Credit Houses Send Illinois Positive Financial Signals

SPRINGFIELD, Ill. (AP) — Two of the nation's top credit-ratings agencies signaled Monday that it would be a good idea for Gov. Bruce Rauner to accept the results of climactic weekend action to resolve the nation's longest budget stalemate since the Great Depression, but with Democrats trumpeting progress, there was only silence from minority Republicans who fear their governor's agenda will be steamrolled.

Fitch Ratings and S&P Global Ratings, having earlier threatened to toss Illinois' creditworthiness into "junk" status without swift action to approve a budget, smiled favorably Monday on the financial outlook. Fitch described as "concrete progress" Sunday's 72-45 vote in the House of Representatives for a 32 percent increase in the income tax rate to bump up state revenue by $5 billion a year, along with a $36 billion spending outline.

Minutes after Sunday's House vote, Rauner promised a veto. On Monday, Chicago Democratic House Speaker Michael Madigan pledged an override. The fireworks could begin soon. Senate President John Cullerton of Chicago scheduled Tuesday morning votes on whether to accept House changes to the budget legislation, concurrence action necessary to send them to Rauner's desk.

Illinois has entered its third consecutive fiscal year without a budget plan because Rauner has resisted inking a deal without business- and political-climate changes to boost commerce, restore political faith and relieve local property-tax owners.

Read more: https://www.usnews.com/news/business/articles/2017-07-03/credit-houses-send-illinois-positive-financial-signals