Bond sale costs Illinois an extra $130 million due to ratings downgrades

By WEEK Reporter

Bond sale costs Illinois an extra $130 million due to ratings downgrades

June 27, 2013 Updated Jun 27, 2013 at 9:54 AM CDT

CHICAGO, Ill. -- The state of Illinois sold $1.3 billion in General Obligation Bonds Wednesday to fund capital projects around the state.

According to Quinn, the bond sale was necessary due to a lack of an agreement on pensions. He says a lack of pension reform has already forced $2 billion in education cuts and $3 billion in social service cuts across Illinois.

That lack of pension reform will also cost the state an additional $130 million over the life of the bonds thanks to ratings downgrades by two major ratings agencies.

"As I’ve warned repeatedly, this is an emergency," Quinn said. "That’s why the General Assembly needs to get the job done by July 9 so we can stop the bleeding, prevent future downgrades and jump-start Illinois’ economy.”

Quinn says that the money will fund road repairs all over the state; new Metra facilities; new schools, much-needed repairs of existing schools and new buildings on state university campuses, among other projects.

The money will also fund road and rail projects in Galesburg and Bloomington.

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