Illinois taxpayers got an $8 million taste during the week of just how expensive poor fiscal management can be.

The state took out a short-term loan in mid-July and – even though federal treasury rates have been cut nearly in half – the state will end up paying about $8 million more in interest when compared to a similar loan taken out last year.

The key difference is that Illinois has seen its credit rating plummet. One major credit rating agency ranks Illinois as tied for worst in the nation with California, while two other agencies have Illinois just one notch above California. The state has had eight credit downgrades since impeached Governor Rod Blagojevich left government in January 2009.

" />
Skip to Main Content

News Details