Illinois has gone 19 months without a budget, and a credit rating agency says that's further deteriorating the state's fiscal status.
Analysts at S&P Global Ratings say the American economy had about eight years of growth since the recession. Many states have used that time to pay off debt and build up reserves. But S&P’s Gabe Petek says Illinois has gone in the opposite direction, letting its debt balloon.
“As far as we can tell, it mostly has to do with budget politics, not anything fundamental to Illinois’ economy, which has certain strengths that it’s currently not capitalizing on."
He says Illinois' fiscal crisis is “a man-made byproduct of policy ultimatums placed upon the state’s budget process.” S&P also notes that an economic downturn would make Illinois "particularly vulnerable.”
Governor Bruce Rauner will give his annual budget presentation Wednesday, and has previously tied any discussion of budget compromise to Democrats accepting his pro-business agenda.
