The Bond Buyer has an article about the continued political impasse over the Illinois state budget and how it is threatening roads, schools and services across the state. Without passing a budget by the May 31 end of the regular legislative session, Governor Rauner and legislative leaders have moved to reaching various spending agreements. This threatens the State’s credit rating, its access to bond markets and weaker local municipal bond issuers.
The Bond Buyer article states that:
“About 90% of state spending continues unabated as debt service and pension payments are made from continuing appropriations and court orders, and consent agreements free up other funds. Rauner signed off on public kindergarten-through-12th grade aid for fiscal 2016, while bipartisan agreement freed up a portion of public higher education funding and other spending.”
