- A Whopper of an honor: Local company named top Burger King franchisee (11/15/17)3
- Federal jury finds surgeon Fonn guilty of kickback scheme (11/10/17)4
- Jackson elementary students try to help others with 'kindness boxes' (11/6/17)1
- Southern Illinois farmer's grapevines destroyed by dicamba; four years of work lost (10/29/17)2
- Aldi store reopens after renovations (11/14/17)3
- Chantelle Becking strives to make a difference through her family and community (11/10/17)
- Residents view pedestrian bridge as eyesore; city manager says it's designed to rust (11/13/17)8
- Cape County boy writes letter, hears from President Donald Trump (11/10/17)
- Medical marijuana may go to voters for decision (11/8/17)4
- Fourth-grade teacher Andrea Cox teaches students how to code, adapt to new technology (11/10/17)
U.S. Treasury to dodge default
WASHINGTON -- The Bush administration plans to shift billions of dollars of civil service retirement funds to non-interest-bearing accounts this week in a move to prevent the federal government from defaulting on the national debt.
The Treasury Department's action, announced Tuesday, would free up room for more government borrowing.
Peter Fisher, Treasury's undersecretary for domestic finance, said the juggling of funds could start today or Thursday.
The move is necessary because Treasury's request to extend the government's authority to borrow has been mired in a political fight on Capitol Hill. Lower than expected tax payments are putting a big squeeze on the government's cash flow.
Treasury Secretary Paul O'Neill has repeatedly asked Congress to boost the debt limit by $750 billion. The limit now stands at $5.95 trillion.
The juggling of federal retirement accounts will not harm federal employees' retirement next eggs, Treasury officials said.
Treasury dodged a default in April by temporarily shifting funds from the government securities retirement account.