Illinois comptroller raises red flag on borrowing.
The State of Illinois' total outstanding debt grew by more than a third in fiscal year 2003 to $51.7 billion, dramatically outstripping debt growth rates Growth Rates
The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures.
Remember, historically high growth rates don't always mean a high rate of growth looking into the future. in the previous four years, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. an annual report issued by State Comptroller The power of the Knesset to supervise and review government policies and operations is exercised mainly through the state comptroller (Hebrew: מבקר המדינה Dan Hynes. The state's annual debt service costs will increase by 93 percent, to more than $1.1 billion, this fiscal year compared to fiscal 2003.
The 33.6 percent increase in overall debt compares to 10.3 percent growth in fiscal 2002, 5.4 percent in fiscal 2001, 6.6 percent in fiscal 2000, and 1.7 percent in fiscal 1999, Hynes reported in the annual report on state bonded indebtedness produced by his office. In the past year, per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. general and special obligation debt (including principal and interest) has grown 150 percent, to $3,143, again exceeding growth rates for the previous four years.
"The pattern of increased debt is troublesome on a number of levels," said Hynes. "It is not just an issue of how much we are borrowing, but what we are borrowing for. Issuing debt to pay for long-term projects can certainly be financially prudent. But borrowing long term for short-term needs is dangerous. It goes back to one of the basic principles of family economics: you take on debt to buy a home or a car, not to buy groceries."
General obligation debt increased by $11.2 billion, or 146 percent, in 2003, the report said. The increase is mainly attributed to $10 billion of pension obligation bonds issued in June 2003. Proceeds from that borrowing were primarily used to reimburse the state's general fund for contributions made to the retirement systems for the last quarter of fiscal 2003 and fiscal 2004.
The report also makes note of recent changes in the state's bond rating. As of June 30, 2003, Illinois' general obligation bond rating was unchanged at AA by Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index
Standard and Poor's Index , but was downgraded from Aa2 to Aa3 by Moody's investors Services Moody's Investors Service
A leading global credit rating, research and risk analysis firm.
Moody's Investors Service
A leading firm engaged in credit rating, risk analysis, and research of fixed-income securities and their issuers. and from AA+ to AA by Fitch IBCA IBCA International Braille Chess Association
IBCA Institute of Burial and Cremation Administration
IBCA Integrated Business Communications Alliance
IBCA International Barbeque Cookers Association
IBCA Department of Interior Board of Contract Appeals . The state's special obligation bond ratings remained the same, ranging from AAA AAA: see American Automobile Association.
(Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. by Standard and Poor's for Build Illinois bonds to AI by Moody's for Civic Center bonds.
The report also reveals the debt service cost on debt issued as of June 30, 2003. In fiscal 2004, interest costs are expected to total $1.1 billion, including $986 million on general obligation debt and $116 million for special obligation debt. That compares to a total interest amount of $569 million in fiscal 2003, including $453 million on general obligation debt and $116 million on special obligation debt.
The report is available for download from the Illinois Comptroller's Office, www.ioc.state.il.us.