“We are facing a dire situation in Illinois if the three agencies downgrade our credit rating even further,” Rutherford said. “If we fail to take care of our fiscal condition, the consequences will affect our state for decades. We will surpass California for the nation’s worst credit rating.”

Fitch Ratings has recently downgraded the Illinois credit rating from A to an A minus. Within recent weeks the other two major agencies, Standard & Poor and Moody’s, continued their negative outlook watch. As a result, any deal to sell bonds to pay for projects or operate state government will cost taxpayers even more. Traditionally, when times were good, Illinois had little problem issuing bonds to pay for major projects.

Downgrades and negative outlooks by Fitch Ratings in recent years are a reflection of the state's poor fiscal management. Fitch Ratings said, “The rating downgrade reflects the magnitude and persistent nature of the state’s fiscal problems and the likelihood that the budget to be enacted for fiscal year (FY) 2011 will not sufficiently address either the annual operating deficit or accumulated liabilities.”

Fitch highlighted the Administration’s plan to borrow nearly $5 billion more than the state will take in, and defer payments to state vendors, in order to avoid difficult budget decisions.

“The state continues to manage its budgetary deficit by deferring payments to vendors and others,” the agency added, while also pointing out that “the state expects to use additional deficit borrowing to close its projected budget gap.”

Rutherford noted that Fitch’s marks also reflect the failure of the Administration and legislative majorities to rein in spending and create balanced budgets. “This budgetary bubble has burst, but our main problem is the long-term implications with which our children and grandchildren will deal.”