* A new record…
The next really good month for revenues is December, according to the comptroller’s office. So, without a bonding plan, expect that backlog number to remain pretty high.
But on Monday, the governor told reporters that the bonds do not solve any problem because lawmakers failed to set aside money to make principal and interest payments over the 12 years the debt would be outstanding.
“We need to come up with roughly half a billion (dollars) of cuts just to be able to service a bond offering,” he said, adding that he planned to meet with legislative leaders for discussion.
Pallasch said school aid and pension payments this week will lower the bill backlog into the $15 billion range as the Dec. 31 deadline for issuing the bonds looms.
“The ball’s in their court now and we are working with them to make this happen,” he said.
Gov. Bruce Rauner doesn’t want to negotiate in the media about what actions the Legislature should take next, but he said the state budget is not balanced and there needs to be a construction bill. […]
“I don’t like to borrow to fund deficits,” Rauner said. “Borrowing for long term capital projects is actually good management. It’s actually the prudent financial thing to do. But we can get the debt service covered if we can shrink some of the spending on other things and then debt service to fund construction projects.”
Rauner announced a plan earlier this month to borrow $6 billion dollars to pay down some of the $16 billion bill backlog with debt service to be half a billion dollars each year for the next 12 years.