Illinois Gov. Pat Quinn just announced a $900 million bond offering to fund infrastructure and schools.
What’s scary is that this last-minute offering is just another step along Illinois’s massive debt binge.
And this debt issuance is only the beginning. The state plans to raise $1.3 billion in short-term notes next week and $1.4 billion in debt related to tobacco settlement funds in November.
And, the state plans to turn to the debt markets to fund $3.7 billion in pension obligations in December, if the state legislature approves. The state already sold $2.4 billion in pension notes in January.
That’s in addition to $1.4 billion in budget cuts two weeks ago.
In short, Illinois has reclaimed the title of The Next Greece. (Even Le Monde says ILLINOIS est l’equivalent de la GREECE dans la “zone dollar.)