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Quinn Wants Borrowing to Fix Budget
(IRN)-Governor Pat Quinn plans to borrow $8.7 billion to pay the state's debts. He used his budget address to defend the proposal saying it is "not new borrowing. Billions of dollars of existing bills will not go away by magic," he said, characterizing the plan as "debt restructuring."

Quinn has to defend this plan against those who say the state is already in enough debt, including Illinois Senate Republicans, who pronounced the plan "dead on arrival" before it even arrived, and who have the power to block it.

Quinn says Illinois pays higher interest rates to vendors than lenders, and pays more for goods and services because the vendors know they won’t get paid for six to eight months. Quinn says the money from the income tax increase stabilizes the operating budget, but it won’t pay off this existing debt backlog.

(Source: Illinois Radio Network)
02 17 11 by Newsroom
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