Illinois Bond Sale Scuttled Because of DowngradesSPRINGFIELD, Ill. (AP) - Illinois officials have delayed borrowing $500 million for construction projects because the pension crisis makes the state's debt more expensive. Abdon Pallasch is spokesman for Gov. Pat Quinn's budget office. He says a bond sale scheduled for Wednesday was postponed after potential bidders warned of an "unsettled" market.
Blame the ongoing quandary over how to reduce a $96 billion deficit in Illinois public-employee pension accounts. Standard & Poor's is the latest credit agency to downgrade the state's credit worthiness because of the pension mess. S & P also gave Illinois a "negative" outlook -- reflecting the Legislature's "poor track record" on solving the pension-liability problem. Pallasch says the bond sale will be rescheduled after markets review the situation. The bond sale was to fund school and transit projects.
See other LocalNews news:Two Traffic Stops in Salem Saturday Lead to Arrests
Kirk Calls For Congressional Hearings Into North Korea Hack
Chicago Mayor's Teenage Son Mugged Near Home
Police Looking For Suspect in Effingham Shooting
Raising Juror Pay, Reducing Juries Gets Mixed Reviews