[Zakeet]

The problem with socialism is that eventually you run out of other people's money. -- Margaret Thatcher

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I have highlighted the most important parts of Ms. Mendoza's letter.

To make matters worse, Moody's and S&P have announced that they will downgrade the state's debt to junk status in 10 days. That will trigger a large increase in interest rates (hence interest expense), will require many pension plans and insurance companies to dump the State's obligations, will cause their bond prices to plunge, and will make it virtually impossible for the state, or its cities for that matter, to issue new debt.

[Noob1999]

It’s time for Dead Fish Rahm the almighty to put on his Superman costume and fly to the rescue. He’s the smartest schmuck in the world.

[ZOOKER]

First rule of holes is "stop digging".

Slash overhead. Furloughs and layoffs.

But no, I see "payroll" listed as one of the 'essential' services. Pensioners and current employees needn't worry, but contractors and healthcare workers should.

Another immediate action item: Sell unneeded assets to pay down debt. Land, mineral rights, office space, furniture, whatever. Looks like that's not happening either.

This is only the opening line of Illinois' gambit. What's next - pleas for immediate tax increase or Federal bailout, or both?

[Lurker]

Illinois Blue Cross hasn’t been paid in over two years yet they continue to pay claims. Illinois is still deducting premiums from the paychecks of State employees.

Don’t ask me how I know this, but I do.

L

[jy8z]

Bye Bye Illinois!!

[Edward.Fish]

Currently, more than 90 percent of Illinois' monthly spending is directed toward core functions of state government mandated by court orders, consent decrees, or state law including continuing appropriations.

Simple solution to at least part of that: repeal all state laws continuing appropriations.

[RKBA Democrat]

Trying to Care. Failing miserably.

Wait! That might be some caring?

Nope. Gas.

[RayChuang88]

The question now is whether Illinois will seriously consider a filing of bankruptcy for the entire state.

If that happens, there is a chance Illinois will no longer be a state and revert back to Federal territorial status, because a bankruptcy will result in the dissolution of state government.

[roadcat]

How to fix this? Well, if a Republican were running the state, non-essential services would be stopped and a lot of government employees let go, for a start.

But if a Democrat were running the state, there would be mass confiscation of private funds either in new taxes and fees, or outright thievery. Smart people would get out of Illinois pronto!

[weston]

Noticed their biggest debts have to do with HEALTHCARE.

Obamacare: bankrupting one state at a time.

[Fitzy_888]

They could sell the State Lottery to the Chinese for maybe $42 billion, keep the doors open another 7 months.