Illinois comptroller raises red flag on borrowing.(News & Numbers)

The State of Illinois' total outstanding debt grew by more than a third in fiscal year 2003 to $51.7 billion, dramatically outstripping debt growth rates in the previous four years, according to an annual report issued by State Comptroller Dan Hynes. The state's annual debt service costs will increase by 93 percent, to more than $1.1 billion, this fiscal year compared to fiscal 2003.

The 33.6 percent increase in overall debt compares to 10.3 percent growth in fiscal 2002, 5.4 percent in fiscal 2001, 6.6 percent in fiscal 2000, and 1.7 percent in fiscal 1999, Hynes reported in the annual report on state bonded indebtedness produced by his office. In the past year, per capita general and special obligation debt (including principal and interest) has grown 150 percent, to $3,143, again exceeding growth rates for the previous four years.

"The pattern of increased debt is troublesome on a number of levels," said Hynes. "It is not just an issue of how much we are borrowing, but what we are borrowing for. Issuing debt to pay for long-term projects can certainly be financially prudent. But borrowing long term for short-term needs is dangerous. It goes back to one of the basic principles of family economics: you take on debt to buy a home or a car, not to buy groceries."

General obligation debt ...