The Illinois ‘Financial Condition Penalty’ Continues to Grow

June 20, 2016

The Illinois ‘Financial Condition Penalty’ Continues to Grow

An Analysis of Illinois’ June 2016 Bond Sale

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Analysis by the Fiscal Futures Project demonstrates the consequences of the state's poor credit rating. 

On June 16 the state of Illinois sold $550 million in General Obligation Bonds. This was the first bond issue since the state’s recent credit rating downgrades by Moody’s and Standard and Poor’s. The sale also occurred as Illinois ends FY16 without a budget, and failed to pass a budget for FY17.

The analysis shows that the state received $70 million less for this bond sale than it would have received ten years ago, and $12 million less than it would have received six months ago.


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Research Area: Fiscal and Economic Policy

Policy Initiative: none

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