Moody’s Investors Service on Tuesday downgraded Illinois’ general obligation bond rating to A2 from A1, citing the state’s financial woes stemming from the U.S. recession.
Moody’s cut other Illinois ratings, affecting about $24 billion of outstanding debt, including the state’s Build Illinois sales tax revenue bonds, also cut to A2 from A1.
The downgrade gave Illinois the second lowest U.S. state rating from Moody’s, with California having the lowest at Baa1, a Moody’s spokesman said.
Moody’s said Illinois has yet to take action to tackle a structural budget gap of more than $11 billion, equal to about 35 percent of its expenditures.
This is from a friend who lives in Illinois with whom I was chatting this morning:
“”Vehicle Fee Increases – Illinois standard license plate fees will rise from $78 to $99; car title fees Âincrease from $65 to $95; transfer of registration fees increase from $15 to $25.”
And it is from this state that much of the current appointed ‘worker bee’ leadership in key policy and administrative slots of the current Executive Branch is drawn.