state—the state relies very heavily on short term borrowing. For a good backgrounder on Illinois’s finances see here. That means that not only have Illinois’s legislators failed to face the state’s most serious fiscal problem they’ve actually compounded it.
When will the voters of Illinois realize that sending the same people who dreated the problems in the first place back to Springfield year after year, term after term, where they can refuse to cope with the problems again and again? Never, is my guess.