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 Monday
* TrackBill update
* Caption contest!
* It's worse than we thought
* Question of the day
* Long-term debt is not short-term debt
* Today's quotable
* 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

          
        * ThanksGiveaway at the Pocketnow Deals Store: Enter to win some awesome prizes
        * Apple's Black Friday offer: iTunes Store gift cards with purchase, to benefit (RED)
        * Zombiens invade Rooster Teeth in new action/stratey game
        * Amazon marks down Nexus 9, Chromecast, and more apps
        * Twitter app tracking, OnePlus Store, Gear VR 2 & more – Pocketnow Daily
        * Twitter to use smartphone apps info to improve your profile
        * Apple Watch website provides more details on its functionality

        * Cool Tools 2014 Holiday Gift Guide: Gifts for $10 or less
        * Yaktrax Ski
        * LG G Watch Is Just $99 On Google Play
        * Gift Guide: 10 Sweet Gifts That’ll Make Hard-Core Gamers Swoon
        * Choose From Two Great Pairs of Over-Ears at All-Time Low Prices
        * Motorola Moto X Coming To Republic Wireless December 10th
        * OnePlus One Available Without An Invite Until Sunday

        * Catching up with Tadahito Iguchi
        * White Sox ACE program helps send players to college
        * Additional 2005 fan-favorite players added to '15 SoxFest
        * White Sox introduce Adam LaRoche and their plans for him
        * White Sox plan for contention a work in progress
        * White Sox officially announce LaRoche deal
        * Red Sox seize offseason driver's seat with signings

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


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

        Archives
        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


        * Rauners serve Thanksgiving meals at West Side s.....
        * Rauner says own money will go toward executive .....
        * Will Rauner want the mansion?..
        * Hot meals provided to homeless across Chicago area..


        * Against odds, Chicago school aims for championship
        * Woman's body found near Whiteside county jail
        * Against odds, Chicago school aims for championship
        * Liver transplant recipient marks 25th anniversary
        * Woman's body found near Whiteside county jail
        * VSU chief financial officer to leave for new job
        * Collinsville man guilty of murder in fatal wreck
        * 3 arrested in Chicago during Ferguson protest
        * Clemency for man wrongfully jailed for 1991 murder
        * Illinois doctor fined over medical marijuana slip

        * Illinois attorney general files notice of appeal in pension case
        * Quinn grants clemency to 126 ahead of holiday
        * Illinois gives $4.5M food banks for modernization
        * State begins accepting fracking applications
        * Debt rating agencies weigh in on state pension ruling
        * Lisa Madigan to ask Illinois Supreme Court to consider pensions
        * Rauner tackles transition agenda
        * Attorney general warns of immigration scams
        * State pension changes ruled unconstitutional; appeal to Illinois Supreme Court next
        * State to refund $60 million in retiree health care money

        * Most BP oil spill claims handled correctly, McGladrey says
        * Illinois AG Madigan files notice of appeal in pension case
        * Congressmen sound alarm over anti-Asian Carp move
        * Motorola Mobility loses bid to extend antitrust law reach
        * Chicago business activity is growing—but at a slower pace


        * Jesse L. Miller, former alderman, community activist in North Lawndale, dies at 72
        * ||| Jack Higgins’ perspective
        * How Illinois can charge  ahead on education
        * Quinn grants pardons to 126, including one of Dixmoor Five
        * Educators up in arms over Rauner's question on budget cuts
        * Would-be marijuana farmers pledge half of earnings to schools
        * Gutierrez: Obama's immigration delay cost Pat Quinn votes
        * Rep. Luis Gutierrez: Obama’s immigration delay cost Pat Quinn votes
        * IDOT to change '5 minutes to Jane Byrne' sign to 'Jane Byrne Interchange'
        * Thanksgiving parade draws thousands to State Street


        * Three wounded in Englewood stabbing
        * 4 injured in separate Thanksgiving Day shootings
        * Crash-and-grab burglary in Austin
        * Boat service provider negligent in fatal accident, lawsuit alleges
        * Cupich celebrates Thanksgiving Mass, prays with the poor
        * Archbishop Cupich emphasizes spiritual blessings at Lake Forest Thanksgiving mass
        * Judge reassigned after failing to follow contempt rules, officials say
        * Pre-Thanksgiving revelers in Naperville unfazed by new alcohol rules
        * Woman shot dead in apparent domestic-related shooting in Gary
        * Ferguson protester in Chicago charged with felony


