Illinois Back in Crisis as Tax Impasse Risks Rating: Muni Credit
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Another May legislative session in Illinois, another financial crisis.
Lawmakers are shunning Democratic Governor Pat Quinn’s plan to extend tax increases in effect since 2011, while also balking at spending cuts. The impasse means the lowest-rated U.S. state faces a $2 billion budget hole for the year beginning July 1 and risks further bond downgrades. A house proposal relies on one-shot revenue and delayed payments, which rating companies scorn, as a stopgap before November elections.