Cook County seeking $200 mil. loan

The Chicago Sun-Times reports:

Twelve weeks ago, Cook County chief of staff James Whigham -- running the county's day-to-day operations -- flatly denied the county was in such dire financial straits that it would have to borrow money to make ends meet.

Friday, things changed.

For the first time in more than a decade, Cook County must borrow to help pay the bills.

According to an ordinance delivered to commissioners, they will be asked Wednesday to allow the county to seek a $200 million loan.

"We were arrogantly told everything was OK," Commissioner Mike Quigley said. "It wasn't."

The request from county chief financial officer Thomas Glaser outlines terms that call for the county to pay the loan back over 18 months, at 10 percent interest.

That will allow for "timely payment of general county expenses," Glaser's request says.

Multiple county contractors have been grumbling in recent months about delays in being paid.

Glaser's request cites delays in the county receiving its share of state funds for general county and hospital expenses.

If approved, the $200 million would represent about 6.6 percent of the county's $3 billion budget.

I guess Cook County is having problems right in the middle of a national economic expansion.What's going to happen when a recession hits? What's going to happen when the baby boomers start retiring in 2008? How ironic,a county that has rather high sales taxes and property taxes is having financial problems.Would you really want to be a muni bondholder of Cook County?