The governor says the new pension law is already paying off for Illinois taxpayers. Gov. Pat Quinn says this is from the sale of $350 million in construction bonds, priced to yield 5.65 percent, which will cost the state $20 million less over the 25-year life of the bonds than a comparable sale in April. He says this kind of thing is to be expected.
“If we did something really hard, and erased a $100 billion liability, that would help our state economy, help our jobs, help our opportunity to save taxpayers money, so I think that’s a very important thing,” he said.
The pension law may not stand up in court, and the 2011 income tax increase expires at the end of next year – in the middle of the next state fiscal year – so the state budget is still a foggy situation. Quinn says he’ll be putting together a budget proposal shortly, but for now, he wants to focus on the holidays.