Financial Services

Illinois Credit Upgrade + New Jersey Still Ranked Worst Sinkhole State

5d ago · 6:18

Truth in Accounting data shows New Jersey and Illinois carry among the worst taxpayer burdens in the country even as bond rating agencies raised both states' credit ratings this week, while Minnesota kept its top-tier AAA rating for a fifth consecutive year. Minnesota received AAA ratings from Moody's, S&P and Fitch, one of 14 states with the highest possible credit rating, reflecting a low risk of default on state debt. Illinois saw its bond ratings raised by both S&P and Moody's this week, its highest marks in more than a decade, with agencies citing years of on-time balanced budgets and tighter fiscal management, though it remains the lowest-rated state in the country. New Jersey's general obligation rating was separately raised by Kroll Bond Rating Agency, citing progress on pension payments. Government transparency group Truth in Accounting says credit ratings only measure a government's ability to repay bondholders, not its total debt, tax collection health or future tax burden. By that group's own measure, Minnesota holds a $7,100 per-taxpayer surplus and a B grade, while Illinois carries a $38,800 taxpayer burden and an F grade, and New Jersey carries the worst burden in the country at $44,500 per taxpayer with an F grade of its own.