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Standard & Poor’s Ratings Services has placed its ‘A-‘ GO rating, ‘BBB+’ appropriation-backed rating, and ‘BBB-‘ moral obligation rating on the State of Illinois on CreditWatch with negative implications following the Illinois Supreme Court’s ruling that struck down the pension reform legislation the state legislature passed in 2013.
First, the ruling kills the pending pension deal with the city’s laborers and municipal workers, sending Emanuel back to the bargaining table. Second, the decision weakens Emanuel’s negotiating position as he seeks pension concessions from Chicago police and fire unions. And third, it adds to state government problems, making help from Springfield still less likely.
Parents who rely on subsidized day care so they can earn a modest paycheck to feed their families. Disabled citizens who need transportation to work or help with daily tasks, from bathing to shopping to housekeeping. Seniors who would be in nursing homes if not for regular caregiver visits. The Illinois Constitution doesn’t protect their benefits.
But he voted for the bill that was struck down!
Appears to actually be qualified. Replaces a Daley hack.
Comment: Not a chance, Rahm. Talk to a lawyer. Start talking reality.
Actually, he was already on the record for that.
Comment: It’s true that Chicago is not the next Detroit, but this article is full of errors.
By: Mark Glennon* The Illinois Supreme Court today invalidated SB-1, the Illinois pension reform law from 2013. Though the ruling was anticipated, its consequences are staggering. The reform law was voided in its entirety. The “police powers” defense — the argument that the state should not have to pay pensions because it’s too broke — was rejected as a matter of law and no trial will proceed. The court said the constitutional pension protection clause, which says pensions cannot be diminished or impaired, means what it says, for the state and all its cities and towns. Here’s what you need
Full text of opinion is linked here. Our analysis will follow.
Comment: Author James Spiotto is a nationally recognized municipal bankruptcy expert in Chicago. He has worked with the Civic Federation to draft its proposal for state legislation, an alternative to bankruptcy, of sorts. Links to Parts I and II are on the right of this site.
Comment: There’s a metaphor of some kind in this, but we’ll leave that to you.
Comment: This is a must-read. No, should have been a must-read years ago. All the forces of the political process push in the opposite direction: deny, delay, extend, pretend.
Comment: The delay in getting a ruling on SB1 is inexcusable. In oral arguments, the five Democratic majority members of this Illinois Supreme Court did not ask a single question. If there are no questions, then give us the ruling.
Chicago Ridge trustees have agreed to amend a controversial ordinance providing generous insurance coverage to elected officials to deny the benefits to future trustees and possibly also those current ones who are not enrolled.
A recent poll shows 75 percent of Illinois residents support having options when it comes to education in their community.
A University of Illinois financial official says the state’s low credit ratings are dragging down the university’s credit and he wants to have the two separated.
In 2014, 107 million domestic visitors came to the Prairie State, up 3.8% from 2013.
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