 Rutherford on Monday said he cannot support adding to Illinois'
burgeoning debt. The first-term Republican treasurer released his
own report that says Illinois' total debt would cost every household
in the state $42,000. Rutherford arrived at the number by adding
Illinois' $140 billion in unfunded pension and health-care
liabilities, the state's $45 billion bond debt, and the nearly $8
billion in unpaid bills.The treasurer said lawmakers must cut
spending and live within their means in order for Illinois to pay
off the debt.
"You can't borrow any more money," said Rutherford. "And if I
need to send letters to the rating companies to tell them the
treasurer of Illinois is opposed to any more borrowing, I'll go
ahead and do that."
Rutherford said alerting national rating agencies and bond houses
could make it more expensive for Illinois to borrow. He said he
hopes that step would give lawmakers pause before asking for a
billion dollars.
And while the state's treasurer can only stop short-term
borrowing, lawmakers are maneuvering to pass a measure that would
bypass any authority Rutherford has.
"I don't have a vote on (the Senate plan)," said Rutherford. "If
it's long-term, I can't stop it."
State Sen. John Sullivan, D-Rushville, said Republican and
Democratic lawmakers must approve any borrowing, and Rutherford's
approach to handling Illinois' massive pile of unpaid bills bothers
him.
"Right now we're using school districts, universities, private
companies and health-care providers -- we're using them as our
credit card," said Sullivan. "They're carrying that debt for us."
Sullivan said he agrees with the treasurer that Illinois does not
need to take on any new debt, but paying off old bills is taking
care of old debt.
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Lawrence Msall, president of the Civic Federation in Chicago,
said unless Sullivan and other lawmakers cut state spending, all the
borrowing in the world won't erase the backlog.
"By borrowing instead of cutting, lawmakers are ensuring that
there will be that much less to spend on schools and health care in
the future," Msall said.
The Civic Federation, which advocates for improvements in
government efficiency and tax policy, according to its website,
issued a report earlier this month that calls for state lawmakers to
trim billions from the state budget.
Msall said that if Illinois could trim $5 billion from Gov. Pat
Quinn's budget of $35 billion to about $30 billion and grow at a
moderate pace, the state would be out of fiscal peril in three
years.
Rutherford said he is not trying to issue threats or ultimatums
with his anti-borrowing message; rather he wants lawmakers to know
he is serious about ending the state's "borrowing addiction."
[Illinois
Statehouse News; By BENJAMIN YOUNT]
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