Via ProgressIllinois, Darrell Preston of Bloomberg News reports that in the past week both Moody’s and Standards and Poor’s have lowered their rating of Illinois bonds. Illinois currently has $19 billion in muncipal debt and needs to issue bonds to fund pension payments and road and school construction projects. A lowered bond rating could mean higher interests rates, bringing Illinois another step closer to fiscal insolvency.  In the one year since Rod Blagojevich was arrested, state government might be less of an embarrassment. But the government is no closer to a functional budget that guarantees elemental public services.

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