Governor’s Borrowing Proposal

Governor Quinn is proposing to borrow $8.75 billion to pay unpaid bills and help balance budget for FY12.

Chicago Commons does not take a position on this.

However, for those so inclined, here is a summary of the PRO and CON positions:

1. PRO — State of Illinois has already borrowed money from all of the providers and contractors like Chicago Commons. So Quinn’s proposal can be described as just “refinancing” existing debt in a more responsible, less expensive manner.

2. CON — Some of this borrowing will allow the State to avoid some budget cuts in FY12, effectively “kicking the can down the road”. The borrowing just allows the State to dig its long-term hole deeper, delaying cuts and avoiding decisions.

Ultimately, the answer is somewhere in the middle.

For example the State may have to borrow something to pay some of its unpaid bills, but it must not borrow in order to defer hard decisions.

Sun Times Editorial did a good job, I think, of communicating this balanced message.