Illinois Governor - Let's borrow $15bn to balance our -$12bn budget shortfall."

[iamwhatiseem]

No - you read that correctly.
He wants to borrow $15,000,000,000 to "balance" his budget that has a $12,000,000,000 shortfall.

Something seems amiss.

Illinois Wants To Borrow More To 'Fix' Its Borrowing Problem | The Brian Sullivan Blog

 

[Revere]

Time for the false statist utopia to crash hard.

 

[Annie]

No - you read that correctly.
He wants to borrow $15,000,000,000 to "balance" his budget that has a $12,000,000,000 shortfall.

Something seems amiss.

Illinois Wants To Borrow More To 'Fix' Its Borrowing Problem | The Brian Sullivan Blog

It will get worse:

Moody's downgrades state bonds, revenues continue slide - Springfield, IL - The State Journal-Register

Moody's downgrades state bonds, revenues continue slide

By DOUG FINKE
THE STATE JOURNAL-REGISTER
Posted Jun 07, 2010 @ 11:30 PM
Last update Jun 08, 2010 @ 09:57 AM

Illinois’ bond rating has been cut a notch by Moody’s Investors Service as a new report shows state revenues continue to slide and the pile of unpaid bills continues to grow.

Moody’s cut Illinois’ rating on general obligation bonds from Aa3 to A1, blaming state government’s failure to come up with a permanent solution to its financial problems. Instead, lawmakers relied on a series of one-time fixes to cobble together a spending plan.

“This failure underscores a chronic lack of political will that indicates further erosion of an already weak financial position,” Moody’s said in an opinion about the state’s credit rating.

The report said the state’s credit rating is further threatened by its growing debt burden, large unfunded liabilities for pensions and retiree health benefits, the disparity between spending and revenue and the decision to simply put off paying bills...

 

[william the wie]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

 

[loosecannon]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

CA has the healthiest economy in the Americas besides Canada. But we will prolly need to declare bankruptcy to challenge our employee union obligations. Pretty much a formality. We may need to revisit prop 13 too.

But don't worry about us. The other 49 states are are in far worse condition as is the federal government.

 

[Revere]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

CA has the healthiest economy in the Americas besides Canada. But we will prolly need to declare bankruptcy to challenge our employee union obligations. Pretty much a formality. We may need to revisit prop 13 too.

But don't worry about us. The other 49 states are are in far worse condition as is the federal government.

Bullshit. It's poverty rates, welfare cases and unemployment rates are at the top of every category.

Oh, and stick it to 70 year olds for small homes they have owned for 50 years and see what happens next.

 

[william the wie]

Bullshit. It's poverty rates, welfare cases and unemployment rates are at the top of every category.

Oh, and stick it to 70 year olds for small homes they have owned for 50 years and see what happens next.

I don't necessarily agree with LC but the public employee unions in CA are insane. That idiot who bankrupted Orange county in the 90s playing with derivatives he didn't understand and got his job with a purportedly fictitious resume was at one time one of the highest paid retirees in the state pension system. OK, so he didn't get sent to prison like say Toro would if he screwed up an account the same way. OK, he wasn't terminated for cause for misrepresentation and lose his pension entirely. But how come his take home pension was published as one of the highest in the state and there was no note saying that X amount was being garnisheed for his screw up?

That was big news here in FL on the local news to show us how crazy the left coast is. I remember seeing it just before the weather segment. I don't know where you are from Revere but that story probably elected our soon to be current governor because Sink, his democratic opponent, pulled a similar stunt here in FL only not quite as bad. So instead we have a governor elect who was associated with one of the biggest medicare frauds in US history. That's how bad CA public service unions are.

 

[iamwhatiseem]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

CA has the healthiest economy in the Americas besides Canada. But we will prolly need to declare bankruptcy to challenge our employee union obligations. Pretty much a formality. We may need to revisit prop 13 too.

But don't worry about us. The other 49 states are are in far worse condition as is the federal government.

Yes...well CA has the highest debt to spending ratio in the nation.
It will have to be bailed out by the rest of the states or you will bo bankrupt.

Yeah...loose...healthy economy..

 

[Two Thumbs]

Illinois is chock full of cronyism and the mob.

Chicago alone will ruin the whole state. The last 3 Govs ran on the platform of cutting spending and balancing the budget.

All failed

Why? B/c they all did some fluff crap then went for the money.

Blago cut spending. He did it by closing offices. What he actually did was close VA offices. So he made it harder on Vets and widows, and had to pay to move everyone who's office was closed (shh, that wasn't looked at)

It won't end until the FBI treats the Ill Government like the mob and makes arrests.

 

[zzzz]

A state cannot declare bankruptcy under current US law. [See chapter 9. 11 U.S.C. § 109(c). ] A municipality can declare. A municipality is defined as a township, county, or a city. A state does not meet the definition of a muncipality [See 11 U.S.C. § 101(40) under the bankruptcy code!

And in some states even muncipalites are forbidden to declare. In Indiana a process is being formed to allow cities to declare banruptcy.

