On November 7th, Illinois received its ninth credit rating upgrade in just over two years, a testament to its measured fiscal strategies. This financial upswing has been attributed to five years of balanced budgets and responsible financial governance under the leadership of Governor JB Pritzker and the Democrats in the General Assembly, according to Illinois.gov.
As per Illinois.gov, from 2015 to 2017, the state suffered eight credit downgrades and was regarded as one of the worst-managed states in the nation. Its bill backlog peaked at nearly $17 billion.
However, instead of faltering under its economic predicament, Illinois demonstrated resilience by addressing its finances, repaying debts, and increasing fiscal transparency. Fitch's report on the upgrade praised the state to actively reduce its long-term liabilities, including clearing unpaid bills, thereby establishing a more sustainable fiscal foundation.
Moreover, Illinois's effort in establishing healthy financial reserves and balancing the budget has been recognized by all major credit rating agencies, including S&P Global Ratings, Fitch Ratings, and Moody's Investors Service. These agencies have collectively issued the state nine upgrades since June of 2021. The state now ranks in the "A" category, signifying a new era of fiscal stability.
In Governor Pritzker's words, "Another credit rating upgrade means millions saved for Illinois taxpayers in interest—money back in the pockets of our state where it can better serve our state residents."
As Illinois continues on its path to financial stability, its progress offers hope to other states facing similar challenges.
