Illinois Gov. Pat Quinn is calling the General Assembly back to Springfield on June 19 for a special session to hammer out pension reform, according to a news release from the governor's office.
The announcement comes on the same day that Moody's Investors Service downgraded the state's credit rating to A3 from A2.
“An A3 rating, while very low for a U.S. state, is consistent with the General Assembly's inability to steer the state from a path to fiscal distress,” Moody's said in its downgrade statement.
The General Assembly adjourned its latest legislative session on May 31 after failing to pass either of two pension reform measures. The Senate soundly rejected a House proposal while House Speaker Michael Madigan never called a vote on a competing Senate bill. Senate President John Cullerton has said the Senate bill will save about $50 billion over the next 30 years while Senate Republican leader Christine Radogno said the House bill would save about $188 billion.
Earlier this week, Fitch Ratings cut the ratings on the state's general obligation bonds to A- from A, citing legislative inaction.
“Time and time again, failure to act by deadlines has resulted in the bond rating agencies lowering our credit rating, which hurts our economy, wastes taxpayer money and shortchanges the education of our children,” Mr. Quinn said in the news release.