Posted on 04/28/2020 10:09:50 AM PDT by Zenyatta
Illinois could soon be the first state in history to have its bonds rated as “junk.” Last month, both Moody’s MCO and Standard & Poor’s downgraded Illinois debt to just one notch above junk status.
Last week, the Illinois State Senate President Don Harmon (D-Chicago) wrote a letter to Congress requesting a $41.6 billion bailout. Critics balked.
In many ways, Illinois may have already crossed the Rubicon.
Our analysis at OpenTheBooks.com shows that an Illinois family of four now owes more in unfunded pension liabilities ($76,000) than they earn in household income ($63,585). In a state of 13 million residents, every man, woman, and child owes $19,000 — on an estimated $251 billion pension liability.
(Excerpt) Read more at forbes.com ...
Maybe they can borrow some money from California.
How in the h-e-double toothpicks does a state government have that many people making over 100k????
I mean 3x 100k in that chart! Holy heck.
Holy moley.
The bailouts will get expensive if we go down that road.
I heard deBlasio on one of the Sunday shows, say he needs $10 billion from the federal government. He estimated he’s short $7 billion due to reduced tax revenues from the economic downturn, and about $3 billion in additional direct expenses due to the virus.
And remember that every city in America, and every state in the union, is going to have severe budget problems, due to the economic decline caused by shutting down the economy.
So will 50 states and hundreds of cities and towns have their hand out, going to Washington, begging for their share of the bailout money?
Just based on back of envelope calculations, we could easily spend another trillion dollars plus on bailouts to states and cities, if we start down that road.
And with regular people out of work and businesses closed by edict of their governor, taxes will be raised to astronomical proportions.
Why does it take so many employees to do so little?
How many Illini does it take to screw in a lightbulb?
You’ve been robbed.
Of course they NEVER think about spending cuts. Can’t do that!
“The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people”
I seem to remember some Governors reminding the President that they were in charge of the interests of their states. So, let them borrow the funds to take care of their interests. That’s federalism.
Here in NY, the teachers union with 400K members, is a powerful force in state politics. They and their families all vote, and they all vote leftist, and for more money for themselves. NY State’s education budget per student is $23K/year, the highest in the nation - 89% above average.
That’s how it works.
This is what happens when the Dems “negotiate” the contracts for the state employees’ union and in return receive tens of millions in reelection donations.
That average household income of $63k was probably before all the recent private sector layoffs, furloughs, and pay cuts. So, I’m sure the gap is much wider now. So far I haven’t heard of Illinois state employees having any cuts or furloughs.
Tennessee is doing quite well because we don’t rely on a state income tax for revenue.
There was a story a while back how a education union rep substituted for one day and became eligible for a huge teacher pension. The Illinois Supreme Court has ruled that all state pensions must be paid, no matter what. So taxes go up, services go down and Illinois public pensioners live well.
Illinois pensioners are millionaires. Their pensions are guaranteed by the state. And the citizens are not allowed to vote for change. The Illinois Supreme Court has ruled that they get every dime including 3% increases for life. And their are more pensioners created every day. And this is not just the state. Its the schools and the city. And especially the politicians. You can go from one government to another and your pension both accumulates and you can have two pensions as well. Politicians can retire with very few years. If Illinois gets bailed out by the feds it will be like Indiana and Wisconsin paying for Illinois pensions. The biggest kicker is that pensioners DO NOT pay Illinois state taxes. Even if they make hundreds of thousands of dollars per year. And a huge amount do.
In a word, UNIONS. IL has been making expensive concessions to the unions for years. All that 'generosity' has now come home.
Good luck IL, you'll need it.
Memo to President Trump: This is EXACTLY why Nancy Peolsi's progressive dream of the Federal Government bailing out cities and states must never become law.
How much per day does a conventional war cost?
There, fixed it.
No kidding! RETIRED people still pulling in pensions >$300k . That’s insane
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