Moody’s Analytics: More states ready for recession, Illinois one of 10 not ready
A growing number of states have taken steps to become “recession ready” by socking away funds. A new report says several states, Illinois included, aren’t ready.
A June report from the Pew Charitable Trusts said Illinois has around one-tenth of a day’s worth of operating expenses stored in an emergency fund. A new report from Moody’s Analytics says the state is one of only ten to be in such shape.
Twenty-eight have used the booming economic conditions to take surplus revenue and put it away so that they don’t have to either cut services or raise taxes in the middle of a recession, which is when the report says is the worst time for either to happen.
With more than $137 billion in public pension liabilities and a backlog of bills dating back to the budget impasse, professor Michael Belsky at the University of Chicago says Illinois and other states simply don’t have the ability to bolster rainy-day funds.