Illinois (State of) – Pension burden will erode credit without offsetting actions

Source: Ted Hampton, Thomas Aaron, Emily Raimes, Nicholas Samuels, Timothy Blake, Moody’s, Issuer In-Depth, May 30, 2018
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When fiscal 2019 begins on July 1, the State of Illinois faces a sharp jump in its budgetary fixed costs, which include debt service, retiree healthcare, and pension contributions. These cost pressures are likely to intensify in future years.