7am News, Sports and Obits

Latest WGIL news
Click to play or
Right click and "Save Target As" to download
Click for Galesburg, Illinois Forecast
Home - Cancellations - Community Events - Contact Us - Mornings - News - Obituaries - Pictures - Programs - Special Events Audio - Sports - Weather
State's Budget Borrowing Could Come With High Interest Rates
Illinois' plan to borrow $3.5 billion to help pay for a $26 billion state budget could come with high interest rates.

Wall Street-based Moody's Investors Service says it is reviewing the State of Illinois' general obligation bond ratings to see if they should be downgraded. If downgraded, that would mean any borrowing the state does would come at a higher cost.

Gov. Pat Quinn says he knows "where the rating agencies are coming from," but says he did what was best at the time to keep Illinois afloat by signing the spending plan.

A lowered rating would mean that the $31 billion capital plan would buy less, as more money is diverted to interest on the bonds.

Quinn says he is still hopeful that within a few months lawmakers will realize the need for an income tax increase.

(Illinois Radio Network)
07 17 09 by Newsroom
News management powered by Xpression News

Click here for the WGIL News Archive

Click here for national news

The following provision applies to all visitors (which shall include persons and representatives of legal entities, whether such representatives are persons or digital engines of a kind that crawls, indexes, scrapes, copies, stores or transmits digital content). By accessing this Web site or digital service, you specifically acknowledge and agree that: (i) Associated Press text, photo, graphic, audio and/or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium; (ii) No Associated Press materials nor any portion thereof may be stored in a computer except for personal and non-commercial use; (iii) The Associated Press will not be held liable for any delays, inaccuracies, errors or omissions therefrom or in the transmission or delivery of all or any part thereof or for any damages arising from any of the foregoing; (iv) The Associated Press is an intended third party beneficiary of these terms and conditions and it may exercise all rights and remedies available to it; and (v) The Associated Press reserves the right to audit possible unauthorized commercial use of AP materials or any portion thereof at any time.