In the latest installment of Muni Minute, The Bond Buyer's weekly video series that examines, in 60 seconds, a top story municipal bond market participants should have on their radars for the coming week, we take a close look at the Land of Lincoln. On Wednesday, Illinois Gov. Bruce Rauner will deliver his second budget proposal to the Legislature, even as lawmakers have yet to approve the first plan he submitted this time last year. The state has been without a budget since July 2015.
VOICE OVER: Illinois Governor Bruce Rauner delivers his second budget proposal to lawmakers on Wednesday. He and his legislature is yet to approve the first one he did in this time last year. Illinois has been without a budget since the fiscal year began last July. Rauner delayed in his budget priorities., but its unclear what his spending plan will look like as the state heads toward a $5 billion deficit and a backlog of unpaid bills putting a record $10 billion.
Divisions between the governor and legislature mean the standoff won't be resolved anytime soon. Rauner told lawmakers either to work with him or go pass their own budget.
Meanwhile the states public university is weak frayed with some warning of layoffs or even possible closures. A risk of Illinois credit rating which is the lowest of all US states. Fresh ground grades drove up the state yield penalties in its recent bond sale and Illinois now has no new borrowing plan for the near future. I'm Chip Barnett this has been your Muni minute.