CHICAGO (AP) – Gov. Pat Quinn’s assistant budget director says comprehensive pension reform is needed in Illinois.
Abdon Pallasch said Friday that Moody’s Investor Services revised the state’s credit outlook to negative because lawmakers haven’t acted on pension reform proposals. Moody’s cited the state’s pension funding shortfall and money management practices in its decision.
Pallasch says lawmakers have “a clear opportunity” to enact pension reform when they return to Springfield after the holidays. Pallasch says the governor’s office is working with legislators on the issue.
Quinn has set a Jan. 9 deadline to overhaul the state’s pension system, which is underfunded by an estimated $96 billion.
Moody’s said Illinois’ rating could fall if the state fails to enact pension reforms.
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