Quinn wants to borrow another $900 million to keep state afloat

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SPRINGFIELD -- Gov. Pat Quinn wants to borrow another $900 million to keep state government afloat through the lean winter months.

With the state already months behind in paying its bills, Quinn said the traditional slowdown in tax collections between November and February could cause the nettlesome backlog to grow even larger.

"It's a cash-management device," Quinn told reporters following a meeting in the Capitol with legislative leaders.

In order for the latest borrowing plan to move forward, Quinn must have the support of the comptroller and treasurer, who already have signed off on more than $2 billion in borrowing.

Sending the state further into debt is viewed as a stopgap solution while Quinn tries to convince lawmakers to back his plan for an income tax hike. No votes on raising the income tax are expected until after the Feb. 2 primary election.

Republican leaders who were briefed on the latest borrowing plan Tuesday said borrowing money to stay afloat is not a prudent long-term strategy.

"It certainly adds some pressure down the road," House Minority Leader Tom Cross said. "I think the borrowing is going to catch up to us real soon."

Cross and Senate Minority Leader Christine Radogno say voters want to see the state cut more spending before being asked to pay higher taxes.

House Speaker Michael Madigan, D-Chicago, however, said Quinn has few other short-term options.

While most of the money will be used to pay normal operating bills, about $200 million will finance a scholarship program benefiting 137,000 low-income college students. Lawmakers recently voted to earmark money for the Monetary Award Program, but left it up to Quinn to determine where the money would come from.

"We have an absolute commitment to make that happen," Quinn said.

Comptroller Dan Hynes, who is challenging Quinn for the Democratic nomination for governor in 2010, said Quinn should outline a comprehensive plan for helping the state emerge from its fiscal meltdown.

As for whether he will sign off on the borrowing plan, a Hynes aide said no formal paperwork had been submitted for review.

"We'll weigh in on it when we see it," said Hynes spokeswoman Carol Knowles.

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