Was Illinois Debt Disproportionately Penalized by the Market During the COVID-19 Pandemic?

January 13, 2022

Was Illinois Debt Disproportionately Penalized by the Market During the COVID-19 Pandemic?

Authors

This Policy Spotlight compares state and local borrowing costs in Illinois with those in other states, as well as with yields on other types of investments. The authors found that Illinois paid a relatively higher price than other states for borrowing during the COVID-19 pandemic. State and local governments in Illinois issued just over $27.3 billion in debt during the period the report covers. The authors estimate that these bond issuers face a total penalty of up to $144.9 million in additional interest costs per year over the life of the bonds issued during that time.


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Research Area: Fiscal and Economic Policy

Policy Initiative: none

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