Illinois lawmakers are considering a longshot Hail Mary pass to try to fix the state’s crippling pension debt problem.
An association of state university workers has proposed a $107 billion bond issue which would by far be the largest bond sale ever attempted by the state. That money could then be invested, with the idea that the rate of return would allow Illinois to pay down most of its pension debt in less than 30 years.
But critics say Illinois’s poor credit rating means it will cost more to pay back that debt and if the stock market takes a hit, the state won’t make as much profit on its investments, which could make a bad situation worse.
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