News

Illinois Fiscal Reputation Costs $80 Million More

Illinois Fiscal Reputation Costs $80 Million More

Photo: Newsradio WTAX

A study contends that Illinois wears a “scarlet letter” when it borrows money — which has cost at least $80 million over a five-year period.

The review by the University of Illinois Institute of Government and Public Affairs estimated the state’s “risk premium” in selling bonds to raise money. This cost is on top of additional interest charges paid because of Illinois’ worst-in-the-nation credit rating.

The study found that on bonds sold from 2005 to 2010, bond-buyers demanded the premium based only on the state’s fiscal reputation. It notes the Prairie State’s credit rating has fallen further since 2010.

Authors of the study collected data on all state general obligation bonds sold during the period and calculated interest charges above the extra paid based on credit rating.

Recent Headlines

in Local

Southern Illinois Town Investigating Suspicious Fires

fire

Historical building gutted by fire Friday night.

in Local

Helpful Hints for Healthful Superbowl Snacking

Veggie Tray

MMC Registered Dietician Christina Rollins has ideas to slim down Superbowl snacks.

in Local

Accountability of Charter Schools in Illinois Raises Questions

School Clip Art

A new report alleges fraud up to $27 million.

in Local

Illinois State Police Urge Caution on Roads

winter travel

Illinois State Police say it's best to slow down and leave plenty of room between vehicles on the roads today.

in Local

Illinois Basketball Museum to Open in Pontiac

basketball

A museum dedicated to Illinois basketball glory will open to fans by 2016.