Illinois Republican Party

Quinn and Giannoulias bear special responsibility as State's credit rating lowered again
6/9/2010

Moody's Investor Services downgraded Illinois' credit rating yet again, citing Springfield Democrats’ failure to address the state's massive structural budget deficit.

Moody's places the blame squarely on state government in Springfield, wholly controlled by the Illinois Democratic Party for the last four years. Moody’s says: “We view the failure to enact significant new recurring fiscal measures as a troublesome indicator with respect to Illinois' governance and management profile.” (Wall Street Journal)

But you don’t need to be a bond analyst to see that the Democrats have driven Illinois’ finances into a ditch. The numbers speak for themselves. Spending and deficits have skyrocketed, while credit ratings have dropped, costing Illinois taxpayers even more money in the form of higher interest payments on Illinois’ debt.

As Governor, Pat Quinn could have demanded the General Assembly cut spending and send him a balanced budget. Instead, he demanded more borrowing so he could get through the election.

As the state’s banker and a self-proclaimed financial expert, Alexi Giannoulias was in a unique position this spring to convince his fellow Democrats in Springfield to enact the spending reforms needed to get Illinois’ finances back on solid ground. Instead, he stayed silent.

Illinois Finances: Then and Now

2006 Budget Appropriations: $55.77 billion (Comptroller’s Office)
2010 Budget Appropriations: $81.42 billion (Comptroller’s Office)

2006 Budget Deficit: $2.328 billion (Comptroller’s Office)
2010 Budget Deficit: $12.8 billion (Civic Federation of Chicago)

2006 Standard and Poor’s Rating: AA (Comptroller’s Office)
Current Standard and Poor’s Rating: A+ with negative outlook (Comptroller’s Office)

2006 Moody’s Investor Services Rating: Aa3 (Comptroller’s Office)
Current Moody’s Investor Services Rating: A1 (State Journal Register)

2006 Fitch Rating: AA (Comptroller’s Office)
Current Fitch Rating: A with Rating Watch Negative (Comptroller’s Office)

Wall Street Journal: 'Moody's Lowers Illinois Rating On Budget Woes'

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