Jim Sinclair’s Commentary
Illinois is akin to a trader who would seek a loan to meet a margin call. The loans is not going to do any good unless the underlying problem is fixed.
The Formula is still in charge everywhere and nothing is fixed. I would not lend those funds at 20%
Quinn Weighs $15 Billion Bond-Sale `Option’ to Close Illinois Budget Gap
By Tim Jones and Darrell Preston – Dec 28, 2010 1:44 PM PT
Illinois Governor Pat Quinn is considering borrowing $15 billion to pay overdue bills and balance the biggest budget deficit in the state’s history.
The plan is among a range of proposals that Quinn is discussing with state lawmakers as they prepare to return to Springfield Jan. 3 for the final days of the legislative session, said Kelly Kraft, a Quinn spokeswoman.
Illinois faces a budget shortfall of at least $13 billion because of declining tax revenue. The state Senate in November didn’t have the votes to approve the borrowing of $3.7 billion to cover pension-fund contributions for the fiscal year that ends June 30.
“We are working on a variety of options,” Kraft said in an interview today. “Nothing has been finalized. We’re talking with legislators on both sides of the aisle. Our goal is to stabilize the budget.”
Senate President John Cullerton and House Speaker Michael Madigan declined through spokesmen to say if the bond sale would draw enough support to pass.
