Fri April 29, 2011
Quinn: Approve borrowing or lose local tax revenue
Illinois Gov. Pat Quinn wants to suspend about $1 billion in state income tax payments to cities and counties unless he gets legislative approval to borrow billions of dollars to pay overdue bills.
Quinn floated the plan in draft legislation he showed lawmakers earlier this week. It was first reported by the Chicago Tribune.
Budget spokeswoman Kelly Kraft says the Democratic governor hopes city halls will oppose the idea and local officials will pressure lawmakers into approving the massive loan.
Quinn wants approval to borrow $4.75 billion to pay down a huge backload of debts.
If lawmakers balk, he wants authority to withhold about $100 million a month of income tax revenue the state shares with local governments - payments from February through December.