The State Of Illinois Moves Toward Governmental Collapse

[metta]

Illinois enters a state of insolvency

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

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.

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."

http://www.chicagobusiness.com/cgi-bin/mag/article.pl?articleId=32910&seenIt=1

 

[Jasoncurs]

We're so proud of our state and our reputable governors.

There are already locally, privately owned pharmacies closing all over the state because the state can't pay them the public aid money they are owed. One county is going to have to close it's health dept. because the state can't pay the money it owed. In fact, the state told that county they could give them the money they owe them as a short term low-interest loan. WTF??? Why don't you just pay them the money you owe them and they can call it even?!?! A school in the town I live in started putting up on it's large announcement board by the road "The state owes this school $_(lots)_____" and they update it.

I'm glad I don't work for any state agency. I see a significant tax increase on the horizon though. Ugh.

Most of the money the state has goes to Chicago and the rest is left to decay. Anybody want a state?? I'm sure it will be for sale sometime soon!

 

[G-Lexington]

The state of Illinois has been for sale for years.

Lex

 

[Telstra]

so many stories like this from metta:

Is America in decline ?

 

[Jasoncurs]

"The state of Illinois has been for sale for years."


Ain't it the truth??!?!

 

[G-Lexington]

>>>Is America in decline ?

Oh very yes.

Lex

 

[Telstra]

I guess Americans won't need people like this judge anymore:

http://www.justusboys.com/forum/showthread.php?t=293282

 

[swerve]

Its because they raised their "truck" speed limit to 65...

I just drove through there last week -- and a GAZILLION COPS were just SITTING waiting for speeders...

It used to be that they would be lined up all the way through the state behind trucks writing tickets...

The MOTHERFUCKERS!!!

Now that they have a REASONABLE speed limit -- they're TOO STUPID to FIRE the COPS...

Just like what happened by that lake east of Ukiah, CA -- they hired a TON of DOT COPS to write $4000 tickets to trucks that accidentally took that route -- now that the economy has gone into the tank -- the cops just sit there HOPING for the STRAY truck...

 

[thewiz]

Having been a local government administrator for more than 26 years and now working for an organization that supports local government management: the problem has been the inability of states to establish legitimate budgets and then stick to them.

In Michigan, the Republican governor (John Engler) played shell games with state money for years -- moving funds, combining and then separating departments, delaying payments to local government, cutting payments and passing tax cap legislation. Florida has followed Michigan's lead with the tax caps and the governor has said that local government is irresponsible if it does not spend every dollar in the bank "like we have at the state." Minnesotta's governor said local administrators were irresponsible to lay off employees without emptying bank accounts.

Well guess what. There are periods of time that government has to spend and the taxes for that budget year have not yet been paid. Natural disasters occur as well as human made and those contingency funds are what enable government to meet the needs of its citizens.

Term limits have added to the confusion and the hostility between political parties adds the icing on the cake.

Cuts are going to have to be made; budgets should be legitimate and transparent. Without these changes, you will see state governments decline.

 

[Piquechampion]

It's all because of them damn homosexuals. God is judging your country and, finding it wanting is removing his/her/it's blessing.

Oh you're so going to hell for implying that God is a her or an it.

Sarcasm

 

[jizzeater]

Having been a local government administrator for more than 26 years and now working for an organization that supports local government management: the problem has been the inability of states to establish legitimate budgets and then stick to them.

Cuts are going to have to be made; budgets should be legitimate and transparent. Without these changes, you will see state governments decline.

Agreed 100%. That's the problem with these states, they are unwilling to make the cuts that are necessary.

They always want to raise taxes, and inevitably they find new things to spend on and burn through that money, and then they put their hand out again. Face the fact that nice-to-have programs are going to have to get axed. It sucks, but when you're going broke you do what you have to do.

 

[Adrock-JD]

Isn't this the Blagojevich state?

Is anyone surprised?

Great people there, they just have a corrupt government.

Oh, wait, that's what all of us have.

 

[StlKj]

The state of Illinois has been for sale for years.

Lex

Nah, just all their governors are. Growing up in downstate IL most of my life, we watched Republican governors funnel more and more money and opportunities the Chicago way while our area struggled to survive. There was such relief for many people when Blogthedick took office, because surely he would be a great savior of the downstate downtrodden. Well, we all know how that turned out. The only reason people downstate never seriously talk of splitting into two states is because they know they would instantly become the poorest state in the U.S.