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"We've taken the steps necessary to
keep the state on sound financial footing. But Moody's is clearly
concerned about the state's ability to move swiftly to balance the
budget in the face of a continued weak economy. The $200 million
supplemental bill to restore our budget cuts for the next six months
without any way to pay for that spending would make that situation
worse," Gov. Ryan said.
Ryan noted that Moody's has similarly
changed its outlook for 16 other states. Nonetheless, the governor
is disappointed that hard-fought efforts to balance the budget
during last spring's legislative session may be undone and in the
process worsen the state's financial picture.
Moody's did maintain the state's Aa2
credit rating and notes that general obligation bonds like Illinois'
are still a "particularly safe investment." But Gov. Ryan notes that
the strong credit rating is attributable to his administration's
sound budget practices, which means spending must be in line with
declining revenues.
"I have no doubt that over the long
haul, Illinois' diverse economy will recover from last year's
terrorist attacks and the ensuing downturn in the economy. But, in
the short term, we must control spending until revenues improve,"
Gov. Ryan said.
[Illinois
Government News Network
press release] |
