A bailout plan for the Kankakee County Board was approved Tuesday after two local banks stepped up to assist the county's crippled budget. The Board approved borrowing $5-million to meet payroll demands into the new year.
People Bank and HomeStar Bank & Financial Services are putting up $3 and $2 million dollars, respectively, to help cover costs until the next tax cycle kicks in.
Substantial cuts to the county budget started Monday when county sheriff's police laid off 17 deputies and 20 jail guards. The layoffs resulted from a $3 million budget cut.
Board Chairman Mike Bossert "We are fortunate our local banks stepped forward in order to assist us."
The loans provide up-front cash in return for short-term repayments when the county collects property tax revenues. Bossert said it works much like a consumer payday loan.
An attempt to seek bids from financial leaders went know where. No one submitted a bid, likely because Moody's Investors Service downgraded the county's bond rating due to the negative financial situation. Bossert said the rating will improve if the county board follows a new board policy to build up its cash reserves.