One of the three major ratings agencies has downgraded the value of Illinois state government credit.
Fitch Ratings said Monday it would drop the Illinois rating from "A'' to "A-'' based on lawmakers' failure to enact a solution to the state's public-employee pension crisis. Illinois already has the lowest rating in the nation. Lower ratings mean paying higher interest rates on borrowed money. Decades of state under funding has left the five employee retirement systems $97 billion below what they need to cover future obligations.
The House and Senate both enacted their own plans toward a solution, but neither chamber would take up the other's proposal. The Legislature adjourned its spring session Friday without taking any action.
Governor Pat Quinn is trying to schedule a meeting of legislative leaders for Tuesday.
In a written release, State Treasurer Dan Rutherford says he not surprised at the downgrade. He says state leaders have failed to enact meaningful and constitutional pension reform. Rutherford says it is disgraceful that lawmakers ended the legislative session ended without passing pension reform. Rutherford is on a campaign swing through Illinois announcing his candidacy for the Republican nomination for Governor in 2014.
