If I get this right it says the State is borrowing $3.4 billion dollars to repay a fund (pension system) so they can borrow money from it. Is this how ou run your household? You would borrow money to pay of a credit card so you can use the credit card. Do you see the problem here?
State borrows $3.4 billion to ease cash crunch
Posted by Monique Garcia at 8:50 p.m.
The state completed the sale of $3.4 billion in bonds Thursday aimed at easing a cash crunch.
Most of the money will be poured into the state’s pension systems, which will free up about $843 million to help pay down the backlog of bills owed to universities, grade schools and medical providers, according to David Vaught, the budget director for Gov. Pat Quinn.
That figure is a small portion of what Comptroller Dan Hynes said is a $5.1 billion backlog, and it’s unclear how much will be funneled to the University of Illinois. The state’s flagship school announced furloughs earlier this week after administrators said the state owes the university about $436 million.
Quinn promised universities would see some money from this week’s round of borrowing, though Vaught said it’s up to the comptroller to decide how the money is distributed.
Hynes and Quinn are both seeking the Democratic nomination for governor in next month’s primary election.
Posted at 08:59:22 PM in 2010 Illinois Governor's race, Governor
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http://newsblogs.chicagotribune.com/clout_st/2010/01/state-borrows-34-billion-to-ease-cash-crunch.html
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