SUBSCRIBE to Capitol Fax      Advertise Here      Mobile Version     Exclusive Subscriber Content     Updated Posts    Contact
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x2 *** State delays bond sale

Wednesday, Jan 30, 2013

* Uh-oh


*** UPDATE *** Full statement from the governor’s office…

The state of Illinois has delayed Wednesday’s scheduled bond sale. Our conversations with potential bidders lead us to believe the market is unsettled because of recent actions and comments by the bond rating agencies. We plan to schedule a new bond sale after the markets have had time to digest the news.

*** UPDATE 2 *** Leader Cross…

“The administration’s decision to pull the $500 million bond sale today is a clear indication that officials were concerned that we might pay too much in interest, in large part due to our awful credit rating. Our failure to pass meaningful pension reform, to pay down our large backlog of bills and to live within our means is contributing to this uncertainty in the markets for us. We stand ready to address these issues today–so that we are not forced to pay unnecessarily high interest rates.”

- Posted by Rich Miller        


22 Comments
  1. - Anonymous - Wednesday, Jan 30, 13 @ 10:01 am:

    uh-oh is right. but is this a market response or a Quinn ploy. can’t. say I’m certain but it ought to send chills thrunthe GA


  2. - Anon. - Wednesday, Jan 30, 13 @ 10:08 am:

    Connect the dots La la la la laa (apologies to Pee-Wee). Credit rating is poor because of pension crisis. Pension payments not made because of…”After a six-month trial, a federal jury convicted Ryan in 2006 of steering millions of dollars in state business to lobbyists and friends in return for vacations, gifts and other benefits to Ryan and his family.” - Chicago Tribune.

    “He’s suffered terribly”. - Jim Thompson


  3. - Norseman - Wednesday, Jan 30, 13 @ 10:10 am:

    Without more information, I’d put my money on ploy. I look forward to reading Word’s insightful comment on this development.


  4. - Mr. Grassroots - Wednesday, Jan 30, 13 @ 10:20 am:

    Yes. of course a ploy, in a sense. But isn’t this necessary on Gov. Quinn’s part since he cannot seem to get the attention of lawmakers, including standing on his head. Is the real ploy Madigan holding things up in the House? Is not the real ploy on the part of the Republicans not to at least discuss the property tax subsidy supplied by the state for everywhere but the city of Chicago? Every day this thing is delayed is costing the state money. Every day another state program must be cut to keep up the pension payments. Why oh why has there been a delay? And I don’t doubt it is a very tough situation.

    So a ploy, yes, it is a ploy. But a good ploy for really good reasons.

    What’s a Governor to do?


  5. - walkinfool - Wednesday, Jan 30, 13 @ 10:24 am:

    If a ploy, it’s a good one.


  6. - Robert the Bruce - Wednesday, Jan 30, 13 @ 10:38 am:

    It still could be a ploy, but more likely it is simply advice from underwriters to delay for a bit. Once the sale goes through, hopefully a reporter will ask what the difference is between this bond sale’s interest rate and the last bond sale’s interest rate.


  7. - Captain Illini - Wednesday, Jan 30, 13 @ 10:38 am:

    The fact is that if the state went ahead with the bond sale, all would be gobbled up regardless of our rating…so the ploy is trying to hide that fact.


  8. - Steve Bartin - Wednesday, Jan 30, 13 @ 10:38 am:

    The demand for loaning money to Illinois isn’t what it used to be. Just a reminder.


  9. - Anonymous - Wednesday, Jan 30, 13 @ 10:39 am:

    Sorry. Seems like teh Anons’ posting may be on the wrong thread?


  10. - phocion - Wednesday, Jan 30, 13 @ 10:47 am:

    What were the bond proceeds designated for?


  11. - Anyone Remember? - Wednesday, Jan 30, 13 @ 10:48 am:

    Ploy. Unless bond funded work grinds to a halt, the sale is not necessary at this time. In a perfect world, bonds are sold to provide the necessary cash. If there are no bonds sold, there is no cash.


