SPRINGFIELD, Ill. (AP) - The Latest on the Illinois state budget situation (all times local):
Illinois Gov. Bruce Rauner’s office is rejecting calls from the Democratic state treasurer to stave off fiscal crisis with personal visits to New York bond houses.
Treasurer Michael Frerichs (FRAYR’-iks) told a Chicago news conference Monday that the Republican governor must commit to enacting a $36 billion spending plan with a $5 billion income-tax increase.
Frerichs says Rauner should personally deliver his pledge to keep major bond-rating houses from downgrading the state’s creditworthiness to “junk” status. A big problem is a $15 backlog of overdue bills.
Rauner spokeswoman Eleni Demertzis (ih-LEH’-nee dih-MURT’-ziss) says the credit-rating agencies are still frowning on Illinois finances because the income tax increase won’t “solve the problems created by decades of unbalanced budgets.”
Rauner says the current budget is $2 billion out of whack.
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12:50 p.m.
Gov. Bruce Rauner is replacing his chief of staff with the head of the conservative-leaning Illinois Policy Institute.
Rauner announced Richard Goldberg is stepping down effective Monday. The new chief of staff will be Kristina Rasmussen, who served as president and chief operating officer of the Illinois Policy Institute. Rauner has previously donated to the group and hired other staff from the organization, which runs a legal center and a news service.
Rauner cites Rasmussen’s work “to defend taxpayers.”
Legislators recently approved a state budget that includes an income tax increase, over the Republican governor’s objections. Several Republicans backed the plan.
Goldberg has been a chief aide to Rauner for over three years, including during the 2014 gubernatorial campaign. He plans to return to foreign policy and national security consulting.
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10:40 a.m.
The state treasurer says Illinois Gov. Bruce Rauner must go to New York to talk bond-rating houses out of knocking the state’s creditworthiness into “junk” status.
Democrat Michael Frerichs (FRAYR’-iks) said in Chicago Monday that the Republican governor should commit to the $36 billion spending plan the General Assembly adopted last week over his vetoes.
It includes a $5 billion income-tax increase. It’s the first budget Illinois has had in two years because of political disagreements. Bond houses have threatened to knock Illinois’ rating down to “junk” even with the budget deal.
Frerichs says Rauner must also move toward borrowing $6 billion approved in the budget to pay down a $15 billion bill backlog at a lower interest rate.
A spokeswoman for Rauner did not immediately respond with comment.
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12:30 a.m.
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.
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