Even With Budget, Illinois At Risk For 'Junk' Credit Status

SPRINGFIELD, IL — A major credit-rating agency has put Illinois under review for a rating downgrade even if lawmakers override Gov. Bruce Rauner's veto of a long-elusive budget deal.

Moody's Investors Service said Wednesday that while lawmakers have made progress toward fiscal recovery, the package the Illinois House is set to consider Thursday doesn't address the state's massively underfunded pensions. They say it also doesn't do enough to pay down a $15 billion bill backlog.

Moody's downgraded Illinois' credit rating to one level above "junk" status on June 1, after lawmakers wrapped up the regular legislative session without a budget agreement for the third consecutive fiscal year.

Rauner dismissed the possibility of a downgrade earlier Wednesday. He urged lawmakers not to override his veto, saying a tax increase included in the deal is a "disaster."

Photo: Illinois Gov. Bruce Rauner speaks during a news conference, Wednesday, July 5, 2017, in Chicago. Rauner vetoed a package of legislation that raised the income tax by a permanent 32 percent to finance a $36 billion spending plan, which would be Illinois' first budget since 2015. The Illinois House has scheduled a Thursday session which the chamber would vote to override the veto, ending a budget stalemate that has lasted more than two years. (AP Photo/G-Jun Yam)