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| Economy |
| Illinois Borrows Money to Pay Pensions |
| 2010-07-14 |
| Just two weeks after Illinois Gov. Pat Quinn chopped $1.4 billion from the budget, the cash-strapped state is turning to the debt markets to get it through the fiscal year. On Wednesday, it plans to raise $900 million through Build America Bonds to fund its first capital program in more than a decade. The money will be used to improve roads, bridges and schools. And this debt issuance is only the beginning. The state plans to raise $1.3 billion in short-term notes next week and $1.4 billion in debt related to tobacco settlement funds in November. And, the state plans to turn to the debt markets to fund $3.7 billion in pension obligations in December, if the state legislature approves. The state already sold $2.4 billion in pension notes in January. States don't traditionally fund their pensions with debt, but the practice frees up other money that can be used for operations, said John Sinsheimer, Illinois' director of capital markets. |
| Posted by:GolfBravoUSMC |
| #10 Just two weeks after Illinois Gov. Pat Quinn chopped $1.4 billion from the budget, They did cut. Quite a bit, in fact. But sadly, not nearly enough. |
| Posted by: trailing wife 2010-07-14 21:25 |
| #9 #4: The thought of SPENDING LESS hasn't even crossed their minds yet, has it? Posted by: bigjim-CA| The idea (Spending less) and the reality (politician) are mutually incompatible, especially with politicians in the Democratic Party, or in states such as Illinois, New York, Massachusetts, and California. The only way to get them to change is to grab a few dozen of them and make them guests of honor at an old-fashioned necktie party. Nothing short of their own survival will force them to change. It's a shame our nation has come to this, but we're there, and maybe too far in for any change that doesn't require large numbers of (human) sacrifices. |
| Posted by: Old Patriot 2010-07-14 19:28 |
| #8 The Illinois constitution can't be amended? |
| Posted by: Procopius2k 2010-07-14 18:00 |
| #7 I think our public pensions are guaranteed by the state constitution, so we can't even cut them. Does that mean states are required to sell off everything to pay for them? Seems to me that there ought to be some way out. This is insane what they have to do. I don't think the laws should be a suicide pact. |
| Posted by: gorb 2010-07-14 14:01 |
| #6 Iowa and Indiana aren't doing too poorly, Steve (if you're looking for a 'change of venue'). |
| Posted by: Mullah Richard 2010-07-14 13:52 |
| #5 Blago did this once already and the interest payments are killing us. Agreed, this won't end well. I think our public pensions are guaranteed by the state constitution, so we can't even cut them. |
| Posted by: Steve White 2010-07-14 13:01 |
| #4 The thought of SPENDING LESS hasn't even crossed their minds yet, has it? |
| Posted by: bigjim-CA 2010-07-14 12:58 |
| #3 "This Especially for the Illinois taxpayers. |
| Posted by: Mullah Richard 2010-07-14 11:36 |
| #2 So how do they propose to pay off the debt? The king has more moves on the chessboard, but the game is already over. Greece across the Pond. |
| Posted by: Alaska Paul 2010-07-14 11:30 |
| #1 This can't end well. |
| Posted by: Bright Pebbles 2010-07-14 10:46 |