Illinois Stops Paying Its Bills, but Can’t Stop Digging Hole

[chanel]

For the last few years, California stood more or less unchallenged as a symbol of the fiscal collapse of states during the recession. Now Illinois has shouldered to the fore, as its dysfunctional political class refuses to pay the state’s bills and refuses to take the painful steps — cuts and tax increases — to close a deficit of at least $12 billion, equal to nearly half the state’s budget.

Then there is the spectacularly mismanaged pension system, which is at least 50 percent underfunded and, analysts warn, could push Illinois into insolvency if the economy fails to pick up.

“We are a fiscal poster child for what not to do,” said Ralph Martire of the Center for Tax and Budget Accountability, a liberal-leaning policy group in Illinois. “We make California look as if it’s run by penurious accountants who sit in rooms trying to put together an honest budget all day.”

“Each budget has gotten historically worse during this recession,” said Laurence Msall, president of the Civic Federation, a policy research organization. “We’ve borrowed more and pushed larger unpaid bills into the future.”

http://www.nytimes.com/2010/07/03/b....html?pagewanted=1&_r=2&ei=5065&partner=MYWAY

Hmmm. Wonder if anyone in DC is paying attention to IL.

 

[editec]

Pensions are promises made by the present to be paid for by the future.

Sometimes things just don't work out as planned.

 

[ba1614]

For the last few years, California stood more or less unchallenged as a symbol of the fiscal collapse of states during the recession. Now Illinois has shouldered to the fore, as its dysfunctional political class refuses to pay the state’s bills and refuses to take the painful steps — cuts and tax increases — to close a deficit of at least $12 billion, equal to nearly half the state’s budget.

Then there is the spectacularly mismanaged pension system, which is at least 50 percent underfunded and, analysts warn, could push Illinois into insolvency if the economy fails to pick up.

“We are a fiscal poster child for what not to do,” said Ralph Martire of the Center for Tax and Budget Accountability, a liberal-leaning policy group in Illinois. “We make California look as if it’s run by penurious accountants who sit in rooms trying to put together an honest budget all day.”

“Each budget has gotten historically worse during this recession,” said Laurence Msall, president of the Civic Federation, a policy research organization. “We’ve borrowed more and pushed larger unpaid bills into the future.”

http://www.nytimes.com/2010/07/03/b....html?pagewanted=1&_r=2&ei=5065&partner=MYWAY

Hmmm. Wonder if anyone in DC is paying attention to IL.

There's some in the WH that had a lot to do with the IL mess. It's a precursor for what's coming for the whole country.

 

[chanel]

I agree. And yet they are following the same path, all the while ridiculing the tea party having the audacity to show concern.

I live in NJ, which is in a similar situation. The governor is well aware of the dire situation, but I don't think he's gotten that message out loud enough. I know a lot of moderate Dems who think he's over reacting. I think the opposite. The sky IS falling.

 

[Big Black Dog]

One by one, each of the States in the US are going to be dealing with this issue. It's time for everybody to take a hard look at all the government give-away support payments for people on the public dole. It's time to stop spending more than you take in every year in taxes. It's time to start being accountable and responsible public servants BUT no State is going to do that and it's going to be their downfalls.

 

[KMAN]

I thought Obama and rightwinger said the economy was recovering??????

 

[daveman]

Leftist economics in action. It's astounding how anyone can claim it works.

 

[saveliberty]

I thought Obama and rightwinger said the economy was recovering??????

It is recovering from capitalism. Socialism makes it all better.

 

[Baruch Menachem]

Oregon is tap dancing along the event horizon of the same hole. We just raised taxes substantially in order to keep PERS going here. Oregon has more and more state employees and the PERS system here is the incontinent elephant in the living room.

 

[Mad Scientist]

Hmmm. Wonder if anyone in DC is paying attention to IL.

No, because Liberalism is a mental disorder.

 

[bucs90]

(Tea Party): "Told you so".

When will liberal progressives finally grasp the phrase "There is no such thing as a free lunch"?

Welfare, social entitlements, unions, etc, are all cancers to a thriving nation. Sometimes it's a minor benign cancer, like a little skin cancer that can be treated and lived with. Others, like the Obama version, is the pancreatic, lung and brain cancer.

 

[editec]

Cut of all aid to people in EVERY CLASS and see what the outcome is.

Go on...I dare yas to do it.

This nation will be in a state anarchy within the year.

Our economy will collapse, our cities will burn, and those of us not in that mess will be huddled in our rural locations hoping that we can make it through the winter.

 

[Dont Taz Me Bro]

Cut of all aid to people in EVERY CLASS and see what the outcome is.

Go on...I dare yas to do it.

This nation will be in a state anarchy within the year.

Our economy will collapse, our cities will burn, and those of us not in that mess will be huddled in our rural locations hoping that we can make it through the winter.

You mean make people take care of themselves instead of expecting others to? Sounds good to me. As for your claims of anarchy, that's just plain fearmongering.

 

[boedicca]

One by one, each of the States in the US are going to be dealing with this issue. It's time for everybody to take a hard look at all the government give-away support payments for people on the public dole. It's time to stop spending more than you take in every year in taxes. It's time to start being accountable and responsible public servants BUT no State is going to do that and it's going to be their downfalls.

The private sector has already taken the hit and is making "sacrifices" by belt tightening, budget cutting, and debt reduction. The public employee sector has been coddled so far. It's time for them to feel the economic pain inflicted on the rest of us.

 

[LibocalypseNow]

Yea those Socialist/Progressive Democrats sure have done a great job up there no? You gotta love those "Community Organizers" huh? Chicago especially,is now a completely failed Third World H*ll-Hole. WTG Dems! My God,why do people keep voting for Democrats up there? What a nightmare.