The Clock is Ticking to Prevent $870 Million Payout to Wall Street in November
This week the world is turning its attention to Philadelphia and the Democratic National Convention. Last week it was Cleveland and the Republican National Convention. As Illinois representatives focus their attention on the future of our country, we can’t lose focus on the future of Illinois and what is happening right here in our state.
Our entire state, from Carbondale to Rockford, is still feeling the impacts of the budget impasse, as the stopgap budget is not a solution to the dire circumstances many communities are facing. All across Illinois, public universities, social service agencies and the people they serve are still reeling from the impact of the budget impasse.
In five days, Governor Rauner has an opportunity to stop things from getting much worse.
On November 27th, six letters of credit between the state of Illinois and a small set of Wall Street banks will expire. If these letters of credit are not renewed before November 27th, Illinois will have to payout $870 million to Wall Street. In this time of crisis, it should be clear to everyone that our state can not afford a massive $870 million payout. We can avoid this payout if Governor Rauner asks for the letters of credit to be renewed, and he can do that next week.
Governor Rauner has to make a decision. He must choose between unnecessarily giving away our dwindling state resources to banks like JPMorgan Chase, which have continued to profit off Illinois during this devastating budget impasse, and fulfilling his responsibility to support our state’s institutions of higher education and the programs that serve our most vulnerable populations. Governor Rauner can choose to put that $870 million to work in communities across our state by renewing the letters of credit.