Rauner aims to take bite out of debt via $6 billion in bonds
Gov. Bruce Rauner will try to pay down some of Illinois' overwhelming pile of debt by issuing $6 billion in bonds, according to a press release.
“Even with a permanent income tax increase costing the average Illinois household more than $1,000 a year, the budget is more than $1 billion out of balance and is still growing the unpaid backlog,” Rauner said in a statement. “We’re choosing to exercise borrowing authority because it’s better to have Wall Street carry our debt than Main Street Illinois.”
According to an amendment of the General Obligation Bond Act included in the budget package passed in July, the state can issue up to $6 billion in Income Tax Proceed bonds. The bonds must be issued before Dec. 31, 2017, and go toward debt incurred before July 1. They will be 12-year bonds with level principal payments each year.
“Illinois cannot afford to repeat the mistakes of the past,” Rauner said in his statement. “We have to work together to truly balance the budget. We must protect residents from further tax hikes while ensuring the most vulnerable receive the services they need. Building upon the success of the recent bipartisan education funding law, we can find common ground for real solutions.”