  12. - cassandra - Wednesday, Jan 30, 13 @ 10:48 am:

    A little crisis-mongering here? Typical of the Quinn admin. It’s almost spring, time for sky is falling rhetoric, perhaps more than usual because of the 2014 primary, a nanosecond away in political time.

    Middle class taxpayers, and especially middle class state retirees, better hang on to their wallets. Despite their doomsday rhetoric about the vanishing middle class. the Democrats seem awfully anxious to get into middle class wallets, the attack on the COLA being a prime (and rather sneaky) example. Most people don’t realize when making their financial calculations, how destructive inflation is to a budget. And neither party wants us to figure it out.


  13. - iThink - Wednesday, Jan 30, 13 @ 10:49 am:

    ====discuss the property tax subsidy supplied by the state for everywhere but the city of Chicago===

    I would double check the money supplied per student by the state in Chicago compared to everywhere else before you make such statements. While it is true Chicago pays their teacher pension system directly, they get a much higher payment from the state to make that happen. The collar suburban districts get much less funding from the state.

    If this cost shift happens, the state-aid formula needs to be revisited and normed on a per student cost basis - it’s the only way to be fair to all tax payers.


  14. - Demoralized - Wednesday, Jan 30, 13 @ 10:51 am:

    @Anyone:

    Bonds aren’t sold just for the heck of it. There is always some lead time as far as when the cash is needed but the sale is always done because the cash is needed.


  15. - Ahoy! - Wednesday, Jan 30, 13 @ 10:56 am:

    Ploy or not, at least it’s very believable. It seems to be a long time in the making; the State has taken no action the past two years in dealing with its largest budget problem. People (and I’m sure the bond markets as well) are losing faith in the Illinois government to solve the problem.


  16. - Robert the Bruce - Wednesday, Jan 30, 13 @ 10:59 am:

    Whenever the state issues more debt, the reactions on both side are extreme

    a) OMG, the state is going bankrupt! Nobody will buy our bonds!

    b) Nothing to worry about here; investors will still buy up the state’s debt.

    The truth is somewhere in between those extreme viewpoints. The state’s debt will sell, but at higher interest rates than other states pay, causing the state to throw away more money than it would if there had been pension reform progress. The question is how much more money.


  17. - Cook County Commoner - Wednesday, Jan 30, 13 @ 11:05 am:

    “We plan to schedule a new bond sale after the markets have had time to digest the news.”

    Possible Translation: We thought the markets would overlook the most recent Illinois debt downgrade and state and local governments’ unwillingness to implement serious government employee pension and healtcare changes and the mounting unpaid bills held by the state. We were wrong. The interest rate the bond buyers would likely demand would raise howls from the opposition. Accordingly, we need time to “work with” the large institutional buyers to see if there is anything we “can do for them” (wink, nod) in order to get a lower rate and hopefully be able to say to voters: “Forget the bond rating agencies. Buyers still love our paper.”


  18. - Anyone Remember? - Wednesday, Jan 30, 13 @ 11:06 am:

    iThink

    Technically, Chicago does NOT make the pension payment. Eric Zorn busted that one last July.

    http://blogs.chicagotribune.com/news_columnists_ezorn/2012/07/pension.html


  19. - Anyone Remember? - Wednesday, Jan 30, 13 @ 11:08 am:

    Demoralized

    There have been limits on how far in advance bonds can be sold, related to the tax exempt interest.


  20. - dave - Wednesday, Jan 30, 13 @ 1:01 pm:

    **Cross: “We stand ready to address these issues today”**

    Funny, because Cross and the House Republicans have been utterly unable to put enough votes on any pension bill. And his blatant refusal to support the cost-shift, which is a) good public policy, and b) probably the only constitutional change on the table, says a helluva’ lot about Cross’s true desire to solve the problem.


  21. - wordslinger - Wednesday, Jan 30, 13 @ 2:50 pm:

    –The interest rate the bond buyers would likely demand would raise howls from the opposition. Accordingly, we need time to “work with” the large institutional buyers to see if there is anything we “can do for them” (wink, nod)–

    It’s a competitive bid, not a negotiated sale. If anyone would be inclined to participate in any “winking, or nodding” to save the state a few bucks, I would the weigh the personal upsides/downsides to that.

