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

Springfield-Area Historic Site Visits Mostly Down

old_state_capitol_3

Most of the historic sites in the Springfield area have seen a decline in attendance despite last year's increase in tourism statewide.

in Local

Agreement Reached on Schock Contempt Charges

schock

Schock and his attorneys have reached a temporary resolution with federal prosecutors on civil contempt accusations.

in Local

Electricity on the Open Market

meter electric

CUB has comparison tool online

in Local

DCFS Answers Criticism

DCFS

Poor record-keeping, no training about runaways

in Local

Schock in Court

schock

His lawyers say they want to protect his constitutional rights