* An entrance fee for state parks shouldn’t be surprising, since Gov. Blagojevich has never been to a state park…
Gov. Rod Blagojevich’s proposed budget could target everyone from people who use state parks to big businesses.
Although the final touches are still being made to the governor’s latest spending proposal, officials acknowledge they’ve considered imposing entrance fees at state parks as a way to balance the budget in tough financial times.
Word’s going around that the new budget could eliminate nearly all General Revenue Funding for the Dept. of Natural Resources. More at Illinoize.
* Also, there’s bad news on the capital bill front…
State officials haven’t approved a major capital construction plan since 1999, the first year of former Gov. George Ryan’s administration.
Whether they pull it off this year — amid continuing, maybe growing, acrimony in Springfield — is anybody’s guess. But even if they manage to clear their political obstacles, they may an emerging financial one. As Stateline.org reports, bonding — the type of borrowing the state must do to support a capital plan — is getting more expensive.
And here’s the Stateline story…
The problem isn’t with cities or states issuing the securities but with the insurance carriers that promise to pay interest and principal on municipal bonds in the unlikely event that states or local governments default. In recent years, the insurance carriers also began guaranteeing securities based on car loans, commercial real-estate deals, credit card debt and mortgages, including subprime loans that are now defaulting.
The bad loans are threatening to cause securities ratings firms such as Moody’s Investors Service, Fitch Ratings Ltd. and Standard & Poor’s to drop the credit rating of the insurers, which in turn would drop the credit rating of bonds they insure.
A ratings drop would drive up costs for state and local governments, forcing them to pay higher interest rates to borrow, or could keep investors away in a time of tight credit.
The story has numerous examples of failed bond sales, including this one…
The Port Authority of New York and New Jersey, which operates the region’s airports and runs the World Trade Center, got a rude shock this week when it tried to get buyers for a special type of bond whose rate is set at frequent auctions. They found no takers.
Bottom line: Even if there is an agreement on expanding gaming to pay for a capital bill, there might be a big problem selling the bonds.
* More budget stuff, compiled by Kevin…
* Fiscal feud
* Blagojevich. Budget. Brick wall. Bang head
* Tribune: ‘My fellow deadbeats . . . ‘
* The danger in big promises
* Lawmakers face budget puzzle
* Budget cuts threaten Pilcher programs
* Local officials say politics aren’t in our favor
* Andy McKenna: Talk of change, but not much walk