 

[Trajan]

food for thought-

Give States a Way to Go Bankrupt
It’s the best option for avoiding a massive federal bailout.
Nov 29, 2010, Vol. 16, No. 11 • By DAVID SKEEL

Give States a Way to Go Bankrupt | The Weekly Standard

 

[Two Thumbs]

A state cannot declare bankruptcy under current US law. [See chapter 9. 11 U.S.C. § 109(c). ] A municipality can declare. A municipality is defined as a township, county, or a city. A state does not meet the definition of a muncipality [See 11 U.S.C. § 101(40) under the bankruptcy code!

And in some states even muncipalites are forbidden to declare. In Indiana a process is being formed to allow cities to declare banruptcy.

Then everone will have to pay to keep Illinois going.

And why shouldn't we?

We bail out damn near everything else. What's one more straw on the camels back?

 

[Trajan]

if the sate doesn't the n another slower death of a thousand cuts will occur as muni's declare bankruptcy , merge with other munis and laying off folks how after all the federal dollars via stimulus anyway, would have been laid or or should have because- and this is key , they spent ahead of the trend-lines of pop. growth and inflation.

Q- if a town or muni say the size of Vallejo at approx. 100k declares bankruptcy or lays off police etc. who picks up the slack? Sate Police? (cali doesn't have a state police force we have sheriffs and Highway patrol)

 

[GHook93]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

CA has the healthiest economy in the Americas besides Canada. But we will prolly need to declare bankruptcy to challenge our employee union obligations. Pretty much a formality. We may need to revisit prop 13 too.

But don't worry about us. The other 49 states are are in far worse condition as is the federal government.

Serious? CA has lost a lot of businesses that have moved to other states. These aren't businesses going dying, these are relatively healthy businesses saying to hell with CA business unfriendly environment. That trend is going to continue, since CA continues to put big government, big spending, illegal immigrant loving, business unfriendly politicians into their state government.

http://www.usmessageboard.com/3122800-post1.html

 

[Mini 14]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

CA has the healthiest economy in the Americas besides Canada. But we will prolly need to declare bankruptcy to challenge our employee union obligations. Pretty much a formality. We may need to revisit prop 13 too.

But don't worry about us. The other 49 states are are in far worse condition as is the federal government.

Keep telling yourself that.

 

[iamwhatiseem]

if the sate doesn't the n another slower death of a thousand cuts will occur as muni's declare bankruptcy , merge with other munis and laying off folks how after all the federal dollars via stimulus anyway, would have been laid or or should have because- and this is key , they spent ahead of the trend-lines of pop. growth and inflation.

Q- if a town or muni say the size of Vallejo at approx. 100k declares bankruptcy or lays off police etc. who picks up the slack? Sate Police? (cali doesn't have a state police force we have sheriffs and Highway patrol)

As the New Jersey governor stated - "we had two decades of unconscionable irresponsibility, everybody was doing it, we spent and spent and spent...look - I cut 30% of our budget, 30%! But we still have a multi-$billion shortfall".
Public entitlements ran amock, and no matter what we do, if that doesn't get cut then we are wasting our time"

 

[loosecannon]

A state cannot declare bankruptcy under current US law. [See chapter 9. 11 U.S.C. § 109(c). ] A municipality can declare. A municipality is defined as a township, county, or a city. A state does not meet the definition of a muncipality [See 11 U.S.C. § 101(40) under the bankruptcy code!

And in some states even muncipalites are forbidden to declare. In Indiana a process is being formed to allow cities to declare banruptcy.

But they can default on their bonds. Perhaps they can default on their pension obligations as well.

 

[loosecannon]

IL will beat CA in the race to be the first state in the 21st century to default or declare bankruptcy.

CA has the healthiest economy in the Americas besides Canada. But we will prolly need to declare bankruptcy to challenge our employee union obligations. Pretty much a formality. We may need to revisit prop 13 too.

But don't worry about us. The other 49 states are are in far worse condition as is the federal government.

Serious? CA has lost a lot of businesses that have moved to other states. These aren't businesses going dying, these are relatively healthy businesses saying to hell with CA business unfriendly environment. That trend is going to continue, since CA continues to put big government, big spending, illegal immigrant loving, business unfriendly politicians into their state government.

http://www.usmessageboard.com/3122800-post1.html

In 1990 CA real estate lost 50% of it's value in one year, 20% of the people moved out of state.......

But ten years later we were roaring forward again

As soon as we figure out how to forcefully restructure our obligations to our employees and break the gridlock in the legislature we will be fine. IF there is a state in the nation that can be an engine of growth it is CA.

 

[Revere]

There will be no pain for unions and their obscene pensions under Jerry Brown.

They will have to pass a referendum behind his back to accomplish anything like that, just like Prop 13.

 

[Two Thumbs]

A state cannot declare bankruptcy under current US law. [See chapter 9. 11 U.S.C. § 109(c). ] A municipality can declare. A municipality is defined as a township, county, or a city. A state does not meet the definition of a muncipality [See 11 U.S.C. § 101(40) under the bankruptcy code!

And in some states even muncipalites are forbidden to declare. In Indiana a process is being formed to allow cities to declare banruptcy.

But they can default on their bonds. Perhaps they can default on their pension obligations as well.

That would be political suicide for an entire party.

Ill has way to many State employees.