Cost of the Crisis: An Analysis of the Additional Bond Costs Paid by the State of Illinois Due to the State’s Ongoing Fiscal Crisis
August 30, 2010
This issue brief provides a comparative analysis of the cost of the $9.6 billion in bonds the State of Illinois issued between September 2009 and July 2010. The report estimates that Illinois government may pay as much as $551.3 million extra for its borrowing as a consequence of its deteriorating bond rating.
The report found that the extra borrowing cost will continue to stress future budgets with increased debt service costs and a higher cost of government for the taxpayers of Illinois.