IL Finance Authority to Issue $115 Million in Bonds to help pay Vendors for Critical Services

The Illinois Finance Authority took steps on Thursday to speed funds to local emergency call centers and providers of essential state services that are in dire need of cash due to the state's ongoing budget impasse.

A stalemate between Republican Governor Bruce Rauner and Democrats who control the legislature has left Illinois without a budget for the fiscal year that began on July 1. While various court orders and ongoing appropriations have kept money flowing to some services, bond payments and worker salaries, other items have not been funded, prompting Rauner's office to enlist the IFA's assistance.

The IFA board agreed to move forward with a plan to pay vendors for essential state goods and services through the authority's issuance of up to $115 million of bonds backed by Illinois' moral obligation pledge. The IFA would pay off the bonds through a state appropriation based on the amount of money Illinois owes the vendors. Read more by Karen Pierog at Reuters.