Ill. continues to build up “Rainy Day” fund with $100M deposit – KFVS12

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ILLINOIS (KFVS) – Governor JB Pritzker announced that Illinois’ “Rainy Day” fund now has more than $850 million to weather potential economic turbulence after a recent deposit of $100 million.

Gov. Pritzker says his office and the General Assembly worked together to ensure the state would have a record $1 billion in the account this fiscal year, and today Comptroller Susana A. Mendoza announced the deposit of $100 million of that commitment.

“I’m thrilled to announce that we’ve deposited an additional $100 million into our state’s Rainy Day Fund,” said Governor JB Pritzker. “This is just one of the ways that we are building long-term financial sustainability—and we are seeing tangible results in real-time. From tax relief for Illinoisans to our six credit rating upgrades, we are creating an Illinois that is economically prosperous for all. I want to thank Comptroller Mendoza for swiftly depositing this funding early in the fiscal year.”

Illinois’ Budget Stabilization Fund had been decimated by budget impasses and mismanagement. At one point, Gov. Pritzker says the fund held less than $60,000.

According to a release, starting in FY24, state law requires minimum payments of $45 million/year will be required in each state budget to continue stabilizing the fund.

Credit rating agencies pointed to the Budget Stabilization Fund as a key reason for Illinois’ six ratings increases during Gov. Pritzker’s term.

S&P Global Ratings and Fitch Ratings both cited the fund’s improvement in their decision to increase its rating, as well as responsible payments to pension funds and up-to-date bill payments.

These upgrades allow the state to borrow money at a lower interest rate, saving taxpayer dollars.

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July 13, 2022 at 05:36PM

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