Posted on 02/22/2011 12:50:44 PM PST by FromLori
US - Illinois, which plans to sell $3.7bn of pension bonds next week, may seek a federal guarantee on retirement-system debts if its unfunded liabilities can’t be eliminated, according to budget documents.
Illinois's pension plans have an unfunded liability estimated at over 60%, the documents show. Governor Pat Quinn disclosed the potential need for a federal guarantee of pension debt in his $35.3bn general-fund budget on February 16, without going into specifics.
(Excerpt) Read more at globalpensions.com ...
That would be dominated by CHICAGO’s pensions.
They should have attempted this in 2009.
It won’t fly now.
They bankrupted their own state, now they want to bankrupt the country? Hey, we’re already strapped here in California due to the greedy government unions. To hell with Illinois!!
Hopefully this will go NOWHERE in the US House.
I thought Texas was supposed to be in good shape? Here it’s worse off than CA in percentage terms.
This is a lousy proposal, and the federal guarantee is beyond the reach of the Obama White House now. Too late.
Sorry!
ML/NJ
What I see happening is eventually all these pension plans will roll into social security. It won’t make the problem go away but will take the load off the states. Then the fight will be with the feds over ira/401k funds, or the stealing thereof.
This is an implicit financial liability to every other state in the union. How can I be made liable for the debt incurred in another state by representatives I cannot vote for or against?
Is there a Constitutional lawyer in the house?
How in the world can such a relatively small state that takes in so much darn money from tourism be in such dire financial straits? Something is seriously wrong there; that makes no sense to me at all.
I imagine the same way bonds for bridges are backed. I assume they are anyway. I’ve never messed with state or local bonds.
I doubt the Federal Government can legally back up a state bond.
No raw numbers really don’t explain a chart. Tx is fine, and we will handle our problems without:
1. Federal Guarantee on pensions.
2. Not caving in and passing an income tax.
3. Without touching our 10-12B rainy day fund.
Simply Texas state workers including Teachers have no right to strike. If they try, then they are fired.
Governor Perry has all ready ordered a 10% across the board cut in spending. There are so many republicans here that if the Rats leave we will just conduct business as usual.
We are a right to work state, unions are just another way for folks to waste their money on useless crap.
What the Unions and their friends in Washington want to do for the Public Employees is to NATIONALIZE (does the Socialist Workers’ Party ring a bell?) the Union “rights”, so ALL American Taxpayers will be forced to fund the golden benefits and exhorbitant salaries of INCOMPETENT UNION MEMBERS who can’t be fired, and who couldn’t survive on Merit!
Don’t worry about Texas. It will have fixed its budget crisis long before California or Illinois can even figure out how
much they owe, much less develop a plan to solve it.
I can’t figure out how any state with an income tax could even have a budget deficit at all. And some of these states have a state sales tax too. unbelievable.
Texas Slashes Budget To Close Budget Gap
Republicans have fielded their largest House majority in Texas history ...
That would be the spark that starts an insurrection.
They’ve been trying to peddle these bonds for a couple of weeks now. Apparently no-one wants to buy them. And it sounds like the State of Illinois doesn’t have confidence themselves that they can pay off these bonds. It’s better to hit the wall of reality sooner than later. The Federal Government better not go along with this. Illinois made their own bed, they can lie in it.
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