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Illinois state flag (Anita Lambert / Flickr / CC / Cropped)

Illinois Still Insolvent as Democrats Over-ride Veto to Raise Taxes

Moody’s credit rating service warned on Wednesday that new tax hikes by Illinois’ Democrat-controlled legislature, which over-rode a Republican governor’s veto, may still leave the state insolvent and subject to its debt being the first in the nation to be downgraded to “junk.”

Detroit Bankruptcy

OC Ends 23-Year Bankruptcy as Illinois, Connecticut and Maine Default

As Orange County, Ca. was making its final bankruptcy bond payment to end its 23-year bankruptcy reorganization; Illinois, Connecticut, and Maine went into default shut-downs after failing to pass state budgets before the start of their July 1st fiscal years.

CalPERS (Reuters / Max Whittaker)

Moody’s Warns of Lower State Pension Investment Expectations

Moody’s Credit Rating Service warned last week that budgetary pressure on state and local governments is accelerating as public employee pension systems are forced to follow moves by CalPERS and CalSTRS to lower investment return expectations to 7 percent.