Non-action on pension issue sparks Illinois credit downgrade
Tue, 04 Jun 2013 15:35:04 GMT —
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.
Gov. Pat Quinn is trying to schedule a meeting of legislative leaders for Tuesday.
Decades of state underfunding 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 adopted the other's proposal.
The Legislature adjourned its spring session Friday without taking any action.