Tuesday, December 28, 2010 8:15 PM

Illinois Governor Wants to Borrow $15 Billion to "Balance" the Budget; Illinois Total Unfunded Liabilities Exceed $200 Billion Already

The state of Illinois elected a Keynesian nutcase of epic magnitude in Governor Quinn. Quinn's latest brainstorm is to borrow $15 billion to "stabilize things".

Quinn has not said how he will pay back the loans. Then again, he does want to raise taxes like mad and probably will do so. Regardless of what he does, Quinn is so beholden to unions, Illinois will need to borrow again 12 months from now.

Please consider Quinn Weighs $15 Billion Illinois Borrowing ‘Option’ http://noir.bloomberg.com/apps/news?pid ... RDg8&pos=4

Illinois Governor Pat Quinn is considering borrowing $15 billion to pay overdue bills and balance the biggest budget deficit in the state’s history.

Illinois faces a budget shortfall of at least $13 billion because of declining tax revenue. The state Senate in November didn’t have the votes to approve the borrowing of $3.7 billion to cover pension-fund contributions for the fiscal year that ends June 30.

Senate President John Cullerton and House Speaker Michael Madigan declined through spokesmen to say if the bond sale would draw enough support to pass.

The Senate Republican leader, Christine Radogno, criticized the proposal as lacking specifics about how the money would be paid back.

Other ideas under consideration include a 2 percentage- point increase in the state income tax that the Senate approved in 2009. The current rate is 3 percent. The House didn’t take the measure up for a vote.

Quinn’s new borrowing proposal, which the Chicago Tribune reported today, drew criticism from one municipal-bond investor. Matt Dalton, chief executive officer of Belle Haven Investments Inc., in White Plains, New York, questioned the wisdom of borrowing.

“He’s trying to sign up for another credit card,â€