Illinois Treasurer Dan Rutherford said the state's lower bond rating cost it $70 million in additional interest for school construction last year. (Photo courtesy Facebook/Dan Rutherford)
By Eric Stock
BLOOMINGTON - State Treasurer Dan Rutherford said Illinois' shaky financial status is forcing everyone to pay more, including college students.
Rutherford said a study done by his office showed that the state's faulty credit rating meant that that it had to pay an additional $70 million in interest when it sold $800 million in bonds for school construction last year.
"That just says that the kids going to school at Illinois State (for example) now will have to pay more in their residence hall fees go to interest. So they'll have greater interest payments in the future when they get out of school and have their full-time job," Rutherford said.
Rutherford said inaction by lawmakers has consequences as Fitch Ratings warned that it might cut the state's bond rating after it failed to address its pension problem. Standard and Poor's lowered Illinois' bond rating in August a special legislative failed to produce an agreement on pensions.
Eric Stock can be reached at email@example.com.