Madigan Finally Worries about Credit Rating

Democrat leader Mike Madigan seems finally to have figured out that he has some role to play in the downgrading of Illinois’ credit rating.

He sent the following letter to Standand and Poor’s yesterday:

No pension bill passed the Illinois General Assembly while he was House Speaker and that’s all but two years since 1983.

The state of Illinois finances spiraling downward.

Most place the blame for the financial situation in which Illinois finds itself on excessively generous pension benefits.


Comments

Madigan Finally Worries about Credit Rating — 11 Comments

  1. Too little, too late.

    Fifty years of Madigan and his Ponzi Party mismanagement can’t be turned around overnight.

    Last minute letter writing won’t stop Illinois credit rating from being down graded to junk bond status,
    too much money involved.

    Not a matter of if, but when. And what then ?

    Nor will it stem the tide of people and businesses from fleeing this sinking state.

    Thank the first DEMOCRAT you see today.

    Enjoy a safe 4th, all.

  2. The state of Illinois cannot be competitive long term when it is racking up $9 billion interest per year on the unfunded liability on the state pensions (TRS, SERS, SURS, GARS, JRS).

    $9 billion per year is $24,657,534 per day.

    The value taxpayers receive in exchange for $9B per year is zero.

    For fully funded pensions, there is no unfunded liability, and thus no interest on the unfunded liability.

    ++++++++++++++++

    The $9,100,000,000 interest was calculated from the unfunded liability of the 5 state pensions $129,817,900,000 as of the end of fiscal year 2016 (FY 2016), which was June 30, 2016.

    That is 7% interest.

    +++++++++++

    The unfunded liability was calculated based on assets at market value without asset smoothing.

    Using assets at actuarial value and asset smoothing, the unfunded liability was $126,503,600,000.

    ++++++++++++

    The investment rate of return (discount rate) used by the pensions for FY 2016 follow:

    TRS – 7.00%

    SERS – 7.00%

    SURS – 7.25%

    JRS – 6.75%

    GARS – 6.75%

    +++++++++++++++++

    Source document:

    Illinois Policy Institute

    Interest on Illinois’ Pension Debt is $9.1B Per Year

    by Michael Lucci

    March 6, 2017

    http://www.illinoispolicy.org/interest-on-illinois-pension-debt-is-9-1b-per-year

    +++++++++++++

    That document in turn references the following document:

    Illinois General Assembly

    Commission on Government Forecasting and Accountability (COGFA)

    Special Pension Briefing: State Retirement Systems Overview

    November 2016

    by Julie Bae and Jerry Lazzara, Pension Analysts

    On the Commission at that in the 99th General Assembly time were:

    State Senate:

    – Donne Trotter, Co-Chair

    – Pamela Althoff

    – David Koehler

    – Chapin Rose

    – Heather Steans

    – Dave Syverson

    ———

    State House:

    – Donald Moffitt, Co-Chair

    – Kelly Burke

    – C D Davidsmeyer

    – Elaine Nekritz

    – Al Riley

    – Michael Nunes

    ————–

    Executive Director – Dan R Long

    Deputy Director – Laurie L Leby

    Pension Manager – Dan Hankiewicz

    cgfa.ilga.gov > Topics > Pension Reports > Special Reports / Miscellaneous > November 2016 Special Pension Briefing

  3. The junk rating and excessive taxes and pensions are all the fault of Madigan, cullerton and the rest of the democrats who so hate the taxpayers and citizens that pay their outrageous salaries and benefits, PENSIONS!!!

  4. The credit rating for Illinois is not junk rated.

    It is currently one step above Junk.

    +++++++++++++++

    On Sunday June 25, 2017, there was testimony at a Committee of the Whole meeting in the State House of Representatives regarding public sector Pensions.

    There are YouTube videos of two of the testimonies.

    The following five people provided testimony.

    They appear from left rot right in one of the videos:

    Lee Ann Gemmingen:

    – IFT Executive Board Vice President;

    – Southwestern Illinois Federation of Teachers, IFT Local 6600 President;

    – Teacher in Belleville School District 118.

    ————-

    Elaine Ferguson:

    – President of the West Central IEA Retired Chapter in Rushville, IL

    – Retired in 2005 as a teacher from Nauvoo – Colusa CUSD 325.

    – Participant in the 2014 pension reform lawsuit, Harrison v Pat Quinn.

    —————-

    John Stevens:

    – Chief Counsel of We are One, which is a coalition of labor unions against cuts to public sector pensions.

    – Partner at Freeborn and Peters in Springfield.

    ——————

    Dan Montgomery – President, Illinois Federation of Teachers (IFT)

    Ted Dabrowski – VP of Policy, Illinois Policy Institute

    ——————-

    IEA = Illinois Education Association, a statewide teachers union.

    IFT is also a statewide teachers union.

    +++++++++++++++++++

    YouTube

    Illinois Policy Institute Channel

    Ted Dabrowski Addresses the Illinois House on Pensions

    published on June 25, 2017

    http://www.youtube.com/watch?v=1EEtm0l39vI

  5. The text of the testimony of the retired teacher is found here:

    IEA-NEA Regional 12

    Rushville, IL

    Region 12 – Standing Up For Educators

    June 27, 2017

    https://iearushville.wordpress.com/2017/06/27/region-12-standing-up-for-educators

    +++++++++++++

    IEA = Illinois Education Association (statewide teacher union affiliate of the NEA)

    NEA = National Education Association (national teacher union)

    Teachers in Illinois are required to provide dues or fees to the local affiliate, statewide affiliate, and national union.

  6. When are the general elections of 2036? Tic, tock, tic, tock…

  7. We just lost a lawsuit that requires DysfunctionIL to escalate payments to Medicare and its providers with one year to get caught up.

    Grab your ankles everybody here it comes!

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