Could Illinois be the first state to file bankruptcy?

[birddog]

Have been living here (Illinois) for the last 25 years and watching this evolve. The same man (Mike Madigan) has been the Speaker of the Illinois House for 30 years. That is not a misprint. He has controlled the budget purse strings and been overseeing this mess at the cost of the citizens but the benefit of the Democratic party for all that time.

Some of the stunts they have used to pass expenses along to the future are mind boggling. And as the States debt has grown to this massive amounts there has been zero effort to reverse course. (A new Republican Governor has tried but Madigan has completely stymied his efforts.)

Bankruptcy is not only unsurprising, it was predictable. And possibly even part of the plan.

You are correct. I know the Governor, and he is trying, he might make progress if he gets reelected and madigan is not there.

[pragmatic]

You are correct. I know the Governor, and he is trying, he might make progress if he gets reelected and madigan is not there.

Have not heard any rumors of Madigan retiring. And the way he has the system rigged he certainly can't get voted out.

[birddog]

Have not heard any rumors of Madigan retiring. And the way he has the system rigged he certainly can't get voted out.

He's quite old, and according to an inside source, he is not as mentally sharp as he was. Who knows?

[suds00]

i'm a retired state of illinois employee.i'm concerned

[suds00]

madigan's not that old.

[birddog]

madigan's not that old.

Madigan is 75, and he has practically ruined the state.

[Peter1469]

i'm a retired state of illinois employee.i'm concerned

A state bankruptcy would be very bad for retirees.

[Peter1469]

Don't Bail Out Failing States Like Illinois


Here is an argument for letting the people of Illinois absorb the costs associated with electing leaders who spent them into oblivion. I agree. Federal tax dollars should not be spent to bail any state out. Or any corporation or bank.

"I don't know what part of 'We are in massive crisis mode' the General Assembly and the governor don't understand," said Comptroller Susana Mendoza, a Democrat. "This is not a false alarm. The magic tricks run out after a while, and that's where we're at."

Politico sums it up nicely: "Illinois has compiled $14.6 billion in unpaid bills. It's running a deficit of $6 billion and its pension liability has soared to $130 billion."


Meanwhile, the state is already under several court orders to pay certain bills, so as others come due the money won't be there. It's a severe problem.

Not sure where they can find the money to become the single payer for health care in the state.

The sad thing is, other states are also struggling to pay their bills. A 2016 study by the Mercatus Center at George Mason University named four other states, in addition to Illinois, that were in particularly bad fiscal shape: Kentucky, New Jersey, Massachusetts and Connecticut, "largely owing to the low amounts of cash they have on hand and their large debt obligations."

"Each of the bottom five states exhibits serious signs of fiscal distress," the Mercatus report said. "Though their economies may be stronger than Puerto Rico's, allowing them to better navigate fis*cal crises, their large liabilities still raise serious concerns."


At the heart of it all is the so-called Blue State model of governance of the Democratic Party. It views government as an ever-expanding and always-available ATM to meet all needs, social and otherwise, with a ready supply of taxpayer cash.


This includes lavish underfunded public-employee pensions, which have created massive fiscal problems for many states across the country.


A study by Moody's Investors Service last year found that net pension liabilities continued to soar in 2015, the latest year for which data are available.


"Total U.S. state aggregate adjusted net pension liabilities totaled $1.25 trillion, or 119% of revenue for the 2015 fiscal year," the report said. As bad as that is, Moody's also predicted that the amount of unfunded liabilities at the state level would soar 40% to $1.75 trillion this year.

To link this to the single payer threads- where is the money going to come from? We have too much debt as it is.

[Peter1469]

What to do with a broken Illinois: Dissolve the Land of Lincoln

The Chicago tribune has a plan to deal with a bankrupt state.

But before we run out of the essentials, let's finally admit that after decade upon decade of taxing and spending and borrowing, Illinois has finally run out of other people's money.

Those "other people" include taxpayers who've abandoned the state. And now Illinois faces doomsday.


So as the politicians meet in Springfield this week for another round of posturing and gesturing and blaming, we need a plan.


And here it is:


Dissolve Illinois. Decommission the state, tear up the charter, whatever the legal mumbo-jumbo, just end the whole dang thing.


We just disappear. With no pain. That's right. You heard me.


The best thing to do is to break Illinois into pieces right now. Just wipe us off the map. Cut us out of America's heartland and let neighboring states carve us up and take the best chunks for themselves.

Read the rest at the link.

[Peter1469]

How Illinois became America's most messed-up state
Simple. Unrestrained spending. I feel sorry for state workers. Their retirement is gone.

Illinois is on the verge of becoming America's first state with a junk credit rating. The financial mess is the inevitable result of spending more on pensions and services than the state could afford -- then covering it up with reckless budget tricks.
After decades of historic mismanagement, Illinois is now grappling with $15 billion of unpaid bills and an unthinkable quarter-trillion dollars owed to public employees when they retire.

Read the rest at the link.