The following letter written by Professors Jeffrey Brown and George Pennacchi appeared in The News Gazette on Sunday, March 6, 2011 at the top of the Commentary section.
Will Champaign Gamble with Borrowed Money?
By Jeffrey R. Brown and George Pennacchi
The Champaign City Council is considering the use of pension obligation bonds to help address its budget deficit. Advocates genuinely appear to believe that borrowing will reduce the city’s deficit and thus reduce the need to cut services to balance the budget.