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| Continued Mismanagement |
In issuing the downgrade, Moody's cited growing pension liabilities.
The credit ratings agency also kept a negative outlook on the lower rating due to "formidable" challenges facing the county in getting pension reform through the Illinois legislature.
Moody's said the county's pension contributions fell short of actuarially required contributions. While Cook County reported an unfunded pension liability of $5.6 billion at the end of 2012, Moody's said more conservative assumptions would raise that liability to $12.7 billion.
It also noted that the county, the largest in Illinois and the second largest in the United States, shares about half of its tax base with Chicago, "resulting in a significant overlapping long-term liability burden."
The credit rating agency last month dropped Chicago's GO rating three notches to A3 with a negative outlook due to the city's own pension funding problems.
Chicago and Cook County need state legislative approval to change their pension systems. Meanwhile, Illinois lawmakers have been unable to come up with a fix for the state's $100 billion unfunded pension liability.
"The General Assembly's legislative paralysis to date with respect to enacting its own pension reforms may further delay the county's attempt to present a reform package, despite having a significantly developed plan," Moody's said in a statement.
It added that strong protections for public employee retirement benefits in the Illinois Constitution "may result in a legal challenge that could further delay the implementation of reforms."
The downgrade affects $3.7 billion of the county's outstanding debt. Owen Kilmer, a spokesman for Cook County Board President Toni Preckwinkle, said the county will continue to be negatively impacted until the state deals with local pension funds.
"President (Toni) Preckwinkle is urging the pension conference committee to work swiftly to address the state's pension systems so the General Assembly can turn its attention to local funds like Cook County that are in need of comprehensive pension reform," he said, referring to a legislative panel that has been meeting since June on state pension reform.
Fitch Ratings on July 24 affirmed the county's AA-minus GO rating with a negative outlook.
BLOGGER HEARS THAT THE NUMBER OF COOK COUNTY EMPLOYEES HAS RETURNED TO TODD STROGER LEVELS. HOW'S THAT FOR REFORM?
Why would you expect anything better? Preckwinkle, Daley, Stoger, Obama, Quinn, Not one one them ever worked in private industry.
ReplyDeleteOnce again, Democrat Criminal politicians rape the Middle-Class-Taxpayers, for their own benefit, or by their completely irreponsible and incompetent ways of governing.
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ReplyDeleteA complete fraud. She has Suffredin,Fritchy,Daley,goofy Murphy and ,connected Gainer in her corner. And oh yeah the double dipper Tobolski is a real piece of work.
ReplyDeleteThe Blacks do what they are told and maybe Schneider and Sylvestri somewhat independent but Schneider got the county to buy his looser golf course. A joke to say the least because there is no real opposition to challenge Preckwinkle. I forgot Liz and her McCauley credential. I'll let others comment. Nice kid. For starters check a few campaign contributions over there.
Another weekend of loud amplified music blaring all day and night, compliments of the Mt. Greenwood Hillbilly's "Block parties" aka. Drunk-Fests, and nothing done about it by the incompetent 022nd District Police or the equally incompetent 19th Ward Democrat Politicians. Afterall, one block wants to get drunk and party to overly loud amplified music, so why worry about the rest of the surrounding neighborhood up to a mile away, who would just like some peace and quiet, who are stuck listening to this crap all afternoon and night ? Typical Democrat mentality. Have to try to sleep on days because you work Midnights and can't ? Call in sick.
ReplyDeleteThe Daleys moved a few hundred family members from the city to the county just last year.
ReplyDeleteThieving, lying CROOK County Democrat Politicians selling White Middle Class Taxpayers down the drain. Doing nothing except stealing tax dollars as usual.
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