Illinois treasurer to discuss potential ongoing fiscal peril
CHICAGO -- Illinois state Treasurer Michael Frerichs (FRAYR'-iks) will discuss potential financial peril facing the state despite a budget law taking effect last week.
The Democrat will have a news conference in Chicago Monday. His staff says he will discuss "the financial consequences and address the negative impact" facing Illinois if credit-rating agencies proceed with threatened downgrades.
Lawmakers enacted a $36 billion budget last week over vetoes by Republican Gov. Bruce Rauner. All three major bond houses had warned Illinois creditworthiness would be downgraded to "junk" status without a deal.
Two gave Illinois a reprieve because the plan includes a $5 billion increase in income taxes. But Moody's Investors Service indicated it might cut Illinois' grade regardless.
The first-term treasurer says he will also "identify specific ways" for avoiding another downgrade.