This will not end well. Illinois can’t even pass a budget.

Illinois Policy reports:

Moody’s Downgrades 7 Illinois Universities, 5 Are Junk

Illinois public university’s finances are suffering due to the state’s current budget impasse. The impasse has exposed the poor financial decisions made by administrators at many higher education institutions.

The nation’s credit rating agencies are taking note.

Moody’s Investors Service announced sweeping credit downgrades for seven Illinois universities on June 9. Five of those seven – Southern Illinois University, Northern Illinois University, Governors State University, Northeastern Illinois University and Eastern Illinois University – now have junk credit ratings.

Moody’s downgrades come less than a month after S&P’s own mass downgrade of six universities in April.

Everybody wants to blame the downgrades on the state’s current budget impasse. The stalemate of nearly two years has led to cuts in state appropriations to Illinois universities. But the universities’ financial difficulties started before the state’s budget gridlock and are largely of their own making. Illinois colleges and universities have long overspent on bloated bureaucracies and expensive compensation and benefits, prioritizing administrators over students.

For years, university and college officials across the state have hiked tuition to pay for administrative hiring sprees, generous executive compensation and out-of-control pensions. Their spending priorities distorted university finances long before the budget impasse began.