The State's Credit Fundamentals Continue to Improve

A Path Toward Fiscal Stability Illinois' recent fiscal history is one of instability and uncertainty. The budget impasse in FY2016 and FY2017 damaged the State's reputation and relationship with entities dependent on state payments. ✓ The backlog increased from $5 billion at the beginning of the impasse to a peak of $16.7 billion. ✓ Late payment interest penalties from the impasse exceed $1.25 billion. Illinois will continue to face structural deficits, including an estimated deficit of $3.2 billion in FY2020. ✓ Structural deficits cannot be addressed by spending cuts. alone. ✓ Revenue adjustments and a different approach to the payment of the state's pension contributions are necessary. 14 AL OF THE STAT AUG. 26 1818 OF ILLINO

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