The sad state of Illinois; coming to a country near you!
Illinois Stops Paying Its Bills, but Can’t Stop Digging Hole
Comptroller Daniel W. Hynes. The state faces a deficit of at least $12 billion.
By MICHAEL POWELL
Published: July 2, 2010
http://www.nytimes.com/2010/07/03/business/economy/03illinois.html?_r=3&partner=MYWAY&ei=5065
"States cannot go bankrupt, technically, but signs of fiscal crackup are easy to see. Legislators left the capital this month without deciding how to pay 26 percent of the state budget. The governor proposes to borrow $3.5 billion to cover a year’s worth of pension payments, a step that would cost about $1 billion in interest. And every major rating agency has downgraded the state; Illinois now pays millions of dollars more to insure its debt than any other state in the nation.
“Their pension is the most underfunded in the nation,” said Karen S. Krop, a senior director at Fitch Ratings. “They have not made significant cuts or raised revenues. There’s no state out there like this. They can’t grow their way out of this.” "
"The federal dollars are nearly spent. Last month, local governments nationwide shed more than 20,000 jobs. Should the largest struggling states - like California, New York or Illinois - lay off tens of thousands more in coming months, or default on payments, the reverberations could badly damage a weakened economy and push housing prices down still further. "
Isn't it funny that they don't make the distinction that these states have all been under Democratic control for years? And you can chart their decline from those changes in power?
"More broadly, Illinois is caught between blue state convictions about social safety nets and a red state aversion to taxes. For years, the Democratic-controlled legislature has passed budgets that are, in effect, in deficit. Lawmakers routinely skip around the state’s balanced-budget law, with few consequences. (Republicans are near monolithic in voting against any tax increases and borrowings. When one broke ranks to try to keep the pension solvent, he was stripped of a committee position, reducing his pay and pension.)
Illinois’s Cash Balance and Overdue Payments “The pension move was Enron-esque,” said Mike Lawrence, a press secretary to the former Republican governor Jim Edgar, who was the last governor to sign an income tax increase. “Blagojevich was not a tax-and-spend governor; he was a spend-and-borrow governor.”
Note how they taint the Republicans here by implying that they are so stingy against voting to increase taxes. The state doesn't NEED more taxes to become solvent... they NEED to stop SPENDING! If they did, they'd be fine! Besides the Dems are in control; if they voted in unity the taxes would pass and the Dem. Governor would sign them... (then they would spend even MORE money).
Yes, Edgar was the last elected Gov. to pass an income tax increase. He was also the last to leave a surplus budget, not be prosecuted for crimes, reduce the size of state government and to leave with approval ratings in the 60's.
"As comptroller, Mr. Hynes has trained his attention on the public and nonprofit agencies that rely on state money; he tends to roll his eyes at the notion that slashing alone is a solution.
“Only the most delusional people think you can solve this without raising taxes,” he said.
The legislature has a different instinct: to borrow. In good times, that leads to unsightly imbalances. In bad times, it becomes catastrophic. This year, leaders gave the governor authority to move money around and left town to campaign.
“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.” "
Read these last words carefully, people. Our current President came form this very failing model. And he has been using the same system and we will suffer the same results. He is borrowing, printing and spending money at your future's expense... and all his lies about not raising your taxes are falling apart in the light of day. Wake up your Congressional Rep.s and Senators and tell them to "Cut him off from spending your money!".
Comptroller Daniel W. Hynes. The state faces a deficit of at least $12 billion.
By MICHAEL POWELL
Published: July 2, 2010
http://www.nytimes.com/2010/07/03/business/economy/03illinois.html?_r=3&partner=MYWAY&ei=5065
"States cannot go bankrupt, technically, but signs of fiscal crackup are easy to see. Legislators left the capital this month without deciding how to pay 26 percent of the state budget. The governor proposes to borrow $3.5 billion to cover a year’s worth of pension payments, a step that would cost about $1 billion in interest. And every major rating agency has downgraded the state; Illinois now pays millions of dollars more to insure its debt than any other state in the nation.
“Their pension is the most underfunded in the nation,” said Karen S. Krop, a senior director at Fitch Ratings. “They have not made significant cuts or raised revenues. There’s no state out there like this. They can’t grow their way out of this.” "
"The federal dollars are nearly spent. Last month, local governments nationwide shed more than 20,000 jobs. Should the largest struggling states - like California, New York or Illinois - lay off tens of thousands more in coming months, or default on payments, the reverberations could badly damage a weakened economy and push housing prices down still further. "
Isn't it funny that they don't make the distinction that these states have all been under Democratic control for years? And you can chart their decline from those changes in power?
"More broadly, Illinois is caught between blue state convictions about social safety nets and a red state aversion to taxes. For years, the Democratic-controlled legislature has passed budgets that are, in effect, in deficit. Lawmakers routinely skip around the state’s balanced-budget law, with few consequences. (Republicans are near monolithic in voting against any tax increases and borrowings. When one broke ranks to try to keep the pension solvent, he was stripped of a committee position, reducing his pay and pension.)
Illinois’s Cash Balance and Overdue Payments “The pension move was Enron-esque,” said Mike Lawrence, a press secretary to the former Republican governor Jim Edgar, who was the last governor to sign an income tax increase. “Blagojevich was not a tax-and-spend governor; he was a spend-and-borrow governor.”
Note how they taint the Republicans here by implying that they are so stingy against voting to increase taxes. The state doesn't NEED more taxes to become solvent... they NEED to stop SPENDING! If they did, they'd be fine! Besides the Dems are in control; if they voted in unity the taxes would pass and the Dem. Governor would sign them... (then they would spend even MORE money).
Yes, Edgar was the last elected Gov. to pass an income tax increase. He was also the last to leave a surplus budget, not be prosecuted for crimes, reduce the size of state government and to leave with approval ratings in the 60's.
"As comptroller, Mr. Hynes has trained his attention on the public and nonprofit agencies that rely on state money; he tends to roll his eyes at the notion that slashing alone is a solution.
“Only the most delusional people think you can solve this without raising taxes,” he said.
The legislature has a different instinct: to borrow. In good times, that leads to unsightly imbalances. In bad times, it becomes catastrophic. This year, leaders gave the governor authority to move money around and left town to campaign.
“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.” "
Read these last words carefully, people. Our current President came form this very failing model. And he has been using the same system and we will suffer the same results. He is borrowing, printing and spending money at your future's expense... and all his lies about not raising your taxes are falling apart in the light of day. Wake up your Congressional Rep.s and Senators and tell them to "Cut him off from spending your money!".