State of Illinois is going belly up

Discussion in 'Politics' started by CaptainObvious, Feb 25, 2013.

  1. But hey, illegals get a drivers license. Ain't it great?

    CHICAGO | Mon Feb 25, 2013 11:54am EST

    CHICAGO Feb 25 (Reuters) - Illinois' pile of overdue bills could nearly triple to $21.7 billion in five years unless the state takes action to curb its public pension costs, a financial watchdog group reported on Monday.

    "Lawmakers need to adopt a long-term mindset and restructure the unaffordable pension systems that are keeping the state in its fiscal downspin," Lawrence Msall, president of the Chicago-based Civic Federation, said in a statement.

    The group's report said the amount of unpaid bills would be down from the nearly $35 billion it previously projected the state would face by fiscal 2017, largely due to cuts Illinois made last year to Medicaid, the healthcare program for the poor. But the $21.7 billion in outstanding bills owed to vendors, social service providers, hospitals and others in fiscal 2018 would be 2.8 times the $7.8 billion in forecast bills in fiscal 2013, which ends on June 30.

    Illinois stands alone among states in the scope and way it has institutionalized late payment of bills as a budget-balancing tool.

    Illinois also has the worst-funded state pension system at 39 percent, far below the 80 percent level considered healthy. Lawmakers in the Democrat-controlled legislature have been unable to rally around a plan that would reduce pension costs and labor unions have warned they will rely on strong protections for retirement benefits in the Illinois Constitution to fight changes.

    The Civic Federation said pension costs, including annual state contributions and payments on outstanding pension bonds, could gobble up nearly a third of state-generated revenue in five years. It added that the state must also prepare for increased Medicaid costs in the future.

    "We've reached a breaking point where the state will not be able to make its future pension payments without sacrificing basic government services," Msall said.

    Compounding Illinois' fiscal problems is the partial expiration in 2015 of income tax rate increases the state enacted in 2011, according to the report. The forecasts assume the rate increases will expire as scheduled, and the drop in revenue combined with burgeoning pension payments is projected to result in a $4.2 billion operating deficit in fiscal 2018.

    Deputy Majority House Leader Lou Lang introduced a bill last week that would make the personal income tax rate increase permanent, coupling the move with pension changes. That proposal joins other pension reform measures that the legislature is supposed to consider this year.

    Credit rating agencies have cited the partial expiration of the tax increases as a negative factor for Illinois, along with the state's nearly $97 billion unfunded pension liability and structural budget deficit. Illinois has the lowest ratings among states from Standard & Poor's and Moody's Investors Service.
  2. pspr


    Liberal states and cities all over are in financial ruin. If Obama and the city/state governments don't end their war on business they will never get the revenue to recover. Can you even believe Rham told the banks not to extend lines of credit to gun manufacturers?
  3. Looks like a chimp out at the mall.
  4. Hmmm. We live in Illinois, CO.

    I still see cops, firefighters, teachers, mayors, councilmen......what are you talking about?
  5. Politics is just a big shitty fight among the ugliest people over who gets the big chunk of pie.. Unions and their pensions, wow, they will shove all our grandmothers off the titanic before they will give in on their bennies.. Blacks will burn the cities, again, if they aren't fed/housed/worshiped/given license to kill whites..
  6. Tha's all well and good until somebody finally quits extending credit. Overdue bills is what the article was about. Billions of dollars in unpaid bills. That can't last at the state/city level.
  7. True, but we will get a bailout. We live in a too big to fail state. North Dakota defaults, fine. Not Illinois.
  8. Sad but true. Once again republicans will probably wet their pants and fall all over themselves to surrender the first time someone shouts at them. Like they did on the Sandy pork bill. $60 bill pissed away like it was nothing, all to shut up some fat fuck who had backstabbed them in the election.
  9. Well that's a hell of a way to run things. Just let it go until it blows up? And then you wonder why people aren't enamored with leftist programs. You can't complain about bank bailouts, and then say that's OK for a government to run things into the ground expecting the taxpayer to bail them out. You can't call the CEO's a bunch of unethical crooks, and then give a pass to politicians that run their business the same way.
  10. Tsing Tao

    Tsing Tao

    Precisely. That is what I meant earlier when I said emotional vs. logical.

    Logic always shoots holes in liberal emotion.
    #10     Feb 25, 2013