SPRINGFIELD, ILL. (KMOX) – Illinois Treasurer Mike Frerichs is urging the governor to refinance as much of the state’s debt as possible, and quickly.

Frerichs estimates the state could save $2 million a day on interest payments. Right now the state’s paying 12 percent interest on billions. Frerichs says the state can refinance at least $6 billion of that and could also get $2 billion in federal money to pay down Medicaid bills.

“If you look at other states, they’re significantly below 12 percent, that State of Illinois has a worse credit rating. We would pay a penalty, but it wouldn’t be anywhere near the 12 percent we’re currently paying,” he says.

Frerichs says the governor’s office hasn’t responded to his ideas directly.

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