Posted on 11/18/2014 3:40:41 AM PST by george76
Pension debt in the Land of Lincoln is a big problem. So big, in fact, that it would take three years of a complete government shutdown, during which the entire general fund went toward pensions, just to break even. No funding for schools, no money for public safety and nothing for health care and human services.
Illinois’ unfunded pension liability grew to more than $111 billion this year, according to official estimates. That’s a $48 billion increase just since 2009.
...
That $111 billion pension shortfall means the state now has only 39 cents of every dollar it should have in the bank today to pay for future benefits. In the private sector, these funds would be deemed bankrupt.
...
Illinois politicians have looted and mismanaged public-employee pension funds for decades.
(Excerpt) Read more at zerohedge.com ...
But, but, but...how could this happen? It somehow must be the fault of the Republicans! /sarc
Never fear, the taxpayers will bail them out as usual
From the Land of Lincoln to the Land of Stinkin’.
I can only imagine the shape NJ is in regarding pensions, as well as many other states.
At what time do we charge the political class with just plain looting?
Maybe neighbor Gov. Scott Walker could charge them a modest consult fee in expertise on how to run a balanced state budget. Dumping Quinn was a good first step.
Can’t they just enslave future generations in perpetual debt to pay for their wants today?
Apparently crooked means something and has consequences. Maybe in 1934 if the congress had not infringed on the second amendment the crime bosses would have had a greater means to do each other in.
Alas the Thompson got a bad rap instead of the gun that cleaned up Chicago. Too bad. Another prime example of bad government policy achieving the exact opposite of that desired.
The new Governor will get the chance to prove he’s not really a Democratic contributor. My guess is that he will govern like Arnold did.
But...I thought that the recent state tax hike (temporary) was to put them on track to shrinking this. Obviously, more taxation is needed. This demonstrates a typical liberal adage; when spending money/taxing fails, it does so because it wasn’t “enough”.
If this doesn’t fit the classic definition of a “death spiral”, I don’t know what does.
Detroit solution - no other way.
While strong investments in 2013 are expected to help state pension plans recover, the impact will be muted; most state pension plans smooth out gains and losses over time—typically five years—which means that the investment losses from 2009 won’t be completely incorporated into plan funding data until 2013, and 2013 investment gains won’t be fully acknowledged until 2017....is there REALLY any wonder why the fix is in for the Stock Market? EVERYONE with pensions, investments or simply 'retired' has a dog in this fight but no one is really willing to stick their neck out. That's why we're entreated to a fusillade of propaganda on the health of the housing and stock markets (house of cards built on emotional support and wet-ink treasury certs).
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.