Illinois Bonds Rally After State Moves to End Budget Impasse
- Senate overrides governor’s veto to on budget, tax hikes
- Resolution now awaiting action by the House of Representatives
Illinois Closer to Ending Record-Long Budget Impasse
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Illinois bonds surged as the legislature moved closer to ending a record-long impasse over the budget, increasing speculation that the state may avoid having its credit rating cut to junk.
The rally came after the state senate overrode Governor Bruce Rauner’s veto to approve tax increases and the first full-year budget in two years, sending the measures to the House of Representatives. Without a spending plan in place, Illinois had been squeezed by chronic deficits and credit-rating companies warned that they may withdraw the state’s investment-grade rank, a step that could have prevented some investors from buying its debt.