Institute of Government and Public Affairs

  The budget passed by the Illinois General Assembly does not rely on extending the 2011 income tax hike, as originally planned by Democratic leadership. Instead, it's based on state government borrowing from itself.

Instead of making the five percent income tax rate permanent or chopping away at government programs, lawmakers opted to fill a massive hole in state revenues by doing something called "interfund borrowing."

Bad Reputation for Illinois is Costly to Taxpayers

Mar 10, 2014
Rich Egger

Illinois already has the worst credit rating among states.  While that adds to the cost of borrowing money, Illinois winds up paying even more because investors view it as risky of default.