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 until Memorial Day
* Gaming bill could grow
* SUBSCRIBERS ONLY - OT update
* Question of the day
* He gone
* Harmon: Rauner is "bullying" and "holding the entire state hostage"
* Today's quotable
* Madigan tax hike defeated
* Another welcomed change
* Business as usual is right
* Rauner to unveil actual bills today, with no "right to work" in sight
* Serving Consumers, Honoring Veterans – Credit Union Cooperative Values in Action
* Your daily "right to work" roundup
* *** LIVE *** Session coverage
* SUBSCRIBERS ONLY - Supplement to today’s edition
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Good morning!
* 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

          
        * Find the answers you’re looking for with the Light app
        * How to Set Up Apple Pay on Apple Watch
        * tinyCam Pro update brings background video recording 24/7
        * TeamViewer QuickSupport allows remote tech support on your phone
        * Bundle groups your photos and lets you share them privately
        * The Week in iPhone Cases: Puppy, koala, or fox? Check out Case-Mate’s cute animal-shaped cases
        * Smile! The amazing history of emoticons and emojis

        * Top 10 Smart Ways to Organize and Upgrade Your Garage
        * Mass Surveillance Program Faces Uncertain Fate as Senate Blocks NSA Bill
        * Use an IKEA Box as a Foldable Laptop Hood for Outdoor Use
        * 5 creative ways to keep in touch after graduation, besides Skype
        * Cinematic Pins from Pinterest: This Week in Social Media
        * Geeky Gadgets Deals Of The Week
        * MeeGoPad T02 – Windows 8.1 Mini PC Stick With Intel Atom Processor

        * Tough stretch of games brings additions to the rotation
        * For Cusack, Konerko represents the good in sports
        * White Sox to honor Konerko, retire No. 14 today
        * Shark shows bite as Sox sink Twins, end skid
        * Garcia to be patient with right knee injury
        * Shark shows bite as Sox sink Twins, end skid
        * Shark shows bite as Sox sink Twins, end skid

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


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

        Archives
        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


        * Gov. Rauner’s New State Prisons Chief Abruptly .....
        * Korecki: Rauner vs. Madigan — Clash of the tigh.....
        * Illinois prisons director resigns 2 months afte.....


        * Law fails to stop Illinois schools from fattening pensions
        * Medical pot businesses to battle black market for customers
        * 4-year-old girl shot in head outside Chicago prom party
        * Democrats giving no hint of compromise with Rauner on budget
        * Rauner names 4 to Illinois Tollway Authority
        * Murray Energy expects more than 1,800 coal mine layoffs
        * Illinois prisons director resigns 2 months after taking job
        * Illinois mom takes son's place at graduation after he dies
        * Drew Peterson granted trial delay in murder-for-hire case
        * Sand dune along Lake Michigan to remain closed this summer

        * Law fails to stop Illinois schools from fattening pensions
        * Rauner agenda surfaces at Capitol
        * Illinois prisons director resigns 2 months after taking job
        * House Democrats vote down workers comp bill
        * Langfelder talks DNR lake partnership
        * U of I bracing for 'very damaging' cuts, new president says
        * State report says Illinois college chiefs enjoy lavish perks
        * Millionaire tax falls short in Illinois House
        * Gov. Rauner softens some 'turnaround agenda' demands amid ongoing budget battle
        * Illinois State Board of Education promises shorter PARCC exam next school year

        * First look: Hotel Allegro's $15 million renovation
        * What's Chicago's future as a global city?
        * Need a job? China Inc. is coming to Illinois—and it's hiring
        * City says key refinancing now back on track
        * Rauner to put pro-business bills before Legislature


          * Four-year-old girl shot in head outside prom gathering one of at least 18 shot in 12 hours
          * Rauner names 4 to tollway board
          * Prairie Crossing Charter School, state face new lawsuit over funding
          * Cop purportedly sleeping on video gets suspension
          * Illinois bill aims for local police to investigate college campus sexual assaults
          * 606 trail inspires excitement, fear from neighbors