        * LLCC Offers Variety Of Community Education Classes
        * Incoming U of I President Speaks To Springfield Audience
        * Another Year Of "Messiah" For Springfield Choral Society
        * New Exhibit On Lincoln's "Undying Words"
        * Locals Organize For Vigil In Response To Ferguson
        * Illinois Hunters Kill 52,000 Deer Over The Weekend
        * Pension Ruling "Credit Negative," But No Ratings Change
        * Tim Landis: Foreclosure Sales, CIPS Icehouse and Heritage River Trail
        * Part Timers & Manufacturing in Illinois Feeling a Slow Economic Recovery
        * Notes From Ferguson: A QA With St. Louis Public Radio's Rachel Lippmann


        * Michael Carrigan: Illinois can’t afford another year without a raise
        * Esther Cepeda: How to really enjoy the holidays
        * E.J. Dionne: Thank a politician today
        * Our Opinion: Help combat hunger this holiday season
        * Eugene Robinson: On replacement, caution urged
        * George Will: Thanks, or something
        * Quote of the Day: Nov. 27, 2014
        * Illinois attorney general files notice of appeal in pension case
        * Quinn grants clemency to 126 ahead of holiday
        * Illinois gives $4.5M food banks for modernization


        * County accepting Christmas lights for recycling
        * Crowds get jump on Black Friday
        * Early morning Thanksgiving exercise a tradition at the Y
        * Pension ‘fixers’ now among takers
        * Christmas in Carterville is set for Dec. 5
        * Children invited to shop at Santa's Gift House
        * Marion Senior Club to host Christmas potluck
        * Andrew Acklin Jr.
        * Stella Parrish
        * Ruth Parten


        * Seahawks stomp 49ers
        * Aurora man charged with attempted murder
        * Full holiday menu for Obamas, plus 6 pies
        * Cathedral may become museum to the slave trade
        * Novelist PD James dies at age 94

        * US House race, Illinois 6th District: Pete...
        * Coroner: Dad collapses on infant daughter,...
        * Roskam keeps 6th Congressional seat - Chic...
        * US Republican congressman to work for bipa...
        * Congressman Randy Hultgren seeks intern fo...
        * Davis retains US Congress 7th seat with ea...
        * US Rep. Gregg Harper (R-MS) to Serve as Vi...
        * Randy Hultgren Defeats Dennis Anderson In ...
        * Danny Davis Defeats Robert Bumpers In Illi...
        * Rep. Trey Gowdy will continue leading Hous...

        * Durbin Celebrates Obama’s Announcement at ......

        * Iran's Supreme Leader supports extending t......
        * Chicago Tribuen: Squeeze a stalling Iran t......

        * UIC Awarded $5.5 Contract To Continue Traffic Research
        * What do we think about Obama’s efforts to force-feed immigration reform to infant-minded in our nation?
        * "Nigerian Kitchen" Closes On Wilson
        * #HappyThanksgiving from The Sixth Ward blog!
        * In Chicago the race is on. It’s easy as ABC.
        * Lisa Madigan files her appeal.
        * The Better Government Association continues to spread the lie about public employee pensions.
        * Happy Thanksgiving. “My idea,” says Rahm.
        * Chicago parents demand answers from Emanuel after sex ed lessons revealed
        * Happy Thanksgiving


        * Governor Quinn Announces Investment to Help Regional Food Banks Better Serve Those in Need - Governor’s Investment Will Ensure Lower Cost and Higher Efficiency for Services Reaching Nearly 2 Million Illinois Residents
        * Governor Pat Quinn Takes Clemency Action
        * Governor Quinn Statement on Abner Mikva Receiving Nation’s Highest Civilian Honor
        * Department of Insurance Announces Multi-State Settlement with Symetra Life Insurance and Symetra National Life Insurance Company - Illinois will share part of a $1.2 million penalty against Symetra Life regarding Life Insurance policies
        * Avoid Foodborne Illness This Holiday Season




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