The State Of Illinois Moves Toward Governmental Collapse

  • metta

    Posts: 39099

    Jan 19, 2010 8:17 PM GMT




    [quote]
    Legal experts say the protections of the federal bankruptcy code are available to cities and counties but not states.
    [/quote]

    [quote]
    The real fear is that the state could eventually be unable to plug its budget gaps with short-term borrowing. Illinois is still a long way from Arkansas during the Great Depression, believed to be the only instance in the past century when a state defaulted on its debt. But California was forced to seek a federal guarantee for its borrowing last year when credit dried up. It didn't get the guarantee, and state officials are now seeking a $6.9-billion federal bailout.

    While California has an even bigger budget hole to fill, Illinois ranks dead last among the states in terms of negative net worth compared with total expenditures.

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    [quote]
    While the Illinois Constitution protects vested pension benefits, that promise, like all the state's obligations, is only as good as its ability to pay. The Civic Federation warned lawmakers last fall that "there is mounting evidence that a judge could find the state is already insolvent. If the state is found to be insolvent under the classical cash-flow definition of insolvency, which is 'the inability to pay debts as they come due,' it is not only the pension rights of non-vested employees that will be in jeopardy. All the obligations of the state, whether vested or not, will be competing for funding with the other essential responsibilities of state government. Even vested pension rights are jeopardized when a government is insolvent."
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    http://www.chicagobusiness.com/cgi-bin/mag/article.pl?articleId=32910&seenIt=1

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    Jan 19, 2010 8:41 PM GMT
    uh oh. Although I did laugh at the one commenter who suggested closing all the state school, sending undergrads to community colleges and sending grads to get a job...
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    Jan 19, 2010 8:56 PM GMT
    Look at who has ran this state into the ground in the last 12 years.

    Governor Pat Quinn-Idiot who has no idea what he is doing.
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    Ex-Governor Rod Blagojevich-Criminal (Will soon be in prison).
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    Ex-Governor George Ryan-Convicted criminal (Currently in prison).
    george_ryan.jpg
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    Jan 19, 2010 9:05 PM GMT
    I have 4th cousins in IL. I will have to send this to them to see what they say. Last I heard, Virginia had great credit ... Thanks to the last two Dem governors.
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    Jan 19, 2010 9:37 PM GMT
    I worked for a not for profit funded by IL....lost my job! they are not able to make medicaid payments...currently about 9 months behind
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    Jan 20, 2010 7:58 AM GMT
    As someone who depends on the State of Illinois for my paycheck, I am more than a little worried. Until taxes are raised, this mess will never be solved. Illinois' income tax structure is a mess anyway, and is overdue for reform. I know I will not mindlessly check the Democratic candidate box in the election this fall. I am still waiting for the candidate who is willing to take the unpopular stand of cutting services and raising taxes; unfortunately none have stepped up yet. Maybe after the primaries.