Illinois’ credit has been downgraded again—to BBB by Fitch Ratings, reported the Illinois News Network.
The report noted the downgrading “reflects the unprecedented failure of the state to enact a full budget for two consecutive years and the financial implications of spending far in excess of available revenues.”
State Rep. Halbrook told the Network, “We’ve either got to raise taxes to pay for this borrowing, or we’re going to deliver less goods and services to the citizens of Illinois because we’ve got a higher cost of borrowing money. But more tax increases without structural reforms just drives more people out of the state, lowering our tax base and making it more difficult to keep up with the spending.”
Illinois is currently tied with New York and New Jersey for the worst outbound migration rate in the country, and yet lawmakers are proposing higher taxes, including the “Business Opportunity Tax” and a personal income tax hike.
Meanwhile, the Commission on Government Forecasting and Accountability’s latest report shows that Illinois’ businesses and workers are struggling to earn the income that would signal that the economy is healthy. Corporate income taxes are down by $444 million, personal income tax is down by $245 million, and this is only worsening the state’s debt issues.