Sarah Burnett, Jun. 25, 2013, Huffington Post
CHICAGO -- Like your cousin who
doesn't pay his bills on time and squanders money he doesn't have, Illinois is
paying the price – in both cash and reputation – for years of ignored warnings
about its pension crisis, the worst in the nation.
Largely because of its unfunded
retirement plans, Illinois has replaced longtime bottom-dweller California as
having the lowest credit rating of any state. So when Illinois tries to borrow
money, it faces the same problem as the spendthrift cousin: far higher interest
rates.
The state's financial failings are
so well-known, they have inspired a name on Wall Street – the "Illinois effect,"
a reference to the fact that cities, universities and other bond-issuing
entities here must pay more in interest, even if they are responsible spenders.
Read the full story: www.huffingtonpost.com
Related: Illinois Credit Rating and Job Growth
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