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S And P Encourages Keeping Income Tax Hike

Wed, 09 Apr 2014 16:58:11 CDT
By: AP

Another major credit-rating house says the next 50 days of Illinois state budget-making will be "pivotal" to the state's financial health. Standard & Poor's Ratings Services issued the statement. Lawmakers must approve a budget for the coming year by the end of May. Gov. Pat Quinn proposed a budget last month that relies on making a temporary income tax increase permanent to avoid a $1.8 billion revenue hole. S&P says the plan could help the state's finances by preventing sharp spending reductions. But it noted the budget still leans on non-recurring revenue such as an inter-fund loan and reliance on Medicaid reform and other cost-containment. Moody's Investors Service and Fitch Ratings issued similar outlooks last week.

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