    I don’t see any personal upsides. The downsides are severe.


  22. - Formerly Known As... - Wednesday, Jan 30, 13 @ 3:39 pm:

    === Funny, because Cross and the House Republicans ===

    Ah yes, if only the Dems had a few more seats. It would all be different then.


Sorry, comments for this post are now closed.


* A missed revenue opportunity
* Caption contest!
* Union-sponsored poll shows support for labor agenda
* A good way and a bad way
* The next target
* Question of the day
* Sam Zell quadruples wife's contribution
* SUBSCRIBERS ONLY - Fundraiser/event list (Use last week's password)
* Cleaning up part of the CoD mess
* Today's number: $42,000
* Anti Israeli boycott bill moves to the House
* Out of state biz journalists peeved at Rauner
* *** UPDATED x1 *** Your daily "right to work" roundup
* Redistricting effort to reboot this week
* Having it both ways
* Why isn't Speaker Madigan voting on bills?
* Yesterday's blog posts

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............

...............


Search This Blog...

Search the 98th General Assembly By Bill Number
(example: HB0001)

Search the 98th General Assembly By Keyword

          
        * Facebook Messenger now supports video calling in certain countries
        * OPPO’s bezel-less tech explained; curved glass, refraction in play
        * SwiftKey Debuts “Clarity,” An Experimental Keyboard Featuring Multi-Word Autocorrect
        * Samsung Moves Away from ARM Chips in Favor of Custom Exynos M1 Chipsets
        * Apple Watch gets dunked and drilled, but comes out strong in durability tests
        * Apple Watch unboxing & initial set-up (Video)
        * Qualcomm to help market Chinese smartphones globally

        * Microsoft Phones Infringe Patents, ITC Judge Rules
        * This Video Shows Off the Three Best Ways to Roll Up Your Sleeves
        * Call Of Duty: Black Ops 3 Open Beta Confirmed
        * Rent An R8 In San Francisco Directly From Audi
        * Apple Watch Shatters When Dropped, Impact Resistant Much?
        * Minecraft Players Can Now Choose To Play As A Girl
        * Obama’s Unclassified Emails Hacked?

        * Podcast: White Sox Fighting Back
        * White Sox Minor League Update: April 26 - May 2
        * Sox grab lead with five-run sixth, then hold off Royals
        * Melky's leaping grab at wall helps Sox edge Royals
        * Robertson earns win, save in odd day for reliever
        * With two wins in one day, Sox feel they're turning corner
        * White Sox 5, Royals 3: David Robertson bookends productive day

        ...............


        Main Menu
        Home
        Illinois
        YouTube
        Pundit rankings
        Obama
        Subscriber Content
        Durbin
        Burris
        Blagojevich Trial
        Advertising
        Updated Posts
        Polls

        Archives
        April 2015
        March 2015
        February 2015
        January 2015
        December 2014
        November 2014
        October 2014
        September 2014
        August 2014
        July 2014
        June 2014
        May 2014
        April 2014
        March 2014
        February 2014
        January 2014
        December 2013
        November 2013
        October 2013
        September 2013
        August 2013
        July 2013
        June 2013
        May 2013
        April 2013
        March 2013
        February 2013
        January 2013
        December 2012
        November 2012
        October 2012
        September 2012
        August 2012
        July 2012
        June 2012
        May 2012
        April 2012
        March 2012
        February 2012
        January 2012
        December 2011
        November 2011
        October 2011
        September 2011
        August 2011
        July 2011
        June 2011
        May 2011
        April 2011
        March 2011
        February 2011
        January 2011
        December 2010
        November 2010
        October 2010
        September 2010
        August 2010
        July 2010
        June 2010
        May 2010
        April 2010
        March 2010
        February 2010
        January 2010
        December 2009
        November 2009
        October 2009
        September 2009
        August 2009
        July 2009
        June 2009
        May 2009
        April 2009
        March 2009
        February 2009
        January 2009
        December 2008
        November 2008
        October 2008
        September 2008
        August 2008
        July 2008
        June 2008
        May 2008
        April 2008
        March 2008
        February 2008
        January 2008
        December 2007
        November 2007
        October 2007
        September 2007
        August 2007
        July 2007
        June 2007
        May 2007
        April 2007
        March 2007
        February 2007
        January 2007
        December 2006
        November 2006
        October 2006
        September 2006
        August 2006
        July 2006
        June 2006
        May 2006
        April 2006
        March 2006
        February 2006
        January 2006
        December 2005
        April 2005
        March 2005
        February 2005
        January 2005
        December 2004
        November 2004
        October 2004

