Gov. Pat Quinn Plans to Borrow Money to Pay Debts
SPRINGFIELD, Ill. (IRN) — Gov. Pat Quinn says he backs a plan to borrow money to pay the state’s bills.
The state’s plan involves creating general obligation restructuring bonds, which would allow the state to pay off its current obligations to health and human service providers and schools.
Quinn says the bonds would ultimately save the state money on interest.
“We owe in some cases 12 percent interest on the debt that Illinois over the last 28 years has accumulated, debt where it hasn’t paid its bills on time,” Quinn said. “I think that anybody who has common sense when it comes to public finance would see it’s much better to borrow money at a lower interest rate, 4 or 5 percent than paying 12 percent.”
Illinois has over $8 billion in unpaid bills.
On gathering enough votes to see the measure pass, Quinn acknowledges it will take bipartisan support in the House. He wants to see the measure passed
Reported by Nick Gale
Copyright 2011 Illinois Radio Network