Downgrade: Illinois' credit downgraded by S&P

On August 17, 2012 the Illinois General Assembly ended its special session, having failed to pass comprehensive reforms to the state's pension system, which S&P has cited as one reason for its downgrade of the state's general obligation debt from A+ to A with a negative outlook. Ratings downgrades can increase interest costs on bonds, resulting in higher expenses for state infrastructure projects including schools, highways and other improvements.

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[Lisa k]

This is scandalous rent seeking BS! IF we paid the money for our future, then not getting it back for our golden years is criminal.. IF the Govt hasnt handled our money well, its their problem. Maybe they should stop sleeping with corrupt banks and corporations. IF I work for 40 years and paid money into a pension program, I'd best be getting it back. Its highway robbery.. the rich taking from the poor.. rent seeking schemes.

[PKam33]

Why does fiscal responsibility have to come at the expense of pension benefits? Aren't there other ways to either cut spending or raise revenues? How would the public react if Social Security benefits were threatened? For state employees who were required to pay into a pension fund instead of earning Social Security, this is grossly unfair.

[inkiw]

I'm glad he's doing a lot better after his stroke!

[RetiredSchoolPsych]

Are you suggesting that public employees are "not responsible for their own money"? I also have 403b accounts, which are our equivalent of the 401k, but that's not the issue. The issue is that we have a contractual agreement for a defined benefit plan, we have always contributed our portion, but legislators spent their contribution in other ways: roads, schools, trips for themselves, who knows? The fund lost the growth that would have occurred in the market if the money had been there.

[5Alenka]

what was your message Kirk? who is resposible for mismanagement? I thought you are a Senator, aren't you somehow responsible and all your cronies?

[fosterliberty]

The problem with pension plans are that it is a defined benefit program. Your payments are guaranteed no matter the return of the underlying investments. This leaves the taxpayer on the hook. Public employees should enjoy the benefits of 401ks, and be more responsible for their own money.

[Deadhead102]

Why is Sen. Kirk commenting on this? He's our US Senator; isn't there enough going on there to keep him busy?

[Chris Janotta]

Wow...313 views. Your video seems to be about as popular as the pension proposals you've offered up.

[Robert Holzer]

It is a sad commentary on the state of affairs in Illinois, but the people of Illinois continue to elect these unqualified politians. Who is to blame for that? When less than 1/2 the people take time to be informed voter this is the result. We seem to take pride in elected people that have been convicted of crimes, and how many are now in prison or have spent time in prison or should be in prison but haven't been caught yet.Wake up Illinois!

[David Roth]

As a retired teacher, how does Illinois take money from the teachers retirement fund that teachers have paid into with good faith & not repay it, now ask us to take less as a result of our law makers poor management. I paid into Social Security & qualify for benefits I can not receive full benefit because of my teacher pension which you now wish to cut to balance a budget. How about you cutting the retirement benefit & health insurance of the Lawmaker to help balance the budget? I an lock in!

[Christine R]

I have heard nothing viable for pension reform. The proposed cap when projected out 35 years would condemn public employees to the poverty level. Changing benefits to already retired people is unfair, as many live on a tight budget already. What about all those missing State of Illinois vehicles? What happened to finding them? What other revenue options are being proposed? Who violated the Constitution in not funding the pensions decades ago? Hold them accountable!

[Ellington1899]

I hope Sen Kirk realizes that the problem has evolved because lawmakers did not have the backbone to lead. The state is in debt not because of teachers, but because of irresponsible lawmakers.