Reality check: Even $200 billion in federal bailouts hasn’t rescued Illinois from the bottom of the barrel – Wirepoints

By: Ted Dabrowski and John Klingner

During the recent gubernatorial debate, Gov. J.B. Pritzker said the following about his achievements:

“I’m proud of what we’ve achieved over the last four years. We’ve balanced the budget. We paid off all our states to overdue bills. We got six credit upgrades and provided $1.8 billion in gas grocery and property tax relief…”

The governor is taking credit when he deserves little to none. If Illinois is any better off in the short term, it’s because of the nearly $200 billion in federal Covid bailouts Illinois’ private and public sectors received – not anything the governor has done. We’ve documented that in detail here, here and here.

What’s worse, all those billions have done nothing to end Illinois’ outlier status. This state is still at the bottom of the barrel nationally when it comes to fiscal health – especially credit ratings. Moody’s continues to rate Illinois’ finances the worst in the country, while the city of Chicago is still junk rated.

It’s not just the credit rating that’s bad. Property taxes are still the highest in the country, according to ATTOM Data Solutions. Illinois pension debts are by far the nation’s largest, based on Moody’s pension calculations. The state has the country’s 3rd-highest unemployment rate, the third-worst domestic out-migration rate, and the nation’s third-worst home appreciation since 2000. Illinois is still in deep trouble.

For sure Illinois is no longer at the precipice of a junk rating, where it was just prior to Covid, but that’s only because the Pritzker administration was saved by the federal government’s bailouts. Those billions have helped flood the state’s coffers directly (stimulus funds) and indirectly (income, sales and other tax revenues) for more than two years now. 

All that cash sloshing around made bondholders more secure in the near-term – which is all the rating agencies care about. Hence Illinois’ rating upgrades.

Illinois wasn’t the only fiscally-broken state to receive an improved bond rating. New Jersey and Connecticut, which along with Illinois were the worst-rated states in the country, also got their first upgrades in 20 years.

“A major Wall Street rating firm has upgraded New Jersey’s credit for the first time in two decades, a milestone achievement after years of downgrades that damaged the state’s borrowing power.”

“For the first time in 20 years, a Wall Street credit rating agency has formally upgraded its rating of Connecticut’s finances.”

Neither of those states would have gotten upgrades without the influx of federal cash. New Jersey received $152 billion and smaller Connecticut received $58 billion in bailouts and stimulus funds.

Illinois received $188 billion of the trillions doled out by the feds. We’ve documented the payouts in past pieces, but below are the latest Covid aid numbers according to the Committee for a Responsible Federal Budget

Those trillions in bailouts, by the way, are largely responsible for the record inflation Americans are dealing with. Pritzker was one of the biggest cheerleaders pushing for the bailouts and, in fact, by continuing to keep Illinois in a “disaster” status, he’s bringing in extra federal dollars that only make inflation worse.

The bottom line is this: Gov. Pritzker has no business touting the state’s credit ratings as his own “achievement.” If he wants to take credit for anything, it should be for his contribution to the nation’s highest inflation in 40 years.

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ger42
1 year ago

So where is the money for Police departments in this $188B? Joe the big guy said that it can be used to fund the police.

Admin
1 year ago
Reply to  ger42

Bingo. I got a column in the queue on that.

Marie
1 year ago

Bottom line is if Governor Pritzker ran a business the same way he is running the State of Illinois he would be in jail. But as a governor he has full reign to destroy our state and those in power who could and should stop him don’t have guts enough to do their job. That’s why I’m not voting for them either. I am so sick of only having a choice between the lesser of 2 evils.

K6
1 year ago
Reply to  Marie

If i’m reading this correctly. You are not voting for either candidate? I wish you would reconcider We have to seek the leader that with work for all the people they are representing. We as voters in ILL will not change anything by sitting on the sidelines. In the case, their is only one that is truly evil.

state_pension_millionaires
1 year ago

WirePoints is awesome! Thanks! IL/Chicago politicians are the worst, and are beholden to the public unions, at our expense. You uncover and report the truth, in a factual and understandable way.

IL non-union taxpayers are worst treated taxpayers in the country. We will continue to learn and react.

Honest Jerk
1 year ago

I strongly support Gov. Pritzker. What he and Lightfoot are doing in Chicago/Illinois is great PR nationally for the non-Dem candidates in other states. Hopefully, he continues with the bonehead ideas like Safe-T. Also, seeing crime skyrocket in the city/state with some of the most rigid gun laws is awesome. Keep those great ideas coming J.B. and Lori. The Honest Jerk loves you.

Admin
1 year ago
Reply to  Honest Jerk

Maybe that’s why our out-of-state page view clicks are spiking up fastest. We’ve had as much as 50% of our traffic from out of state in some recent weeks.

Old Joe
1 year ago

That spigot may get turned off after the November election. Then you’ll see Illinois ans Chicago have been swimming naked.

Mr Peabody's Boy Sherman
1 year ago

But, but, but, the commercials say JB balanced the budget. But, but, but, the commercials say JB paid down state bills.
But, but, but, the commercials say JB added pension cash.
But, but, but the commercials say JB saved the state.
But, but, but the commercials LIE!!!

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