ILL-inois: State's bond rating is lowest ever for a state, just above junk

Blogger at the border

Sooner or later--preferably the former--Puerto Rico-style bankruptcy is coming to Illinois. The Prairie State just entered its third-straight year without the General Assembly passing an annual budget. It has over $14 billion in unpaid bills and while its pension plans may not be the worst-funded in the nation, Illinois is so close to the bottom of the pension manure pile that it doesn't really matter.

State Democratic party boss Michael Madigan, who has been speaker of the state House for 32 of the last 34 years, is blaming Republican reform governor Bruce Rauner for this ongoing failure. But Madigan's chamber, unlike the Senate, didn't even pass a budget bill.

In response, Standard & Poor's lowered Illinois' bond rating to BB+, which is one step above junk. The state's fiscal year begins in a month. S&P says that another downgrade is very likely if Illinois doesn't pass a budget, which won't be easy because now that the General Assembly's 2017 session has ended, a supermajority is needed to enact a budget.

Madigan is the mother, father, and midwife of Illinois' nightmare. He needs to go.

Can a bankruptcy judge oust Madigan?

UPDATE 5:25PM Illinois Bankruptcy Time: Moody's also lowered the bond rating for ILL-inois.