Gov. Scott Walker says the Wisconsin National Guard is prepared to respond wherever is necessary in the wake of his announcement that he wants to take away nearly all collective bargaining rights from state employees.
Walker said Friday that he hasn’t called the Guard into action, but he has briefed them and other state agencies in preparation of any problems that could result in a disruption of state services, like staffing at prisons.
Bonds from Illinois, the second lowest-rated U.S. state, are yielding less than issues from comparably rated Portugal as the state prepares to market the largest taxable municipal debt sale on record.
Next week Illinois is selling $3.7 billion of taxable debt to investors around the world after the end of the Build America Bonds program left the municipal market with pent-up demand for such securities. The offering will likely see increased interest from international and crossover buyers, said Richard Ciccarone, managing director of McDonnell Investment Management LLC in Oak Brook, which holds more than $7 billion of muni debt. […]
Its four-year bonds traded yesterday at a 4.40 percent yield. Comparable bonds from Portugal were yielding 6.15 percent, Bloomberg data show. The country, which has the euro- region’s fourth-largest budget deficit, has raised more than 4 billion euros ($5.5 billion) this year selling securities through auctions and private placements as the nation seeks to avoid resorting to international aid. […]
Illinois last month boosted income taxes 67 percent to help close its budget deficit, an act that has “resonated” with international investors, said John Sinsheimer, the state’s director of capital markets. The state has marketed the bonds in eight cities across Europe and Asia in the last two weeks, he said. […]
“They’re going to pay a penalty for their slow movement in addressing some of their basic weaknesses,” Ciccarone said. Still, “a lot of investors will be attracted since yields on investment-grade corporates are relatively low compared to what they can get on Illinois.”
According to Bloomberg, this is the largest taxable muni bond sale since 1990.
…Adding… Our resident budget expert Steve Schnorf points out in comments that the $10 billion pension bond under Blagojevich would be far larger than this one. Bloomberg may have made a goof.
* Meanwhile, Gov. Pat Quinn talked to the media today about the budget. Here’s the raw audio file from IIS…
“It’s going to be a lean year, we have to be very, very frugal,” Quinn said. […]
The governor would not say what areas will face cuts this time around, but said they will be done “in a fair way, a balanced way.”
When asked if state workers would face layoffs, Quinn said it “depends on the agency,” but noted the state has about 1,000 fewer employees now than when he took over two years ago. […]
“They’re talking about a governor that’s cut more out of the budget than any other governor in Illinois history, that’s what I’ve done,” Quinn said. “There’s always folks in the peanut gallery there that have unspecified reductions that they’re talking about. If they have ideas we’re happy to hear them, but you can’t hide in the corner.”
He also said he considered law enforcement and public safety a “core priority.”
* This week’s Capitol View features talk about the governor’s budget address next Wednesday as well as other stuff. Watch…
Online retail giant Amazon.com is closing a suburban Dallas distribution center and scrapping plans to expand Texas operations after a dispute with the state over millions of dollars in sales taxes, an executive informed employees Thursday in an e-mail obtained by The Associated Press.
Dave Clark, Amazon’s vice president of operations, writes in the e-mail that the center will close April 12 due to Texas’ “unfavorable regulatory climate.” Amazon spokeswoman Mary Osako would not say Thursday how many employees work at the Irving distribution center.
Texas contends Amazon is responsible for sales taxes not collected on online sales in the state. The comptroller’s office last year demanded $269 million in uncollected sales taxes from the company. The case is currently pending before the State Office of Administrative Hearings.
“We regret losing any business in Texas, but our position hasn’t changed: If you have a presence in the state of Texas you are required to pay sales tax, just like any other business that has a presence in Texas,” said Allen Spelce, a spokesman for Texas Comptroller Susan Combs.
A similar tax bill is sitting on Gov. Quinn’s desk.
