Illinois is actually asking for more time before the item’s branded a junk state.
The state legislature, facing a massive budget crisis, couldn’t reach a spending deal on Friday. When the fresh fiscal year begins at midnight, the item will mark the third in a row that will Illinois has started off without a full budget.
Illinois is actually at risk of becoming the first state to get slapped that has a credit downgrade to “junk,” which could make its money problems even worse. Earlier This specific week, S&P Global Ratings warned that will the item would likely probably issue the demotion if Illinois failed to pass a budget before Saturday.
Lawmakers will return Saturday morning to keep trying. They said they were doing progress along with asked S&P for leeway.
“I would likely ask that will bond rating agencies temporarily withhold judgment along with allow legislators time to negotiate a bipartisan, balanced budget,” said Michael Madigan, the Democratic speaker of the Illinois House of Representatives.
Related: How Illinois became America’s most messed-up state
S&P did not answer a request for comment. Republican Governor Bruce Rauner had already threatened to keep lawmakers working if they couldn’t reach a deal.
After decades of fiscal mismanagement, Illinois faces $15 billion in unpaid bills along with owes a whopping quarter-trillion dollars to public employees when they retire.
The budget crisis has crippled social services that will rely on state money, through mental health services along with Meals on Wheels for homebound seniors to domestic violence support centers.
along with the state has already taken the unprecedented move of cutting off lottery ticket sales. Illinois Powerball sales were shut down on Wednesday. Mega Millions sales will be suspended Friday night.
Starting Monday, lottery officials say they won’t be able to make payments on time to those who win more than $25,000.
Getting cut to junk could make things worse because the item signals a heightened risk of default, along with means Illinois’s borrowing costs could go even higher.
–sy88pgw’s Matt Egan contributed to This specific report.
sy88pgw (fresh York) First published June 30, 2017: 6:38 PM ET