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.READ MORE: Jubilant And Inspired Fans, Booming Businesses Near Wintrust Arena As Chicago Sky Win WNBA Championship
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.READ MORE: CBS 2's Ryan Baker Celebrates Chicago Sky Win With His Family At Wintrust Arena
“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.MORE NEWS: Robberies On Magnificent Mile Prompt Warning For Businesses
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.