SPRINGFIELD, Ill. (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 Wednesday.
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.