CHICAGO – Monday morning, Illinois State Treasurer Mike Frerichs, a Democrat, listed five things he's calling on the governor to do immediately in order to avoid junk bond status for Illinois:
- Travel to New York and speak directly to the three rating agencies and explain the lowering status to be unwarranted.
- Proceed to use bond issue to pay down Illinois' $15 billion backlog of bills
- Declare whether he will follow evidence-based model outlined in the state's K-12 school budget. If he refuses, some schools may not have funding to open in the fall.
- Clearly communicate the higher income tax rates with employers to collect funds.
- Eliminate divisive rhetoric because rating agencies want to see cooperative tone among politicians.
"The governor needs to take action," Treasurer Frerichs said. "We are already taking the necessary steps to do our part. The governor is not showing intention to take action. If he doesn't, Illinois could plunge into junk status."
Frerichs said his staff thinks there's a possibility of paying down up to $8 billion in backlogged bills.
"If these steps don't happen, Illinois would be the first state to achieve junk bond status – this is not one I'd like to see Illinois take first place on," Frerichs said.
