Illinois has moved from “B” to the “A” class, in terms of its credit rating — an upgrade that signifies outside analysts’ positive outlook on the state’s finances.
The move comes after a series of downgrades during the partisan impasse that left Illinois without a budget and racking up bills during former Gov. Bruce Rauner’s tenure.“Our continued fiscal responsibility and smart budgeting will save Illinois taxpayers millions from adjusted interest rates,” Pritzker said, “and my partners in the General Assembly and I look forward to building on that success.”
Among the positive actions Illinois has taken are a quicker-than-expected repayment of debt, building a $2 billion reserve in the rainy-day fund, the state’s “deep and diverse economic base,” transparent reporting on the budget by government officials and a slowing of the growth in long-term pension debt.
S&P indicated that it could raise Illinois’ rating should the state continue to improve on its budget stabilization fund payments; conversely, Illinois could see a downgrade should the structural deficit increase, including because of “economic uncertainties.” Republicans, however, have cast doubt on whether the spending plan sets up Illinois for a tax increase down the road, particularly should a recession lead to a decrease in revenues.
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