US debt default could mean Illinois services cuts - KMOV.com

US debt default could mean Illinois services cuts

SPRINGFIELD, Ill. (AP) -- No one is certain what would happen in Illinois if the U.S. defaults on its debt.

But retirees fear losing their Social Security. Mayors are concerned about federally supported services like police protection. Analysts say credit could be tighter and more expensive.

President Barack Obama and Congress have been at odds for weeks about how much to cut federal spending before allowing the U.S. to borrow more than its current $14.3 trillion debt.

They must reach agreement by Tuesday. Otherwise, default would mean deep spending cuts that could affect programs such as Social Security and Medicare.

Jim Muschinske is a financial analyst for the Illinois Legislature. He says it's doubtful the lights will go out Tuesday. But consumers might borrow less, which would hurt the economy.

 

 

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