This article originally appeared in Crain’s Chicago Business. Click here to read the full article.
By Ike Brannon and Michelle Hanlon
It’s become increasingly clear that Congress will need to provide some sort of assistance to the bereft government of Puerto Rico. The island has been in recession for a decade and holds $72 billion in debt it cannot fully repay; its pension plan is nearly bankrupt.
While there’s widespread agreement that something must be done, there’s not as yet any unanimity as to what this something should be. How Congress resolves this issue should be watched closely by the taxpayers of Illinois, because it could end up worsening the state’s finances.