        Blog*Spot Archives
        November 2005
        October 2005
        September 2005
        August 2005
        July 2005
        June 2005
        May 2005

        Syndication

        RSS Feed 2.0
        Comments RSS 2.0
        WordPress

        Loading


        * Anti Israeli boycott bill moves to the House..
        * Why isn’t Speaker Madigan voting on bills?..
        * Illinois budget cuts to affect students, sickle.....
        * Zell gives $4 million to Rauner's pro-business PAC..
        * How exactly is privatization better, Mr. Governor?..
        * Sam Zell donates $4 million to Gov. Rauner..
        * Suburban Chicago mayors protest proposed budget.....
        * Lupus Walk set for May 9 at QJHS..
        * Sam Zell gives $4 million to Rauner-allied supe.....
        * Legislators on Budget Cuts..


        * Suburban Chicago mayors protest proposed budget cuts
        * WIU football player to be bone marrow donor for infant
        * Illinois budget cuts to affect students, sickle cell center
        * New central Illinois elementary school has 10 safe rooms
        * Madigan continues push for campus sex assault protection
        * Sam Zell gives $4M to Illinois Gov. Rauner's political fund
        * Work to start later this year on Illinois fertilizer plant
        * Illinois company wants to prepare schools for shooters
        * 82-year-old woman dies in southern Illinois house fire
        * Trial to begin in 2010 slayings of Chicago officer, official

        * Suburban Chicago mayors protest proposed budget cuts
        * Illinois budget cuts to affect students, sickle cell center
        * Billionaire Sam Zell gives $4M to Rauner's political fund
        * Illinois GOP targets political hiring; Democrats wary
        * Crib bumper bills bump heads in General Assembly
        * New state school superintendent says funding fix could take years
        * Statehouse Insider: Rauner's story of unions stifling innovation "sounds like pure fiction," union says
        * New schools chief says funding fix could take years
        * State budget fix includes $106M in Medicaid cuts
        * House passes bill to create high-speed rail oversight panel

        * Obscure federal agency with a lot of dough comes calling in Chicago
        * Boeing CEO: Losing Ex-Im Bank could cost U.S. manufacturing jobs
        * Paul Johnson, bank builder and bon vivant, dies at 83
        * Zell gives $4 million to Rauner's pro-business PAC
        * DLA Piper no longer the country's largest law firm


          * Lure of $20,000 reward led to charges in cop killing, defense says
          * Two wounded in West Pullman neighborhood shooting
          * Police: Girl, 12, bitten by pit bull on Northwest Side
          * Woodstock dad charged after baby found to have skull fracture: police
          * Ex-WTHS band booster treasurer pleads guilty to stealing $26,000
          * Police: Knife-wielding man tried to rob Rogers Park eatery
          * Cops: Woman accused of burglarizing Roscoe Village school
          * Extra-alarm fire extinguished in Humboldt Park
          * No bones about it, leashed dogs will be allowed on The 606
          * Researchers warn of binge drinking by teens at Lollapalooza


          * More than 1,000 local nurses plan a strike
          * Changes in taxi industry leave cab owners underwater
          * More than 3,700 dead in Nepal as earthquake's toll rises
          * Trial to begin in 2010 slayings of Chicago officer, official
          * Illinois prisons chief says union contracts causing problems
          * Sheriff Dart to investigate unlicensed rehab centers
          * Rauner's first 100 days: The fight between unions and Rauner
          * Large provider of Chicago mental health services, C4, is closing
          * After detective’s acquittal in fatal shooting, prosecutors face criticism
          * Mayor Emanuel taps CTA director to be chief of staff


