A financial ratings agency is no longer ignoring a crisis that new Gov. J.B. Pritzker has to battle: People leaving Illinois.
Moody’s claims that Pritzker’s new taxes could threaten more people to leave the state.Moody’s reported that from 2013 to 2018, Illinois saw over 500,000 people move to other states. Its most recent report talks about growing pension debts and deep-rooted budget deficits.
“Unfortunately that’s showing a trend of what’s occuring and we in the legislature, need to react to react to that trend,” said Dan Brady (R-105th District).
“If you look at all the cities where people are going, it’s not because they have cheaper taxes or whatever,” said Dave Koehler (D-46th District). “It’s because they have jobs.”
Moody’s – a national financial ratings agency – said Illinois is facing a “flight of Illinoisans” and the data from the US Census Bureau shows how Illinois is the third biggest net-loser of residents since 2013.
“If you don’t have both sides working together from a policy stand point, both sides being republican and democrat, and working in particular with the business community…they all have to be at the table,” said Brady. “They all are stakeholders because if one fails we all fail. We can’t obviously afford that.”
The report goes on to show that the pension crisis is one of the largest financial reasons the state is suffering, along with high tax rates, large debts, and a crummy credit rating. Lawmakers say it’s their job to find a solution.
“The main reason that people stay is because of job opportunities and so we have to look at ways we can incentivize,” said Koehler.
Pritzker will release his fiscal 2020 budget plan later this month on Feb. 20, which will most likely dive into his plan for a graduated income tax reform. Moody’s calculates a strangling $250 billion dollar debt for the state leaving both sides of the isle curious for Pritzker’s plan.
“Constitutional changes aren’t done by the legislature,” said Koehler. “It’s done by the voters and so that would take place in 2020.”
“Those are all things on the table, but the important thing is, it can’t be a one-sided discussion,” said Brady.
Click HERE to see the Moody’s report.
Click HERE to see the Wirepoints article.