Could Illinois be the first state to file for bankruptcy?

[Team Sergeant]

Another failed corrupt liberal/socialist run state will now beg for federal aid I'm sure.

This is socialism, plain and simple.

Too soon to start shooting , to late to fix.







Could Illinois be the first state to file for bankruptcy?
By AIMEE PICCHI MONEYWATCH June 16, 2017, 5:00 AM

llinois residents may feel some solidarity with the likes of Puerto Rico and Detroit.

A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it's impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.

Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.

Ratings agency Moody's Investor Service earlier this month downgraded Illinois' general obligation bonds to its lowest investment grade rating, citing the state's growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets.

"Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance, allowing a backlog of bills to approach $15 billion, or about 40 percent of the state's operating budget," the agency noted.

As noted by the Fiscal Times, Illinois is the only state that's been operating without a balanced and complete budget for almost two years.


cont:
http://www.cbsnews.com/news/could-illinois-be-the-first-state-to-file-for-bankruptcy/

[7624U]

https://taxfoundation.org/publications/tax-maps/

all taxes


old state credit rating 2013

https://files.taxfoundation.org/legacy/docs/State-Credit-Ratings-(large)_0.png

[bblhead672]

Another failed corrupt liberal/socialist run state will now beg for federal aid I'm sure.

This is socialism, plain and simple.

Too soon to start shooting , to late to fix.

Could Illinois be the first state to file for bankruptcy?
By AIMEE PICCHI MONEYWATCH June 16, 2017, 5:00 AM

llinois residents may feel some solidarity with the likes of Puerto Rico and Detroit.

A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it's impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.

Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.

Ratings agency Moody's Investor Service earlier this month downgraded Illinois' general obligation bonds to its lowest investment grade rating, citing the state's growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets.

"Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance, allowing a backlog of bills to approach $15 billion, or about 40 percent of the state's operating budget," the agency noted.

As noted by the Fiscal Times, Illinois is the only state that's been operating without a balanced and complete budget for almost two years.


cont:
http://www.cbsnews.com/news/could-illinois-be-the-first-state-to-file-for-bankruptcy/

They're already shooting in Chicago every day! :D
So glad I moved from Illinois to Texas last year.

[Dean Jarvis]

Another failed corrupt liberal/socialist run state will now beg for federal aid I'm sure.

This is socialism, plain and simple.

Too soon to start shooting , to late to fix.







Could Illinois be the first state to file for bankruptcy?
By AIMEE PICCHI MONEYWATCH June 16, 2017, 5:00 AM

llinois residents may feel some solidarity with the likes of Puerto Rico and Detroit.

A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it's impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.

Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.

Ratings agency Moody's Investor Service earlier this month downgraded Illinois' general obligation bonds to its lowest investment grade rating, citing the state's growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets.

"Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance, allowing a backlog of bills to approach $15 billion, or about 40 percent of the state's operating budget," the agency noted.

As noted by the Fiscal Times, Illinois is the only state that's been operating without a balanced and complete budget for almost two years.


cont:
http://www.cbsnews.com/news/could-illinois-be-the-first-state-to-file-for-bankruptcy/


If I'm not mistaken, isn't this what we fought the Revolutionary War over.....Taxation without representation? How many of us tax payers voted for any of those liberal losers? We had absolutely no say in who governed or managed the state yet we are expected to fork over our hard earned money to bail these POS politicians out? Something wrong here....:munchin

[The Reaper]

Well, I guess they were right about eventually running out of other people's money.

Now they want the Feds (our money) to pay for their stupidity.

TR

[mojaveman]

old state credit rating 2013

https://files.taxfoundation.org/legacy/docs/State-Credit-Ratings-(large)_0.png

Didn't surprise me that The People's Republik of Kalifornia is right behind Illinois.

[Team Sergeant]

This is how socialism works and it's great, until you run out of "other peoples money"..........

Should be mandatory for all elected democrats to attend "budgeting" classes upon election.

Let them eat corn, I'll be dammed if I pay to assist corrupt socialists...........






OFFICIAL WARNS ILLINOIS FINANCES IN 'MASSIVE CRISIS MODE'
BY SARA BURNETT
ASSOCIATED PRESS
Jun 17, 11:53 AM ED


CHICAGO (AP) -- The Illinois official responsible for paying the state's bills is warning that new court orders mean her office must pay out more each month than Illinois receives in revenue.

Comptroller Susana Mendoza must prioritize what gets paid as Illinois nears its third year without a state budget.

A mix of state law, court orders and pressure from credit rating agencies requires some items be paid first. Those include debt and pension payments, state worker paychecks and some school funding.

Mendoza says a recent court order regarding money owed for Medicaid bills means mandated payments will eat up 100 percent of Illinois' monthly revenue.

There would be no money left for so-called "discretionary" spending - a category that in Illinois includes school buses, domestic violence shelters and some ambulance services.


cont:
http://hosted.ap.org/dynamic/stories/A/APFN_US_ILLINOIS_PAYING_THE_BILLS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2017-06-17-11-53-44

[Chairborne64]

The whole thing is a disgrace. I was born and raised in Illinois. My folks still live there and my oldest is going to College there. The whole issue has been caused by the Dems spending way to much money and refusing to balance the budget. For years they raided the State pension funds to provide pork for Chicago. Mike Madigan, the Democratic Speaker of the House, refuses to pass a balanced budget. Actually any budget at this point. When the Republican State Comptroller died in Office he was able to force a special election. Mendoza, the new comptroller is a Madigan lap dog.

Illinois is actually very conservative once you are outside of Chicago or East St. Louis. Sadly, the corrupt Chicago politics permeates to the State level.

[Badger52]

If the numbers here (http://www.foxnews.com/politics/2017/06/20/illinois-careens-into-financial-meltdown-and-not-even-lottery-is-safe.html) are to be believed, that's like 43x Venezuela's external debt.
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.


Maybe Sean Penn & Hollyweird should just go visit Chicongo & make nice with Tiny Dancer.

[bblhead672]

The state currently has $130 billion in unfunded pension obligations, and a backlog of unpaid bills worth $13 billion.

Or as Washington DC calls it, "chump change." :D

[Last hard class]

If you are a member of the Illinois National Guard, is your retirement money part of the $130 billion unfunded state pension?


LHC

[Penn]

Too soon to start shooting, to late to fix.

The last option, after all other political options have failed, is war. The purge will be biblical.

[Badger52]

If you are a member of the Illinois National Guard, is your retirement money part of the $130 billion unfunded state pension?


LHCGreat question; I shot an RFI to some retired compadres that live outside the cesspool down there to see if they have any NG buddies they've made over time. (They are AC, then AR and retired now so n/a for them but... damn, that would suck for an NG guy if that's part of the money roped in that total.)

[TOMAHAWK9521]

Didn't surprise me that The People's Republik of Kalifornia is right behind Illinois.

And yet, despite that, Moon Beam is raking in the dollars while criticizing those "free-loaders". You know, the people who actually produce something and pay taxes in K-fornia.

http://www.truthrevolt.org/news/ca-governor-gets-fifth-raise-five-years

[PedOncoDoc]

Maybe Illinois (and Chicago) should replace their local governments with kiosks to save money and improve efficiency.

[Chairborne64]

If you are a member of the Illinois National Guard, is your retirement money part of the $130 billion unfunded state pension?


LHC

I think the normal Guard pension is federally funded not State funded. The people that should be worried in the ILARNG are the State technicians those pensions are all State funded.