Deteriorating bond rating boosts Illinois' borrowing costs

Chicago – Illinois taxpayers will have to shell out an extra $551.3 million to cover the cost of borrowing because of the state's deteriorating bond rating.

That's according to a new report released Monday by the Civic Federation of Chicago.

The nonpartisan research group analyzed $9.6 billion in borrowing by Illinois over the last year.

It compared the interest being paid by other state and local governments with bond ratings comparable to Illinois' before Illinois' bond rating was lowered.

The group calls it a "catastrophe" for the state because the extra interest money could have been spent on other things.