September 26, 2017

Whadd’ya Know…Illinois is Bankrupt!

The state of Illinois seems to be following along with what’s been called the Blue State model..it’s on the verge of going bankrupt.

Facing billions in unpaid bills and pension obligations, the state is hitting a major cash crunch and facing insolvency. Its Republican governor Bruce Rauner (more about him later)says that Illinois in entering ‘banana republic territory’ and called a special session of the Democrat dominated general assembly in an attempt to create an actual budget to stave off insolvency. Illinois hasn’t had one in 3 years, which is when Rauner was elected.

Just last week, the state comptroller warned that he would have to be paying out 100 percent of Illinois’ monthly revenue, to pay the state’s liabilities. That would leave nothing for emergencies or any other “discretionary spending. ”

Illinois residents won’t even be able to play the lotto anymore. Both Mega Millions and Powerball will no manage lotteries in the state after June 30th, because that’s when the current required appropriation from the legislature that’s required each year runs out. Without a new appropriation, there’s no authority or ability to pay the winners.

Here are a few fun facts:

Forbes ranked Illinois as 46th for tax burden in 2016
State and local tax burden is 11 percent.
Effective state tax rate ($50,000 taxable income): 3.75 %
Highest tax bracket: flat
Rate at highest tax bracket: 3.75% of federally adjusted gross income
Moody’s recently downgraded the credit rating to it’s lowest investment grade rating, the lowest of any state.

And Illinois currently has $251 billion in unfunded pension obligations, and a backlog of unpaid bills worth $13 billion.

So how did Illinois get into this sorry situation?  First of all, thousands of residents and businesses have fled to the lower taxed and more business friendly  states of Indiana and Wisconsin. Second, Governor Bruce Rauner a Republican has been unable to accomplish much simply because the State’s general assembly is dominated by Democrats led by  House Speaker Michael Madigan, who has taken obstruction to a new level. The state is being run without a budget and rather withstop gap temporary arrangements because Speaker Madigan and his good friends the public employee unions won’t allow anything else. Meanwhile Rauner can at least pat himself on the back for being the first Illinois governor in awhile to stay out of the slammer…at least so far.Image result for greedy pigs at the trough

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It’s fun to spend other people’s money! heh!

Rauner has called an emergency meeting of the Assembly in a last ditch attempt to get a budget passed and avoid a Chapter 9 bankruptcy, a first for any of the United States. Technically, while municipalities can go bankrupt, states aren’t allowed to, but hey…it is what it is.

John Kass is something of an institution in Chicago at the city’s signature paper, the Chicago Tribune. He has a solution to this seemingly unsolvable problem… since a lot of the population of Illinois has already fled to neighboring states, why not just dissolve Illinois among them and give it up as a bad job?

The best thing to do is to break Illinois into pieces right now. Just wipe us off the map. Cut us out of America’s heartland and let neighboring states carve us up and take the best chunks for themselves.{…}

Our beloved Illinois  has proved that it just doesn’t deserve to survive.

So why not let our friendly neighbors like Indiana, Wisconsin, Iowa, Missouri and Kentucky just take the parts they want?

As you can see by the excellent “Kevorkian Illinois” map that accompanies this column, this plan is visionary. (see the map at the above link)

The alternative is hell. Illinois hasn’t had a state budget for years. The state continues to spend money it doesn’t have, and the state’s credit ratings have dropped, increasing the cost of borrowing more money we don’t have to keep the rotten shebang going.

Bills pile up; Moody’s Investor Service says taxpayers are on the hook for $251 billion in unfunded public union pension liabilities.

Boss Mike Madigan, king of the Democrats who control things, wants tax increases but no real structural reform to bring stability to The Venezuela of the Midwest.

And the whispers of bankruptcy won’t help the average (remaining) taxpaying chumbolones like you and me who don’t want to leave our homes but who’ll get stuck with the bills.

Since our neighboring states are doing better, taking Illinois jobs and businesses and Illinois workers and taxpaying families, they might as well just take the rest of Illinois, too, dammit.

There is just one problem. What state that wasn’t insane would want to take on Chicago? Or any part of the debt Illinois has let its politicians inflict on them?

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It’s kind of like Puerto Rico wanting statehood. Gracias, amigos, but we have $20 trillion in debt to deal with already.

Quizás más tarde … mucho más tarde.

Yes, Illinois is joining Puerto Rico, Connecticut, New Jersey,California and other followers of the blue state model in dire financial straits. The Leftist Democrats that run them  can only think in terms of raising taxes, which chases the tax serfs away in droves and discourages new potential targets from moving in.

One sure way to start fixing this is to break up the Tammany Hall relationship with public employee unions that has a substantial role in funding the Democrat party by either prohibiting public employee unions altogether. The public employee unions paychecks come from all the taxpayers. Public employee unions give a huge chunk of this cash to Democrat politicians as well as providing them with other resources like campaign workers and rent a mobs. Then, these same public employee unions go up to the politicians they elected and ‘negotiate’ pay and benefit increases, saying ‘you owe us.’

Even FDR, one of our most pro labor presidents thought allowing public employee unions was a silly idea.

Since the Democrats, particularly in Illinois aren’t going to even consider anything like that, I imagine will see a raise in taxes and a short term stop gap solution rather then an actual budget. which means, of course, that the problem will exacerbate. And be even harder to solve next time when other people’s money runs out.

Rob Miller

Rob Miller writes for Joshuapundit. His articles have appeared in The Jerusalem Post, The Washington Examiner, American Thinker, The Los Angeles Times, The Atlanta Journal-Constitution, The San Francisco Chronicle, Real Clear Politics, The Times Of Israel, Breitbart.Com and other publications.

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