DC: Illinois is on the cusp of becoming the nation’s first state to carry a “junk” bond rating, as Springfield’s unprecedented budget impasse stretches into its third year.
Ratings agency S&P Global recently warned Illinois that it will likely lose its investment-grade rating if Republican Gov. Bruce Rauner and state Democrats can’t scrape together a spending plan by midnight Friday. Illinois has been operating without a budget since 2015, accumulating $6 billion in additional debt over the past year alone, reports Bloomberg.
A junk rating would exacerbate Illinois’ enormous debt problem, which is already one of the worst of any state after decades of fiscal mismanagement.
SNIP: How long have we been hearing about this? Pull the trigger.