With the Illinois state budget impasse blocking only a limited number of revenue sources, most local governments in the state should be able to get by without an immediate ratings impact bond structures that include covered abatements and adequate liquidity and reserves.

"If this were to last much longer, however, we might see more widespread effects," said a report by Standard & Poor's Ratings Services titled "Why The Current Illinois Budget Impasse Has Had Little Impact On Local Governments Thus Far."

"Despite the state's budget impasse, it continues to distribute most revenue streams to local governments--most notably income and sales taxes," said Standard & Poor' credit analyst Jennifer Boyd, "but the lack of a budget is holding up certain revenue streams, including motor fuel tax revenue and casino and video poker revenue."

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