In yet another example of things Democrats have ruined, Illinois is on the fast track to being the first state to have its general obligation debt rated as junk by S&P Global Ratings. Obama’s home state already has the lowest investment-grade rating of -BBB.
The beleaguered state has $15 BILLION in unpaid bills and is currently running a $6 BILLION budget deficit. Illinois owes $800 million in interest and late fees alone. If it is reduced to a junk grade it will become even more expensive for the state to sell bonds.
Illinois has been running a budget deficit since 2002. In 2003 the Democrats won the governor’s seat and have held it since 2015, when current governor Bruce Rauner took over. 2015 was also the year the state’s temporary income tax hike ended.
Since then, the governor and the Democrat-controlled state legislative body, lead by career politican Speaker Michael Madigan, have been at an impasse over budgeting. Taxes were not again increased to make up for the new budget shortfall, and services were not decreased. Without a budget, spending became out of control
Rauner and GOP legislators have been insistent on major pension reforms and property taxes, which Democrats have been reluctant to deliver. Desperate to fix the budget and save the state from junk-status, Rauner has agreed to increase state income tax from 3.75 to 4.95.
The governor and legislator must pass a budget by Friday to keep the state solvent. Without a budget, infrastructure end even pension payments could grind to a halt.
Rauner has warned lawmakers that if a budget is not passed by Friday, the last day of the fiscal year, he will open a special session that will keep lawmakers in the Springfield until a budget is eventually hammered out.
The Illinois Comptroller issued this stark warning outlining the State’s dire straights- it’s worth a watch:
The state’s inability to confront its out-of-control spending has left it in turmoil. Share this 1 million times as a warning to others about what happens when Democrats are in charge for too long.