Hole-digging Chicago style

The more things change . . .

Mayor Rahm Emanuel is pitching Wall Street investors on the latest city borrowing plan, a $1.2 billion package that, like previous versions, pushes hundreds of millions of dollars of debt into the future at higher costs to taxpayers.

The mayor is continuing scoop-and-toss borrowing, which involves paying off old bonds with the proceeds from new ones — a practice akin to taking out another mortgage on a house to pay off the old mortgage, kicking payments down the road.

An Emanuel budget spokeswoman said this year marks the last scoop-and-toss bond issue.

And I believe her, don’t you?

via Six years after Daley, Emanuel still using high-cost borrowing practices – Chicago Tribune

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