Lost in the reporting on last week's blizzard was the fact that the Illinois Supreme Court "granted the state's request for a temporary stay against enforcement of a
lower court decision invalidating the state's $31 billion capital
budget and the funding streams that support capital borrowing," reports Bond Buyer.
The state will submit its request for the Supreme Court to review the case on Feb. 14.
More from Bond Buyer:
Allowing the lower court
ruling to take effect would "wreak havoc" on state operations and
finances, the attorney general's office warned Friday in its request for
a temporary stay.
The Illinois Appellate Court last week struck down the 2009 law that
established the funding streams to repay borrowing for the public works
program. That action, in turn, voided other pieces of legislation
related to the capital program including one that appropriated the
actual funding for projects.
The court ruled that the legislation violated the state constitution's
single subject clause. The action reversed a lower court's dismissal of
the lawsuit filed by Wirtz Beverage Illinois LLC in August 2009 shortly
after Gov. Pat Quinn signed the law. Wirtz supported the state's request
to stay enforcement.
The state sold more than $3 billion of taxable general obligation Build
America Bonds to support its capital budget last year and planned to
sell about $1.5 billion of debt for capital projects this spring.
Another $2.5 billion of bonding was planned for fiscal 2012 depending on
the availability of revenues that flow to the capital projects fund.
Most of those revenues - which come from expanded gaming, and tax and
fee increases on motor vehicle titles, license plates, liquor, candy,
and personal hygiene products - were invalidated by the appellate
And hat tip to John Bredin who mentioned it last week in a Tattler comment.