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Experts Question Borrowing Money for Ill. Bills
SPRINGFIELD, Ill. (AP) -- Experts say borrowing money to pay overdue bills might be the fair thing for Illinois to do, but it wouldn't necessarily be the smart thing.

Illinois owes businesses and community groups that do work for the state. Gov. Pat Quinn wants to pay them by borrowing $8.7 billion and then paying off the new debt over 14 years.

Brian Battle of Performance Trust Capital Partners says the moral thing would be paying what the state owes.

But it would cost hundreds of millions in interest each year and could further erode the state's credit rating. It also might reduce pressure for a long-term budget solution.

David Merriman of the University of Illinois says borrowing would only make sense as part of a broad plan to fix the state budget.

(Copyright 2011 by The Associated Press. All Rights Reserved.)
02 20 11 by Newsroom
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