          * Illinois Supreme Court hears $10B Phillip Morris appeal
          * Sheriff calls on feds to investigate Puerto Rican agencies that send addicts to Chicago
          * Sheriff names clinical psychologist to run Cook County Jail
          * Illinois prisons director resigns 2 months after taking job
          * Obama library foundation raised $5.4 million in 2014
          * Illinois moves to downgrade pot possession to a fine
          * Emanuel calls on Chicagoans to prevent 'lost generation'
          * Grand Jury Indicts 6 Baltimore Officers In Freddie Gray's Death
          * Inauguration Day: New City Council faces serious financial problems
          * Avian flu outbreak takes poultry producers into uncharted territory


          * Law fails to stop Illinois schools from fattening pensions
          * Proud of WWII service, they opposed Vietnam War
          * Paul La Schiazza: Illinois' landline law stuck in the past
          * Charles Krauthammer: You want hypotheticals? Here's one
          * Rauner agenda surfaces at Capitol
          * Illinois prisons director resigns 2 months after taking job
          * House Democrats vote down workers comp bill
          * Langfelder talks DNR lake partnership
          * U of I bracing for 'very damaging' cuts, new president says
          * State report says Illinois college chiefs enjoy lavish perks


          * Max sentence for Champaign drug dealer
          * Bridle Brook Adult Community 5-23-15
          * Terri Reifsteck with Visit Champaign County 5-23-15
          * Ben Quattone with Honda BMW of Champaign 5-23-15
          * On the water: Expect boat patrols over holiday weekend
          * Uber pilot project reduces city's role in regulating vehicles for hire
          * Reduced regulatory role for city under Uber pilot project
          * Rantoul native celebrates 25 years as nun
          * Preservation efforts continue to pay off
          * Weekend planner: Get outdoors for sweet summer sounds


          * Parades and ceremonies highlight Memorial Day events in Lake County
          * Patriot Act extension still caught in heated battle
          * Police: Man sought in death of woman kept in box likely near
          * Ohio patrolman acquitted in 2 deaths amid 137-shot barrage
          * Cleveland patrolman found not guilty in deaths of 2 unarmed suspects in 137-shot barrage

          * Controversy over gay themed book read in E...
          * Rep. Rodney Davis: Lawmakers, Obama Fight ...
          * Bost announces funding for Du Quoin Volunt...
          * Lawmakers push USDA and EPA to get in sync...
          * Durbin backs crackdown on NSA snooping
          * New Coal Regulations Could Cost Southern I...
          * 'We're trying to get things done'
          * Durbin, Bustos announce grant for Quad Cit...
          * Memorial Day events in the Heartland 2015
          * Local radio show on WMBD focuses on middle...

          * McConnell's floor strategy backfires...
          * U.S. Senators urge Obama administration to......
          * Iranian negotiations are now liberals’ nig......
          * Congress' familiar path: short-term solutions...
          * Obama’s Strategy Against Islamic State Und......

          * Where To Watch Weird Al Yankovic Play Jesu......
          * Where To Watch Weird Al Yankovic Play Jesu......
          * How Congress voted this week...
          * Senate Leaves Town With No Deal on Patriot......

          * No cuts. Revenue. Tax the rich.
          * Eloquent testimony from Karen Zaccor on Noble Street.
          * Do You Understand the Electoral College?
          * Jindal Releases Pro-Religious Freedom Ad
          * Chicago abortion clinic license revoked, fined $40,000 for building code violations
          * J.C. Brizard is front runner for Buffalo top education spot.
          * Keeping retirement weird.
          * A Leg Up
          * “The Driver’s Side” – News From The Motorist’s Perspective
          * Geek Tip: How Not To Handle Getting A Parking Ticket


          * The Illinois Department of Public Health Urges Illinoisans to Take Precautions Against West Nile Virus - Illinois Department of Public Health offers tips for avoiding mosquito bites
          * IDOT Suspends Non-Emergency Road Work for Memorial Day Holiday Weekend - Lanes Opened to Improve Traffic Flow
          * Illinois State Fire Marshal Recognizes EMS Week
          * IDOT, ISP: Drive Safe, Drive Smart Over Memorial Day Weekend - Click It or Ticket Campaign Continues, New “Driving Dead” Episode Debuts
          * Breakfast Club Fans Can Take Home Movie Memorabilia with Special 30th Anniversary Auction - Theater Chairs from Set of Iconic Movie Up for Sale




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