Illinois Democrats foist budget crisis onto working class
January 17, 2011
... The IGPA report notes that in a December survey of state budget gaps, it was found that the deficit in Illinois “accounted for about half the total of state deficits nationally and was nearly twice as large as the deficit in California, the second largest.”
... The cost of credit default swaps on Illinois’ bonds are the highest in the country, indicating that many investors believe the state will eventually default on its bond payments.
Is this still true? $300K is still pretty big.
Illinois Governor to Seek $8.75 Billion Bond for Overdue Bills
SFGate / Bloomberg
January 12, 2011
... part of a package of measures that included a 67 percent increase in the personal income tax aimed at plugging a $13 billion budget hole ... boosted the corporate income tax by 46 percent, to a rate of 7 percent from 4.8 percent.
... The cost of insuring against default $10 million of Illinois debt maturing in five years fell $28,000 to $300,000 yesterday, the lowest since Dec. 9, according to data provider CMA.