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.


* When Indiana invaded Illinois
* 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

          
        * iOS 8.4 removed iTunes Home Sharing support
        * Users say Google capping “unlimited” uploads in Photos storage [UPDATE]
        * Moto 360 sees hefty price drops at multiple retailers as new model approaches
        * Xiaomi sold 34.7 million smartphones in the first half of 2015
        * Google discounts the 32GB Nexus 6 to £303 from the UK Play Store, £378 for the 64GB
        * Samsung’s next Tizen phone could be the Z3
        * Celebrities read fairy tales for a good cause

        * Fallout 4 Digital Xbox One Game Now Available To Pre-Order (video)
        * New Steve Jobs Movie Trailer Released (Video)
        * Olloclip Studio Smartphone Photography System Hits Kickstarter (video)
        * OXO Pepper Mill
        * Music Home Sharing Removed In iOS 8.4
        * iPhone 6S And 6S Plus To Gets Faster Qualcomm LTE Modem
        * New iPods Spotted in iTunes 12.2

        * White Sox not deterred by delays, top Cards
        * White Sox shows signs in two wins vs. Cards
        * White Sox show signs in two wins vs. Cards
        * White Sox 7, Cardinals 1: Living after midnight
        * Danks draws O's Ubaldo in Chicago opener
        * White Sox not deterred by delays, top Cards
        * ACE program not short on success stories

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


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

        Archives
        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


        * Day two of FY 2016 and no budget; One month bud.....
        * Residents hit by tornado get more time to file .....
        * State grounds its airplanes; no layoffs planned.....
        * Residents hit by tornado get more time to file .....
        * Residents hit by tornado get more time to file .....
        * Residents hit by tornado get more time to file .....
        * Residents hit by tornado get more time to file .....
        * Residents hit by tornado get more time to file .....
        * Residents hit by tornado get more time to file .....
        * Residents hit by tornado get more time to file .....


        * Champaign man who admitted killing U of I student sentenced
        * Mayor: Chicago school cuts include layoffs, less maintenance
        * Illinois House defeats 1-month budget, battle continues
        * 2 red panda cubs born at Chicago's Lincoln Park Zoo
        * U of Illinois president puts raise talk off over budget
        * Emanuel won't detail what he knew on Clinton emails
        * Ex-Illinois women's basketball players sue school, coach
        * Illinois rainfall of 9.53 inches set June record
        * Property tax freeze, Chicago pension relief advance
        * Budget impasse shuts down program for troubled youths

        * State lawmakers point fingers over budget impasse; temporary budget in limbo
        * Former Illinois treasurer employees under Dan Rutherford sue over firings
        * Lawmakers point fingers over budget impasse; temporary budget in limbo
        * Illinois medical marijuana patients now number 2,600
        * Budget impasse shuts down Lincoln's Challenge program for troubled youths
        * Illinois House defeats 1-month budget; same bill coming from Senate
        * Rauner vetoes pay raises for state lawmakers
        * Illinois Senate advances plan to increase school funding
        * Illinois Senate committee advances plan to increase school funding
        * Democrats push 1-month budget; Rauner, GOP likely to oppose

        * 8 random questions for the CEO of Inventables
        * How many boutique cycling studios does Chicago need?
        * Roughing it in comfort down on the farm
        * Bluegrass at the Opera House, an Indendence Day Salute in the park
        * McDonald's localizes menus with pulled pork, bacon McMuffins


          * Boy playing basketball hurt when SUV drives onto court
          * 1 killed, 5 wounded in shootings
          * Carnival worker charged in underage sex case
          * Former Illinois treasurer employees sue over firings
          * Alleged 'squatters' get boot, charges filed
          * City extends taxing power to online movies, music, more
          * Lawyer for woman accused of animal neglect: Rescued dogs weren't hers
          * Rauner and Democratic lawmakers show no signs of progress
          * Paralyzed cop says he's being evicted because city failed to pay bills
          * Man who admitted killing U. of I. student from Chicago sentenced


          * After pension payment, Chicago Public Schools to make $200M in cuts
          * CPS, Emanuel warn of deep cuts, layoffs to school district
          * After marriage equality, what's next for the LGBT movement?
          * The night Chicago politicians spent punching each other in the face
          * The legacy of Willie Dixon on his 100th birthday
          * Supreme Court rules all states must license and recognize same-sex marriages
          * Preckwinkle may reevaluate sales tax plan if Springfield acts on pensions
          * Democratic lawmaker 'mad as hell' over Rauner's veto of state budget
          * At eleventh hour, CPS makes huge pension payment
          * Contract talks break down between Chicago teachers and city


          * Bernard Schoenburg: Gov. Rauner's tone has changed, Sen. Andy Manar says
          * Our Opinion: Winslow looks to heal divisions in Springfield
          * George Will: Some GOP candidates becoming unhinged
          * Eugene Robinson: In Charleston, 'the power of God's grace'
          * State lawmakers point fingers over budget impasse; temporary budget in limbo
          * Former Illinois treasurer employees under Dan Rutherford sue over firings
          * Illinois medical marijuana patients now number 2,600
          * Budget impasse shuts down Lincoln's Challenge program for troubled youths
          * Rauner vetoes pay raises for state lawmakers
          * Illinois Senate advances plan to increase school funding


          * Beachey moves on from Centennial
          * UI roundup: Small misses out on PGA event
          * Birks: Europe trip was worth it
          * Illinois, North Dakota State will play in hoops
          * Asmussen: Heavy damage done to women's basketball
          * UPDATED: Budget measure fails in House
          * Reginald Scott Sentencing
          * Best of teams: No. 38, Penn State
          * Best of Illini: No. 38, Kenny Nelson
          * Illinois budget stalemate already taking toll


          * AP Source: Kings trade Stauskas, Thompson, Landry to 76ers
          * Walker homers twice as Pirates pound Tigers 9-3
          * Lester strong, but Cubs don't strike until 11th
          * Chicago White Sox ace Sale closes in on record
          * Altuve helps Astros sweep Royals with 6-5 win

          * “The Driver’s Side” – News From The Motorist’s Perspective
          * End Of An Era: City Sticker Lines Evaporate A Year After Start Of Year Round Sales
          * Having to flee one’s home ought to be a disgrace on an Independence Day
          * Friday City Trash Pick-Up Is On Thursday This Week
          * Chicago's Archbishop Comments On Supreme Court Decisions
          * Cantina De La Granja Slated For Late July Opening
          * Emanuel Provides Details On CPS Cuts, Possible Property Tax Hike
          * "Dispensary 33" Coming Soon to 5001 N. Clark
          * Durbin celebrates at Gay Pride Parade 2015
          * Illinois Senate Passes Temporary Budget


          * State, Teamsters Reach Tentative Agreement - Workers at IDOT, DHS, IDES, and CMS in Cook County to Vote on New Contract
          * Governor Rauner Extends Tax Filing and Payment Deadlines for Businesses and Individuals Impacted by Recent Tornado - Deadlines Pushed to December 31, 2015
          * Illinois EPA Releases Annual Report on Landfill Capacity
          * IDNR Urges Public to Leave Fireworks Displays to Those Who Are Licensed and Trained - Fireworks Show Sponsors Reminded to Check Credentials of Fireworks Vendors
          * Governor Receives Initial Criminal Justice Commission Report

              * Durbin Statement On Opening Of Embassies W......
              * Senator slams for-profit college for 'dece......

              * Kirk supports Granite City stroke survivor......




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