Posted on 09/11/2019 9:34:34 AM PDT by george76
Republicans and Democrats sang the same song at the Statehouse after rapidly passing the largest budget in state history: "It's balanced."
Unfortunately, watchdogs couldn't offer much dissent in the moment. Lawmakers passed the 1,581-page document over the course of one weekend. In the absence of independent analysis, which takes more than a couple days to complete on a $40 billion spending plan, political rhetoric was rampant.
It was all eerily familiar.
In 2018, state lawmakers on both sides of the aisle claimed they had balanced the budget. But Illinois Policy Institute analysis had it out of whack by up to $1.5 billion
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And this year is no different.
The new budget signed by Gov. J.B. Pritzker June 6 is out of balance by up to $1.3 billion
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This means Illinois has not had a balanced state budget for 19 years straight.
And that's despite more than $1 billion in new revenue for the state's operating budget.
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unbalanced budgets mean at least one of three things must happen in the future: spending cuts, tax hikes or new debt. You can bet more tax hikes and debt are around the corner to pay off deficit spending.
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The state has a spending problem. And that's led to a debt problem, too. Moody's Investors Service pegs Illinois' pension debt at more than 600% of state revenues. That's the highest level of any state in history
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Band-Aid fixes and spending-heavy compromises were rampant. And now it's all coming home to roost.
One small example: Both of those former governors currently collect annual state pensions of more than $160,000 annually. That's largely a product of the automatic, compounding 3% annual pension benefit increases Thompson signed into law in 1989.
(Excerpt) Read more at dailyherald.com ...
They’re lying to keep their Ponzi scheme going.
Eventually it will fail spectacularly.
NO FEDERAL BAILOUT FOR PROFLIGATE STATES!
Unlike the federal government, states can’t monetize their debt by printing money and increasing price/wage inflation.
They are like you and me. If it gets too crazy, the debt service is greater than the money’s received. Then you are screwed - but you are actually screwed way before that happens.
They may have to create some sort of heavy welfare work requirement and clean up the corruption if they want to survive.
Taxpayers better flee faster.
Any taxpayers still there when IL goes bust will be stuck with the bill.
Economics and money management skills are not high on the communist priority list....just sayin’. It does require some basic mental skills.
They should offer early buyouts of the state pensions. They may have to negotiate the buyouts and it will be a big cash out deficit year. But it will reduce the liabilities. Another idea I had was to sell the pensions to private investors. Again, something negotiated would have to be done.
(Maybe impossible ideas)
Why? Chicago.
That will be a major boiling point down the road. Ultimately the large urban cities will come to the feds to bail out their pension obligations. The smaller states will rebel at the idea they must pay more taxes to subsidize someone from L.A. and Chicago in a retirement lifestyle they themselves can never hope to enjoy.
These bloated pensions for “public employees” are just ridiculous.
Bad government. Out of control government. Corrupt government.
It isn’t even considered.
One benefit of any future financial crisis is that it will quickly crush the governments and up-end the political systems of deep-left places like Illinois/Chicago, New York, California.
Much like the Soviet Union, Its the only method of reform possible when politics do not allow it.
Call it cloward-piven for Conservatives.
A smart conservative politician will get ahead of this, and plan their response early for when this happens - because it IS going to happen. Obama's 2009 "stimulus" was really just a bail-out to State and local governments. Don't let it happen again.
Simple answer?
They steal and piss away more than they can extort.
I’ve got it! Take over the power utilities, then pay off the debt with the utility customer’s payments.
she needs to be careful of gifts of firewater and blankets with smallpox...
Illinois does balance their budget because they don’t want to. They hope the debt will so great America will take it over and they can start over. Sorry it’s your debt you own it not me.
Reference is made to several posts from 1 to 16 on this thread involving various ideas.
Clearly, these Illinois voters keep electing crooks. This may be because there are few non crooks left in Illinois. Anyway, there is not but one solution for Illinois and that is Bankruptcy. The voters voted these crooks in and the voters will end up paying...……….BIGTIME !!!
In bankruptcy, a federal judge, hopefully with a brain, will FORCE very painful fixes on the Illinois voters.
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