Via Crain's Chicago Business: With the gubernatorial election now just seven weeks away, a dour report issued today by Moody’s Investors’ Service underlines just what’s at stake for Illinois and its taxpayers.
The report technically is about the impact of a couple of new laws intended to make it easier for the state to juggle its available cash. But the real news is that, despite a roaring national economy that can’t continue forever, Illinois still is pretty much treading water when it comes to paying off old bills.
Specifically, the report says that after peaking at roughly $17 billion in October 2017, the state’s stack of short-term IOUs to vendors, school districts and others did decline to about $9 billion in November. But that’s only because the state traded short-term debt for long-term bonds, paying $6 billion in bills by issuing that much in general obligation bonds.