Illinois State Treasurer Dan Rutherford Reacts to Moody’s Financial Warning for Illinois

SPRINGFIELD – August 24, 2012 – “Moody’s Investors Service in their August 23 bulletin declared that the Illinois legislature’s failure to enact pension reforms during last week’s special session is ‘credit negative’ for Illinois (A2 stable) and they warned that ‘inaction on the state’s pension liabilities will further strain this lowest-rated US state’s finances’.”

“It looks like Illinois could be heading for another credit downgrade, which will only cost taxpayers more. I have continuously warned the General Assembly and the governor that failure to act on the state pension crisis will create more financial problems in this state that is already the lowest-rated credit in the United States. I will continue to urge the General Assembly and the governor to work towards comprehensive reforms that would repair Illinois’ fiscal health and ensure the viability of our state retirees’ pensions.”

“Revenues realized from the 2011 income tax increase have already been consumed by the large, escalating cost of the state’s pension systems. Illinois’ available resources can neither pay off its massive debt nor cover the cost of providing needed state services to all of its citizens. Comprehensive, constitutional, and fair pension reforms are required to reverse this situation.”