Illinois could be the first state to go bankrupt

[IAMX 3,055]

Illinois is grappling with a full-fledged financial crisis and not even the lottery is safe – with Republican Gov. Bruce Rauner warning the state is entering "banana republic" territory. 

Facing billions in unpaid bills and pension obligations, the state is hitting a cash crunch that is rare even by Illinois standards.

A top financial official just warned 100 percent of the state's monthly revenue will be eaten up by court-ordered payments. Rauner is calling a special session of the Democrat-led General Assembly in a bid to pass what he hopes will be the first full budget package in almost three years.

And Illinois will – literally – lose the lottery if the budget fails.

 

The state lotto requires a payment from the legislature each year. The current appropriation expires June 30, meaning no authority to pay prizes. In anticipation of a budget deadlock, the state already is planning to halt Powerball and Mega Millions sales.

 

But the problems are years in the making, caused in large in part by the state’s poorly funded pension system— which led Moody’s Investors Services to downgrade the credit rating to the lowest of any state. The state currently has $130 billion in unfunded pension obligations, and a backlog of unpaid bills worth $13 billion.

 

But Rauner claims the Republicans have a new plan that could remedy the state’s crippling financial situation.

“Republicans in the General Assembly have laid out a compromise budget that I can sign,” Rauner said, calling it a “true compromise.”

The plan incorporates reforms like property tax relief, term limits, and spending caps, which have caused an “ongoing confrontation” between Madigan and the governor, one Republican leader told Fox News, adding that the two have been in a “stalemate” since Rauner took office two years ago.

“Gov. Rauner inherited this financial mess when he took office, and his proposals have been met by resentment from the speaker,” Deputy House Republican Leader Dan Brady said. 

Brady added, “we are asking that the speaker allow for a date and a vote before June 30.”

But Brown told Fox News  the governor isn’t making enough concessions.

“He’s not walking many back—the financial issues are serious enough, and he’s forcing things that have nothing to do with state government,” Brown said. “The biggest problem here is that the governor keeps associating a lot of things that do not have anything to do with the budget.”

Rauner has pushed for structural reforms, government consolidation and pension reform—some components that were able to pass on the Senate side.

“The people and businesses of Illinois deserve stability, not this ongoing chaos,” Senate President John J. Cullerton, a Democrat, told Fox News. The Illinois State Senate approved a balanced budget before the initial May 31 deadline that “matches” the governor’s spending proposal.

If the General Assembly fails to pass a budget package, they do have an option to pass another stopgap package, which lawmakers say is an option, but “not a good one.”

“We have a very real deadline looming,” Senate Republican Leader Christine Radogno told Fox News. “The alternative to not finding a compromise will be devastating to Illinois.”

 

http://www.foxnews.com/politics/2017/06/20/illinois-careens-into-financial-meltdown-and-not-even-lottery-is-safe.html

 

Surprised it isn't California, but Illinois is a good alternative. State is overwhelmingly Democrat.

[Amica Nostra 4,803]

2 hours ago, IAMX said:

 

 

 

 

 

 

 

 

 

http://www.foxnews.com/politics/2017/06/20/illinois-careens-into-financial-meltdown-and-not-even-lottery-is-safe.html

 

Surprised it isn't California, but Illinois is a good alternative. State is overwhelmingly Democrat.

Yeah but it has a Republican Govenor...Just Like Kansas

Column: 

Epic fail of Kansas' tax-cut plan offers a lesson for us all

http://www.chicagotribune.com/news/opinion/zorn/ct-kansas-brownback-trickle-down-tax-fail-zorn-perspec-0621-md-20170620-column.html

[IAMX 3,055]

38 minutes ago, ccneat said:

Yeah but it has a Republican Govenor...Just Like Kansas

Column: 

Epic fail of Kansas' tax-cut plan offers a lesson for us all

http://www.chicagotribune.com/news/opinion/zorn/ct-kansas-brownback-trickle-down-tax-fail-zorn-perspec-0621-md-20170620-column.html

Tell that governor to start making Democrats be useful.

[Amica Nostra 4,803]

3 minutes ago, IAMX said:

Tell that governor to start making Democrats be useful.

You tell them, they are more likely to listen to someone from Alberta

[Dashinka 24,109]

44 minutes ago, ccneat said:

Yeah but it has a Republican Govenor...Just Like Kansas

Column: 

Epic fail of Kansas' tax-cut plan offers a lesson for us all

http://www.chicagotribune.com/news/opinion/zorn/ct-kansas-brownback-trickle-down-tax-fail-zorn-perspec-0621-md-20170620-column.html

When this guy refers to electing an ideologue was he referring to Obama?

[Amica Nostra 4,803]

1 minute ago, Bill & Katya said:

When this guy refers to electing an ideologue was he referring to Obama?

Sorry I missed that part

[Dashinka 24,109]

24 minutes ago, ccneat said:

Sorry I missed that part

Didn't read the whole article?

[OriZ 3,157]

Pension obligations? Did anybody say looming pension crises? Nahh.

 

I suspect many pensions/states/both are going to go down under.

[Amica Nostra 4,803]

32 minutes ago, Bill & Katya said:

When this guy refers to electing an ideologue was he referring to Obama?

No I just did not see this line 

"Kansas elected an ideologue as governor, then nearly everything got worse. Hmmm. Sounds familiar."