CHICAGO (AP) — A University of Illinois analysis says the state received about $53 million less in a recent bond sale than it could have because of Illinois’ poor financial shape.
The university’s Institute of Government and Public Affairs released the analysis Tuesday of Illinois’ $480 million general obligation bond sale. It found Illinois received $53 million less in Jan. 14’s sale compared with bonds issued in 2006, when Illinois’ credit rating was better.
The study found estimated losses could grow to over $400 million annually if fiscal troubles continue.
Illinois has massive pension debt and lawmakers are deadlocked over a budget.
Gov. Bruce Rauner defended the sale, touting a lower interest rate than previously. He says the bond sale was appropriate because money will be used for capital improvements, not daily operations.