Posted on 03/01/2010 1:25:24 PM PST by GreaterSwiss
Don't go wobbly on us now, Ben Bernanke Barack Obama's home state of Illinois is near the point of fiscal disintegration. "The state is in utter crisis," said Representative Suzie Bassi. "We are next to bankruptcy. We have a $13bn hole in a $28bn budget."
The state has been paying bills with unfunded vouchers since October. A fifth of buses have stopped. Libraries, owed $400m (£263m), are closing one day a week. Schools are owed $725m. Unable to pay teachers, they are preparing mass lay-offs. "It's a catastrophe", said the Schools Superintedent.
In Alexander County, the sheriff's patrol cars have been repossessed; three-quarters of his officers are laid off; the local prison has refused to take county inmates until debts are paid. Florida, Arizona, Michigan, New Jersey, Pennsylvania and New York are all facing crises. California has cut teachers salaries by 5pc, and imposed a 5pc levy on pension fees.
The Economic Policy Institute says states face a shortfall of $156bn in fiscal 2010. Most are banned by law from running deficits, so they must retrench. Washington has provided $68bn in federal aid, but that depletes the Obama stimulus package.
(Excerpt) Read more at telegraph.co.uk ...
This mega-recession won’t have completed its cleansing effects until all levels of government seriously rein in their pay and benefits packages to the majority of their employers. We ain’t nearly there.
The entire country is going to go the disastrous Chicago way, with 0bozo and his bunch of Chicago gangsters at the helm.
Keep electing those Democrats.
Here in Maruland we had a surplus under Ehrlich, now two tax raises later ,we are in debt.
Holy Cripes!
I knew Illinois was in trouble - but I never realized it was THAT frickin’ bad!
It looks like the most obvious ways out of this are to start putting people on the tax rolls instead of trying to remove them
AND
start doing some really dramatic cuts in state spending
I’m not an Illinois resident - so I admit I’m a little pressed to say where those cuts should be but in a state like Illinois, they shouldn’t be too hard to find.
WHAT?!?
Do you mean to say that over-taxing, over-spending and over-regulating when mixed with complete and total corruption, fraud and abuse eventually leads to bankruptcy???
What’s next, that global warming isn’t real??!!??
Everything I have believed in has just been shattered!
(Dripping with sarcasm)
Hundreds of thousands of state pension paychecks. It had to come to a stop at some point.
OH come on Illinois ,, Pull it together.. 13 B?
Is that all?
I wonder if the bueracracy will be cut or will they just keep trying to cut teachers, firefighters and cops?
That's part of the solution. The other part is to end entitlements at the Federal and State levels. When these two things happen, most of the other problems facing the United States will become self correcting.
public employment systems are bloated, overpaid, and with ridiculous benefits and retirement packages (on average)
few citizens outside of Fortune 500 corporations enjoy anything close to what is standard for most govts in the USA, and WE are paying for it all (well those of us who actually pay income taxes etc.)
for the nearly bullet-proof job security of most public sector jobs, people should be paid less not more -— public school teachers enjoy 3 months off per year, and a 3/4 type of salary would be perfectly appropriate
the public sector unions are way out of control and if every state budget could be properly scrutinized in a rational and objective manner, countless billions could be saved for the TAXPAYERS.....
I put going into default at a higher probability than “cleansing”.
Wouldn’t you iknow the state of Iloinois and Chicongo are controlled entirely by democrat crooks. Goblowabitch and Ryan a RIMO had to take care of their buddies.
" Rep Suzie Bassi. 'We are next to bankruptcy. We have a $13bn hole in a $28bn budget.' (IL)"
did not match the published title at the source and had to be changed.
Please do not alter any published titles. Thank you.
Provisions need to be stocked now!
In the state of Illinois, education and public safety jobs ARE part of the welfare rolls.
One thng to say “Legacy Pension Obligation”
Agree completely. By way of comparison, I work for a global partnership. Big company you’ve no doubt heard of. Around raise time we always hear about how tough the economy is etc...standard stuff.
This year, the partners themselves took a 10% pay cut. For the first time in my 10 years here, I finally believe them.
When the bueracracy starts getting cut - and the teachers, firemen, cops, garbage men don’t - that’s when I’ll believe they are serious. Not a second before.
I remember my father commenting on public pensions that were being promised in the ‘70s and ‘80s, “This is going to come back and bite us in the ### but the politicians don’t care because they won’t be around to pick up the pieces.”
Anyone who has ever been in the way south west of Illinois knows that area has been short changed with govt funds cause the vast majority has gone to fund Chicago’s fraud, welfare and waste.
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.