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.


* Reader comments closed for the weekend
* CUB Poll: 84% Oppose Exelon Bailout - Solar Poll: 81% Oppose Demand Charges
* SUBSCRIBERS ONLY - New cable TV buys and fundraiser calendar
* Question of the day
* *** UPDATED x1 - Friends of the Parks responds *** Lucas pulls plug on museum
* "Dead. Yes, dead."
* Radogno shares some deets on stopgap, blames Chicago for holdup
* Maybe this will convince Democrats to cut a deal?
* Nobody's right if everybody's wrong
* Another way Chicago is behind the times
* More on that Cullerton meeting
* Creating a workaround for new CPS debt?
* Settlement talks in Duckworth case "initiated by the judge"
* Hostage dies
* Close on 6-month stopgap, not there yet on K-12
* 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

  
* You can help stop human trafficking with the TraffickCam app
* iPhone OLED progress, Alcatel Idol 4 retail & more – Pocketnow Daily
* Galaxy Note7 confirmed as device name, Samsung does indeed skip a number
* Incipio will purchase Skullcandy for $177 million
* Okay, we’ve seen this vivo X7 Plus before…
* Windows 10 Mobile also headed for AT&T Lumia 1520
* Google Support app may let Nexuses screen-share for assistance

* The other time the White Sox hit seven homers
* Less than 5 days left to cast your All-Star vote
* White Sox put on power show, but fall to Jays
* White Sox hit 7 HRs in loss, tie MLB record
* Sale sets sights on win No. 13 in series finale
* White Sox put on power show in loss
* Blue Jays 10, White Sox 8: How to hit seven homers and lose

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


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

Archives
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
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


* Blaming Rauner for Illinois' problems defies lo.....
* WIU President tells NAACP lack of state budget .....
* Five reasons why July 1 means more Illinois bud.....
* Our View: End pensions for all elected officials..
* Year two without Illinois state budget almost here..
* Voice of The Southern: Wanted: Courage..
* Op-Ed: Keep local governments operating..
* Which suburban candidates have more campaign mo.....
* Rauner Says A Stopgap Funding Deal Is Close - A.....
* Rauner signs ID law making Ill. comply with fed.....


* Economic woes cause drop in number of Illinois boaters
* Rauner signs ID law making Illinois comply with federal law
* Illinois police sue town, claim body cameras record nonstop
* Study: Rotting trees caused mysterious holes in huge dunes
* 1 dead, 1 injured after boats crash on Rock River
* US Rep. Duckworth settles workplace retaliation lawsuit
* Workplace retaliation lawsuit against Tammy Duckworth settled
* Chicago police arrest teen in slaying of city dispatcher
* Lucas abandons plan to build museum in Chicago after lawsuit
* Illinois women hit hard by state budget impasse

* Economic woes cause drop in number of boaters
* Chicago school money seen as potential deal-killer
* Chicago school money seen as potential state budget deal-killer
* Illinois women hit hard by state budget impasse
* Survey: Nearly 1 million human service clients affected by budget impasse
* Illinois lawmakers to reconvene Wednesday as budget deadline nears
* Illinois State Museum given path to accreditation
* Illinois insurance co-op sues feds over health law payments
* Gun bill at Illinois Capitol gets support from Rifle Association
* Budget standoff forces layoffs at Illinois child aid group

* Who's sitting in Chicago's cushiest board seats?
* The fall and rise of Chicago real estate in three acts
* At Chicago law firms, a salary war breaks out after years of deep freeze
* Why overbanked Chicago has even more banks
* One suburban manufacturer's answer to shortage of skilled workers


* Police: Man shot to death Greater Grand Crossing
* Two ‘aggressive’ suspects rob bank at gunpoint in Minooka
* Man shot in West Englewood
* Police: Man shot to death in car on West Side
* Police warn of home burglaries in Marquette Park
* Man robs Berkeley bank at gunpoint
* Man stabbed, critically wounded in West Pullman
* Man wounded in West Town drive-by shooting
* 21-year-old man killed in New Lenox crash
* One wounded in Pilsen shooting


