Cullerton Calls For Debt Restructuring For State’s Unpaid Bills

SPRINGFIELD, Ill. (CBS) — State revenues have increased this fiscal year, but there are still billions of dollars in backlogged bills to contend with.

As WBBM Newsradio’s Alex Degman reports, Illinois State Senate President John Cullerton (D-Chicago) still thinks debt restructuring is the way to go.

LISTEN: WBBM Newsradio’s Alex Degman reports

Debt restructuring is another way to say borrowing money to pay down old debt at a lower interest rate. Cullerton says the last time he checked, the state still owed $6 billion.

“We could borrow that six, refinance it, and pay it off in seven years by paying $1 billion a year in interest, and avoid costs that we make by paying when we’re in violation of the Prompt Payment Act,” he said.

Cullerton says most Democrats are on board with that plan, but Republicans have held up negotiations as they want no new borrowing, instead opting for more spending cuts.

However, a borrowing plan failed in the Senate during last spring’s legislative session, receiving just 19 votes. There are 35 Democrats in the Senate.

  • Just Axin

    It’s this POS fault we are in so much debt. Now he pretends to care.

  • Dan

    I wonder who the insiders would be that would reap the consulting and commission fees of course needed to broker such a deal……

  • southside

    People of Cullerton’s district (Madigan’s too): Your guy is ruining the state. PLEASE STOP VOTING FOR HIM> HE IS AN IDIOT!!

  • E M R L

    This guy has been in office way to long and we need term limits. Guys like him, Madigan and Rahm along with the Daley family have bleed this city and state nearly dry and then blame everbody else including the goverment workers for their own stupidity, thay have nobody else to blame but themselfs for their own greed and egos. The US Attorney should put the hole bunch in jail and take the lille princess lisa with them she’s NO better, she should indict her fater if she a honest politican!

  • PG

    Politicians are the only group of people who can create a problem, campaign to fix the problem, then pat themselves on the back once they fix it. The problem in Illinois is that the politicians here aren’t fixing the problem, and this guy is one of the reasons we are in this mess to start with! People in his district….would you please stop voting this clown into office?!?

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