Reports: Borrowing from Fed has long-term economic consequences for failing states – Center Square

In a new report by Pew Charitable Trust’s division on state fiscal health, researchers suggest that states like Illinois and others borrowing from MLF, “could help, but it would be only one component in a broader strategy that will require other budget adjustments.”
2 Comments
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
UnclePugsly
5 years ago

Perhaps it’s in there and I missed it, but I haven’t seen what recourse the Fed has if Illinois decides to not repay it’s MLF ‘loan’? I strongly suspect that Pritzker could by ‘executive order’ declare the MLF Fed loan to be canceled due to the Covid-19.

Bob Out of Here
5 years ago

Borrow all you want from Municipal Issue Liquidity Facility, won’t do any good without spending reform which the Democrats staunchly refuse to do.

SIGN UP HERE FOR FREE WIREPOINTS DAILY NEWSLETTER

Home Page Signup
First
Last
Check what you would like to receive:

FOLLOW US

 

WIREPOINTS ORIGINAL STORIES

Mark Glennon on AM560’s Morning Answer: Chicago pension buyout plan mostly shifts debt rather than eliminating it, property tax surge doubles inflation over three decades

Chicago’s political leadership is floating a pension buyout program as evidence it is seriously addressing the city’s thirty-six-billion-dollar unfunded pension liability, but Mark Glennon, founder of the Illinois policy research organization Wirepoints, said that the proposal moves debt from one column to another rather than reducing it, and that the broader fiscal picture facing the city continues to deteriorate across every measurable dimension. Audio here.

Read More »

WE’RE A NONPROFIT AND YOUR CONTRIBUTIONS ARE DEDUCTIBLE.

SEARCH ALL HISTORY

CONTACT / TERMS OF USE