Illinois' credit rating downgraded after pension reform failure

Chicago Tribune ^ | August 30, 2012 | Monique Garcia

[Zakeet]

Illinois' credit rating was downgraded by Standard & Poor's on Wednesday, a move that came after Gov. Pat Quinn's inability to persuade lawmakers to cut costs in the state's debt-ridden public employee pension system.

The agency lowered the state's credit rating from A+ to A, citing a "lack of action" on changes aimed at decreasing the pension system's unfunded liability, which could hit $93 billion by next summer if nothing is done. Standard & Poor's also gave Illinois a "negative outlook," saying the state's budget future remains uncertain.

It's unclear what impact the new rating will have on Illinois' pocketbook, but it is likely that it will cost the state more to borrow money to finance construction projects including new schools, roads and bridges.

Only California is ranked lower than Illinois by the S&P, with a credit rating of A-. But unlike Illinois, California has been given a "positive outlook." Illinois already has the lowest credit rating in the nation from Moody's Investors Service, which has warned that another downgrade is possible unless something is done to address the state's growing pension liabilities.

[GOPJ]

...is diverting that money to "various nonprofit groups"

Non-profit groups are staffed and manned by elite liberals. These places are one more way they 'feed their own' - full employment centers for liberals...

All of us need to stop giving to charities and "United Way" etc. Until we can establish conservative charities all we're doing is subsidizing liberal causes.

[AD from SpringBay]

The blame falls squarely on the voters of Illinois.

The blame falls squarely on the voters of Chicago, Springfield, and a handful of north-Illinois blue cities.

[AllAmericanGirl44]

You got that right, it was a sickening outcome and the first order of business to oust that pathetic slime
Mike Madigan!

[Southside_Chicago_Republican]

You got that right, it was a sickening outcome and the first order of business to oust that pathetic slime Mike Madigan!

Yes, but the way things are, I'm afraid he'll give up the Speaker's gavel only when they pry it from his cold, dead hand.

[KeyLargo]

Another Illinois Corp in trouble.

Navistar to cut jobs, fiscal 3Q profit falls

Posted: 9/6/2012 12:26:31 PM

CHICAGO (WLS) - Troubled engine and truck maker Navistar International Corp. said Thursday it will reduce its salaried workforce as it announced its fiscal third quarter profit plunged 94 percent from a year earlier to $84 million, including a $196 million tax benefit. Shares of Navistar soared nearly 15 percent in morning trading, rising $2.77 a share to $23.18.

http://www.wlsam.com/Article.asp?id=2527749