Posted on 06/16/2017 7:28:51 AM PDT by Stopthethreat
A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it's impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.
Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.
Ratings agency Moody's Investor Service earlier this month downgraded Illinois' general obligation bonds to its lowest investment grade rating, citing the state's growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets.
(Excerpt) Read more at cbsnews.com ...
Someone suggested something I am going to amplify on.
If bankrupt, it becomes a Territory again with only the following preserved.
1. Water and Sewer districts
2. County offices and departments of recorders, sheriff and registrar of deeds.
3. State DMV and title records offices
These people are all paid from the existing water and sewer bill structure with any shortfall by the Feds.
State and City governments are abolished and a new constitution needs to be voted on.
I am quite certain hilarity ensued upon reading my post. It was madcap
“They can raise taxes until citizens can't afford to pay them, then confiscate their property for resale to others at a discount.”Agreed. And that will work; until it doesn't. Government is a thin veneer and illusion of shared consent and legitimacy that is not easily shattered. But once it is, will have to be rebuilt over generations.
Chicago kills an otherwise blindingly red state.
I think something along these lines may have to happen.
IMHO, I don’t think the combine has any clue to the revolt that maybe coming...if basic services are shut down.
Earlier this year during my travels I had a chance to traverse southern Illinois a couple of times. Once cutting across east to west to McLean at old US 66, and famous for the Dixie Truck Stop. From there it was westward to Carthage by the Mississippi. On the return trip I crossed southern Illinois from Hannibal, MO and exiting at the Indiana line. What beautiful lush farmland! Gorgeous.
My trip was eyeopening. Southern Illinois was as much unrelated to Chicago as Heaven is to Hell. What pity I had for these wonderful people that their hard earned wealth was being confiscated to fill the slop trough of the Chicago gibs-me-dats. Unless someone told you, you would think you were driving through Tennessee or Kentucky or some other reasonable state.
These people need to break free from their oppressors. They have nothing in common with the northern part of their state. They need to secede.
Chicago is an awesome city filled with many good people unfortunately it is run by a mob of evil corrupt, pedophiles and gangs of soulless thugs that have taken the rest of the state hostage. We need a justice department that will go after the criminal human traffickers, illegal drug dealers, bookies, remove them from power and return the city to the good citizens.
We are at the tip of the spear here in Illinois and we need to fight the corruption and take our beautiful city back and jail those that have turned it into a criminal cesspool.
Evil triumphs when good men do nothing.
Most of the massive pension problems in that state is due to the issues in Chicago. And the crime wave in that city is driving people away--literally--in large numbers.
A pity, because Illinois have a lot of good people outside Chicago and under the right government, Chicago would be booming as the largest transportation hub in the country.
Why not a ‘Go Fund Me’ page.
Or the cure-all, a couple #hashtags at least.
“Chicago kills an otherwise blindingly red state.”
Pretty much the same situation in here in California. Last year there were about 1600 murders in the state. 500 of them were in Los Angeles County. And of the 52 counties in the state 35 of them had zero or single digits in this statistic. Also, in those 35 counties, you can get a CACCW permit for the asking. Funny how all of that is. Unlike Illinois though, 45% of California is “Federal Land” where there are virtually no people. But we’re better than Nevada where the Feds “own” 85% of the state’s land.
Illinois already filed for bankruptcy in the 1840’s along with Arkansas, Indiana, Louisiana, Maryland, Michigan, Mississippi and Pennsylvania.
Illinois government employees should be informed that their pensions could disappear under a state bankruptcy. And those public pensions are not covered by the Federal Government’s Pension Benefit Guaranty Corporation.
Thank you for the kind words about central and southern Illinois.
Your understanding is correct.
States don't want to do it but technically, each state has unlimited taxing power.
Probably a pretty tough sell telling a judge that you're broke when you actually "have access to all the money you need but you don't want to go there".
States also might consider selling some of the property they own. Lots of cash there.
Illinois just recently sold the Jim Thompson state office building in Chitcago. IIRC, it's been sitting empty and falling apart. I think that the state got about $400M for it.
There's plenty of money, just not enough to cover all of the crazy-azz spending the democrats love.
And East St. Louis. And Joliet...
Lots of places that cancel out the votes from more conservative southern Illinois much of whose residents have long since fled.
Jesus just left Chicago.
So should the rest of you.
Sooner or later a judge will direct the state to raise taxes to cover the shortfall. That is when you will see a stampede out of the state. Guess who will be left holding the bag? Middle class home owners will not be able to sell their homes so they will be the victums.
No. Arkansas has already been there. Twice.
Arkansas has a constitutional balanced budget and no deficit. They can’t spend more than the bring in.
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