* Old East Aurora High School stadium to get rousing farewell party
* The World's Ugliest Dog is blind, wears diapers and has an oozing sore
* 'Hamilton' to fundraise for Hillary Clinton with extra performance
* John Kerry on frantic 4-nation European trip after Brexit vote
* 2 dead, at least 21 wounded in shootings citywide
* LINDA C. BLACK HOROSCOPES for 6/26/16
* West Virginia areas hit by floods that killed 24 to get federal aid
* Traditional-style home in Winnetka: $2.79M
* Review: Martin Lawrence struts, talks raunch at Chicago Theatre
* Dating relationship put to test by contact with ex


* Economic woes cause drop in number of boaters
* Chicago school money seen as potential deal-killer
* Chicago school money seen as potential state budget deal-killer
* Angie Muhs: The threshold for national news on our front page
* Their View: Separation of powers prevails
* Statehouse Insider: Lawmakers coming back to Springfield? We're saved
* Bernard Schoenburg: Davis opposes school bathroom transgender rules from DC
* Dr. Rebecca Green: When will the gun madness end?
* Charles Krauthammer: Clinton offers empty rhetoric
* Illinois women hit hard by state budget impasse


* Getting Personal: Mike Metzler
* Letter from Birdland: A look at the colorful past, present of Ireland
* Susan McKinney: Eric Liddell: The runner who lived and died for God
* Reluctant Townie: It's my birthday and I'll write what I want to
* Kelly Strom: Behind the Music
* For the retirees, June 26-July 3, 2016
* Patricia Hruby Powell: Many voices tell of 'Incident on the Bridge'
* Library events, June 26-July 3, 2016
* Seoul: A city of contrasts
* Ted Kooser: An American Life in Poetry, June 26, 2016


* Vatican denies pope has 'Crusades' mentality over genocide
* Pope urges closer unity with Armenian church on final day
* Britain's Labour party leader fires shadow foreign secretary
* LEADING OFF: Strasburg scratched, Nats aim to end 7-game rut
* Pope nears Armenia's closed border with Turkey on last day

* House lawmakers overcome hurdle on key tra...
* Rodney Davis talks funding with Bloomingto...
* The agency that fought Illiana gets a new ...
* Rep. Dold takes educational cruise down Ch...
* Lawmakers decry high turnover rate of VA h...
* CBD Oil, and politics
* Simon considering state Senate bid
* Killer Congressman Tom MacArthur trying to...
* Shutdown? State may not notice
* Rep. Bob Dold

* Illinois to get $17 million for HIV assist......

* Duckworth Settles Workplace Retaliation Ca......

* #TestForFlu Bug Hits Town
* Edgewater Shooting Ends At Foster/Sheridan
* "We Are Uptown Proud!"
* More Words of Love on Sheridan
* UNO’s Rangel gets a slap on the wrist for charter scam.
* Six wealthy guys who lost billions yesterday.
* U.K. names for Donald Trump.
* Six U.K. names for Donald Trump.
* Trump raises questions about Chicago trader's top secret gig
* Durbin's part in the U.S. Senate anti-gun filibuster


* Emergency Management Officials, National Weather Service Encourage Winter Preparedness - November is Winter Weather Preparedness Month in Illinois
* Keep Your Family Safe This Winter - November through February are leading months for carbon monoxide related incidents
* Governor Takes Bill Action
* Illinois Department of Labor Director Hugo Chaviano Awards Governor’s Award for Contributions in Health and Safety to the Illinois Refining Division of Marathon Petroleum Company LP
* State Regulator Elected Treasurer of Interstate Medical Licensure Compact




Hosted by MCS -- CapitolFax.com Privacy Policy -- SUBSCRIBE to Capitol Fax -- Advertise Here -- Mobile Version -- Contact Rich Miller