Illinois fiscal reputation costs $80 million more - Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-

Illinois fiscal reputation costs $80 million more

Posted:

SPRINGFIELD, Ill. (AP) -- 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.

 

   ------

 

Online: http://bit.ly/1ekij7A

Most Popular

Stories
Videos
loading...
  • Current Events

Powered by WorldNow

904 South Side Drive
Decatur, IL 62521
Primary Phone: 217-424-2500
Primary Email: news@wandtv.com

All content © Copyright 2000 - 2014, WorldNow and WAND. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms