Credit agencies aren't the only ones taking notice of Illinois' financial woes

By Audrey Williams

August 24, 2012 Updated Aug 24, 2012 at 10:07 PM CDT

PEORIA, Ill -- Last Friday when Illinois lawmakers failed to reach any agreement on pension reform, national credit rating agencies took notice.

Moody's already lists Illinois as the state with the lowest credit rating. Now the agency says inaction will further strain the state's finances and it could cost the state even more to borrow money.

Financial advisor Joe Stowell said credit agencies aren't the only ones taking notice of Illinois' financial woes.

"We may even see higher taxes in the future which will keep companies from locating in the state of Illinois. It could even cause businesses to move out of the state of Illinois," said Stowell.

After lawmakers failed to pass reform Governor Pat Quinn put blame on republicans, even though Democrats control the legislature.

Political Science Professor Dr. Josh Ryan said as the election season heats up Illinois republicans could be focusing more of their attack on Governor Quinn and the democratic party as a whole than their actual challenger. Democrats, meanwhile, could be trying to distance themselves from Quinn.

"It makes sense to go after the most visible member of the party, especially when it seems to most people is that the leadership failure on these types of issues has been so obvious," said Dr. Ryan.

All legislators except those retiring from office face re-election this year, making many cautious about upsetting voters before November 6th.

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