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

Police Impersonators Tie Up, Gag Victim South of Springfield

illinois state police

State Police are trying to find another round of police impersonators.

in Local

108,000 Illinoisans Eligible for Insurance Rebates

insurance

The federal government says more than 108,000 Illinois health insurance customers will benefit from more than $8 million in refunds.

in Local

Mine Simulator Under Construction in Harrisburg

mine

Coal mining is still a big deal in Illinois, and Terry Bruce says there's really no end in sight.

in Local

Quinn Signs Flood Fighting Measure

IEPA-logo

A newly signed law is aimed at fighting the effects of flooding around Illinois.

in Local

Guilty Plea in Drug Induced Homicide

scales justice

Springfield man faces 30 years in drug death