State of Illinois and Chicago Pays Billions To Banks While Cutting Services To The Poor
By Ken Hare
Chicago Defender Staff Writer
In a familiar scheme where the rich get richer and the poor get poorer, Illinois and the City of Chicago continues to pay huge bank fees on complicated swap deals that were negotiated years ago – payments are in full and on time, every month! Six million per month in bank fees is what the state is paying to various banks, according to a new report released by the Refund America Project. The state of Illinois has already paid out a whopping $600 million for deals that will end up costing Illinois taxpayers up to 1.45 billion.
The City of Chicago has paid out a staggering $796 million in termination penalties and swap payments according to the report. This is equivalent to the recently passed $532 million tax increase and the additional CPS shortage and its quite clear that payouts on all this debt is not only fleecing Chicagoans at the city level, but the state level as well.
The sad news, none of this debt servicing is generating any new services, yet alone allowing residents to maintain any existing services. The bottom line – the state and the city have acted irresponsibly and taken from the poor to give to the rich!
Download the shocking full report here: https://rooseveltinstitute.org/wp-content/uploads/2016/01/Turned-Around-Jan-2016.pdf