It's never fun to get a warning – from law enforcement, a doctor or a creditor. But it's never wise to ignored warnings from the experts, either. Illinois was warned this week by a key credit rating agency – Moody's. It remains to be seen how Governor Pritzker and the Illinois General Assembly responds.
Will they heed the warning, or foolishly blow it off again?
The brainy guys at Wirepoints.com explain that for the first time, Moody's actually points to the consistent, growing number of people moving out of Illinois as part of why they place Illinois bonds just above junk level:
The ratings agency paints a grim picture, especially considering Illinois taxpayers have seen state pension debts grow by $80 billion over the decade despite a quadrupling in the amount of money they’re putting in.
Illinois’ high tax rates, increasing out-migration, enormous debts and a near-junk credit rating should force Pritzker to pursue a constitutional amendment for pensions. A reduction in retirement debts – for both pensions and retiree health insurance – is Illinois’ only true option. But all indications show the governor is loathe to pursue an amendment.
Wirepoints.com doesn't put much hope into the controlling Democrats heeding Moody's warning:
Instead, look for Pritzker to ignore Illinois’ conundrum and the flight of Illinoisans to continue.
Read the rest at Wirepoints.com.
