After all the shots I’ve taken at Crain’s over the years, I have to say it was pretty big of them to ask me to write something for them. Linked here is my article criticizing the new borrow scheme for Illinois municipalities that transfers ownership of future public income to bondholders.
Too late for Chicago. Just today, the Chicago City Council approved $3 billion in bonds structured that way.
Some alderman worried that it may turn out like the the despised deal to sell city parking meters.
No, it’s worse. That’s because there’s a good chance the parking meter deal could be voided in bankruptcy, as we explained in an earlier article. The very intention of this new structure, and the reason it garners lower rates, is to be bulletproof in bankruptcy.
Anyway, I may be writing further for Crain’s. Naturally, that means I’m part of the establishment now. I’ll be be standing up for the man and explaining how The Machine and Springfield have our problems under control. Nothing a few tax increases won’t fix.
Yeah, and I’ll be leading off for the Cubs if it goes to game 5.