Illinois' strategy for digging out of debt: taking on more
SPRINGFIELD, Ill. (AP) -- Illinois lawmakers have an ironic strategy for digging out of debt: taking on more of it.
The state recently adopted its first budget in two years. Spending in the meantime has left a $15 billion pile of overdue bills and the nation's lowest credit rating.
One solution in the budget approved over Republican Gov. Bruce Rauner's vetoes is borrowing $6 billion more.
Chicago Democratic Sen. Donne Trotter says late-payment interest obligation on $15 billion owed to vendors is far more expensive than interest on selling bonds.
Alan Schankel is a municipal bond strategist for Janney Capital Markets. He says Illinois must take quick action and there's a market demand for riskier investments.
Rauner's office won't say whether he'll issue the bonds.