By the end of today, Illinois may finally see a budget agreement for the first time in more than two years. House Speaker Michael Madigan announced the House will vote this afternoon to override Governor Bruce Rauner’s veto of a budget package that cleared the House on Sunday. The House adjourned yesterday without a vote due to a lack of attendance. The $36 billion spending plan would be financed with a $5 billion income tax increase. The Senate voted to override the Governor’s vetoes on Tuesday.
Meanwhile, the state’s credit rating may still be headed to junk status despite a budget agreement. Moody’s rating agency said in an email that it has placed the state’s current rating “on review for possible downgrade.” While Moody’s expects the House to successfully override the Governor’s vetoes, they caution that the budget plan “appears to lack concrete measures” to address Illinois’ over 250 billion-dollar pension liability.