OAKBROOK TERRACE – Fitch Ratings has revised its outlook on Illinois’ General Obligation bonds from negative to positive, and State Senator Suzy Glowiak Hilton (D-Western Springs) applauds the upgrade as a direct result of responsible spending.“In recent years, Illinois has taken steps toward fiscal stability by including cost-saving initiatives in our state budget, such as cutting down the bill backlog and reducing our reliance on borrowing,” Glowiak Hilton said. “Responsible budget decisions are critical to the fiscal health of our state, and this upgrade signals Illinois is on the path to recovery.”
Fitch’s is the third ratings agency to upgrade the state’s forecast, in addition to Standard and Poor’s and Moody’s.
Highlights from Fitch’s analysis include:
- “Recent fiscal results and the enacted fiscal 2022 budget suggest further improvements in operating performance and structural balance in the near and medium-term that could support a return to the pre-pandemic rating or higher."
- “Recent improvements including reduction in accounts payable and enacting plans for early retirement of federal pandemic loans, signal improvement in budget management.”
- “Broadly, the state reports a $1 billion reduction in total general fund spending for fiscal 2022 ($42.3 billion) versus the current services estimate provided in November 2020. General fund base operating spending remains flat in the fiscal 2022 enacted budget versus fiscal 2021 at $30.8 billion. Funding for K-12 and higher education is up 3%, including a $350 million increase for K-12.”