          * Marc Levine: Rauner has the solution for Illinois' pension problem
          * Suburban Chicago mayors protest proposed budget cuts
          * Illinois budget cuts to affect students, sickle cell center
          * Billionaire Sam Zell gives $4M to Rauner's political fund
          * Illinois GOP targets political hiring; Democrats wary
          * Crib bumper bills bump heads in General Assembly
          * New state school superintendent says funding fix could take years
          * Bernard Schoenburg: Downstate representation gone from Illinois Commerce Commission
          * Statehouse Insider: Rauner's story of unions stifling innovation "sounds like pure fiction," union says
          * Statehouse Insider: Rauner's story of unions stifling innovation "sounds like pure fiction," union says


          * Christopher mourns former police chief
          * 3 suspected of stealing boat, truck, trailer caught near Rock River
          * Woman unfit for trial a second time in bomb threat case
          * Cahokia man spat in officer’s face, charged with felony
          * Street closures listing
          * United Airlines CEO's 2014 compensation tops $11.3 million
          * Prosecutor won't seek third term
          * Central Illinois Business 4-25-15
          * Illinois budget cuts to affect students, sickle cell center
          * State police continue investigation into officer-involved shooting


          * Proposal would give Illinois' terminally ill right to try unapproved drugs
          * Naperville teen injured in 20-foot fall at Starved Rock
          * Harper company welcomes wheelchair-bound dancer into fold
          * This week's girls soccer Top 20
          * Area dentists team up to give Iraq War veteran a reason to smile

          * Legislative Wrangling Over Data Security a...
          * Dold to replace Schock on Ways and Means C...
          * Dold gets prized seat on House Ways and Me...
          * Bustos leads bipartisan, bicameral plan to...
          * Pallone Honored for Efforts to Address Hea...
          * Letter: Referendum a step toward reclaimin...
          * New member of ways and means appointed; ta...
          * Bost is impressed by McKendree intern
          * Reps. Lipinski and Hultgren introduced sim...
          * Biden addresses male role in ending sexual...

          * Senators react to CNN report, call for inc......
          * Foes of Iran deal take aim in Senate...
          * For-Profit College Closure Could Cost Taxp......
          * Senators call for increased wages for workers...
          * Cuba beyond the embargo: Ag coalition work......

          * Sen. Kirk Pushes For Funds To Help Ground ......
          * Daily Kickoff: Rand to meet with Jewish le......

          * High rises’ high costs, part 2: Land-efficient, but not floorspace-efficient
          * Man buys $140 in Roses from subway vendor in touching video
          * Billionaire Sam Zell buys into Rauner's Turnaround agenda
          * Arn: Hillary's Coronation Will Be Ruined, Again
          * Ted Cruz: "There is a liberal fascism going after Christian believers"
          * The [Monday] Papers
          * I got a nice note from my colleague Curtis House. “You can’t represent sitting on your assets.”
          * Change the world.
          * Jim DeMint's Message on The March for Marriage
          * Illinois State Senator spent $50k from campaign coffers on non-campaign travel


          * Illinois EPA and Boy Scouts of America Partner for Annual 20-Mile Lincoln Trail Hike - Lincoln Pilgrimage honors Abraham Lincoln’s 20-mile trek; Scouts pick-up litter along the scenic trail
          * IDPH Moves to Eliminate Meningococcal Meningitis - New Vaccination Requirements for Adolescents
          * YOUR ACTIONS MATTER! kicks off statewide as preparations begin for new server training law
          * Emergency Management Officials Launch Weather Alert Radio Contest - ‘Weather Alert Radios Save Lives’ contest promotes awareness; 100 radios to be awarded
          * IDOT Launches Statewide Listening Tour to Discuss Illinois Infrastructure Needs, Priorities





              Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller