Trickle-down credit downgrades hit IL Universities.

Moody’s has downgraded the credit ratings of 9 IL universities. Friday’s downgrades affect the University of Illinois, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Southern Illinois University and Western Illinois University. Only Northern Illinois University was able to maintain its rating.

The downgrades reflect the on-going fallout from IL corrupt pension systems with their $100 (Madigan’s number) to $200 billion (Moody’s number) unfunded liability staring IL taxpayers in the face.  According to Moody’s universities are going to either have to pay some portion of their pension cost (which they should have been doing since day one) or they face less funds from the state as it struggles to pay for the pensions. Either way the universities will have much less money to spend and therefore less money to pay for borrowings.

Currently universities have about $2.56 billion in bonds outstanding about 70% of which is tied to U of I.

Wonder why the U’s don’t want to pay for the pensions emanating from their ridiculous salary policy? Because they would be paying for 3 pensions over $400,000, seven pensions over $300,000, 93 pensions over $200,000 and 2,499 pensions over $100.000. Here’s the Top 20:

State University pensions Top 20 as of April 1, 2013
Name School  Annual Pension  Total Paid Out To date
Das Gupta, Tapas University of Illinois – Chicago       439,672         3,432,629
Abraham, Edward University of Illinois – Chicago       427,150         2,398,171
Barmada, Riad University of Illinois – Chicago       409,852         5,029,872
Mafee, Mahmood University of Illinois – Chicago       381,245         2,323,752
Abcarian, Herand University of Illinois – Chicago       348,893         1,438,935
Albrecht, Ronald University of Illinois – Chicago       347,575         1,903,611
Ausman, James University of Illinois – Chicago       319,191         1,545,867
Wilensky, Jacob University of Illinois – Chicago       297,530         2,265,259
Forman, Phillip University of Illinois – Chicago       290,038         2,694,491
Sugar, Joel University of Illinois – Chicago       282,319         2,203,668
Bazzani, Craig University of Illinois – Urbana       273,560         2,557,752
Honig, George University of Illinois – Chicago       271,483         2,204,292
Milner, Joel Northern Illinois University       269,238         1,474,574
Folse, John Southern Illinois University – Carbondale       263,646         2,862,559
Schuler, James University of Illinois – Chicago       261,762         1,840,124
Moss, Gerald University of Illinois – Chicago       258,635         1,766,986
Lopata, Melvin University of Illinois – Chicago       254,665         2,148,055
Rugg, Stephen University of Illinois – Urbana       250,860         1,303,904
Oldham, Greg University of Illinois – Urbana       250,715         1,125,238
Pavel, Dan University of Illinois – Chicago       249,988         1,789,919
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