We’ve seen decades of Democrat rule bankrupt Detroit – but never before have we seen an entire state file for bankruptcy.
We learned from S&P Global Ratings earlier this week that they’re on track to lower Illinois’ debt rating to “junk bond” territory – a status they’ve been hovering around in recent years.
The only other counties and cities with such a distressed debt rating are Chicago, Atlantic City, and Detroit. You can take a wild guess as to what the political party in charge there is.
While Democrat legislatures have become a rarity in recent years, Illinois is one of the few states still suffering with one – and the results have gone about as you’d expect.
According to Fox News, the state also has $130 billion in unfunded pension obligations that it needs to take into account. In short, Illinois is on the verge of filing for Chapter 9 bankruptcy, which could shut down the entire state. The actual cause of much of the state’s financial problems originated in 2011 when the state, led by Gov. Pat Quinn (D), decided to hike the tax rate to address a looming pension shortfall as well as offset a $12 billion deficit to account for a $35 billion state-wide budget. Since then, the Democrat-led state failed to reform the pension plans. Illinois Policy, an independent organization that promotes freedom-driven public policy in the state, listed the following drivers for the pension crisis:
- 60% of state pensioners retired in their 50’s, many with full pension benefits.
- Over half of state pensioners will receive $1 million or more in pension benefits over the course of their retirements. Nearly 1 in 5 will receive over $2 million in benefits.
- Almost 60% of all current state pensioners can expect to spend 25 or more years collecting benefits, based on approximate actuarial life expectancies. Due to automatic, 3% compounded COLA (cost of living adjustment) benefits, those pensioners can expect to see their annual pension benefits double in size.
- The average career pensioner — retired after Jan. 1, 2013, with 30 years of service or more — receives $66,800 in annual pension benefits and will collect over $2 million in total benefits over the course of retirement.
- The average career pensioner will get back his or her employee contributions after just two years in retirement. In all, pensioners’ direct employee contributions will only equal 6% of what they will receive in benefits over the course of their retirements.
H/T The Daily Wire
Just imagine what Democrats would do if they had eight years in the presidency!
Oh wait….
They did. And our debt ballooned like never before.
Democrats are just fiscally irresponsible. There’s no other way to put it.
What do you think about Illinois getting closer to declaring bankruptcy? Post your thoughts below and share this on Facebook and Twitter!
I am an American. As such, I have and owe, my fellow countrymen a level of forgiveness I would not offer any one else.
Illinois has done what each state has done. they elected certain people to represent them. Those people made decisions that have resulted in this.
1. All living past and present elected officials should loose all retirement benefits from the state. period!
2. All former and current state employees should be prohibited from receiving any more money than they themselves paid into their retirement plan.
Period!
All union members, both former and present who receive in any way funding from the state of Illinois, should be cut off immediately and completely. People who did not and do not represent 100% of the peo0ple of Illinois should not have a claim on tax dollars.
All former and present educators in the state of Illinois should have their pensions cut to reflect what they themselves put in. Once they have withdrawn that dollar amount, that pension should cease.
period.
All state and local policemen and firemen should be held to the exact same standards. they get what they paid in. No more than that.
Period.
A great deal of this unfunded pension plan catastrophe is based on unions not paying into the funds what they swore to do. The people as a whole should never suffer based on the lies union leaders made.
Period.
Implement this plan, and Illinois would suddenly find themselves with an S&P rating of AAA+. Yes, there will be quite allot of screaming, marching and protests. If civil unrest is the name of the game, bring in the militia, the military, and insure the rule of law is obeyed and peace is kept.
Finally, allow any and all citizens who know who participated in the signing of these union agreements, in the name of the people, to be held accountable in court, and let their resources be confiscated and distributed to the people in their district. game, set and match.
Suddenly a AAA+ ? Have you taken a look at the graft and waste the elected officials have squandered ? I don’t know about “elected” sometimes either. These people are “set up” for these posts by crooked politicians who manipulate districting and ‘seats’ available for money. The State of Illinois is as crooked as they come and they are paying the price. No one should bail them out. They need to fall where they fall. They did it to themselves.
States, because they possess sovereignty, including the authority to borrow money, repay debt, raise or lower taxes, increase or cut spending, cannot commence a Chapter 9 bankruptcy case. I would be willing to let Illinois spin down the drain completely. US to IL: Drop Dead.
http://www.usdebtclock.org/state-debt-clocks/state-of-illinois-debt-clock.html
Here you can click on any State and it will give you the “real time” debt spending etc figures.
Check how the Red/Blue States are actually doing without the BS.
Lets get the truth out from the start. There is not a single solvent state in America… EVERY single state runs BEHIND there financial obligations. INDEED the states with the WOPRST financial record are almost universally republican states and the deficits have LEAPED beyond all reason under republican guidance at the state level. IF this article is the truth, (doubtful since this site runs 90% lies and fabrications, exaggerations and half-truths), it may be that Illinois can no longer borrow money to close the financial gap but MAKE NO MISTAKE, every single state in America is under water and SINKING even further into financial oblivion. Trying to pretend this is a single state issue and that democrats are 100% responsible is simply par for the course on this propaganda website.
Brian…………….name the states run by Republicans that are worse off financially than Illinois and California? Statistics, please. Get back to us in a couple of years when you can’t find any.
Let’s get “what” straight ? Republican States are the only ones that are near solvent my deceived one. California is fiscally gone and Illinois soon to follow. Do a bit of research.
Anyone knows the Democrats are the ones always on the “Dole” and handing out money that is not theirs……That’s the whole Socialist philosophy….Borrow Steal Redistribute other’s wealth…Tax Tax and more Tax
Here’s the top 10 debt levels
Cal $617 Billion Mass $102 Billion Mich $125 Billion Fla $135 Billion Penn $142.5 Billion
Ohio $$239.5 Billion Ill $271 Billion NJ $282 Billion Tx $286 Billion NY $300 Billion
Texas normally runs in the black however these are the “In Debt” figures. How many of those are red states and how many blue ?
Brian-I would list some facts but it would be a waste of time like attempting to talk to a brick wall. You prove again that Liberalism is what smart looks like to stupid people.
Now THAT is simply a falsehood. Idaho put in place a balanced budget amendment back in the late 90’s. Not only is their budget balanced, but they have SURPLUS that the voters got to decide if they wanted a refund or to decided how they wanted that money to be spent! You best do some research before you have diarrhea of the fingertips.
One more thing. Idaho isn’t the only state with a BALANCED BUDGET REQUIREMENT.
Now it’s time to place one on the Feds that can’t be bypassed. A balanced budget is purely common sense and should be a hard requirement of every single gov’t office from the bottom to the top.
the problems for us started shortly aftfer our governor decided to announce people from other states were welcome here. Our economy is larger than many other countries and ran at a surplus every year… then he made that statement. In came all the rats fleeing the sinking ships of detroit, chicago, la, etc. Instead of leaving their problems behind, they started trying to change our way of life and way to do things into the method they were used to … instead of leaving the feces in the swamps they left… they’ve started pushing for democrat and lib style changes to our state… and the $$ are beginning to go the wrong way. But just like the states who pass $15 hamburger joint wages for minimum wage… stupidty can’t be fixed… only amended… by more and more and more and more rules, laws rules, legislative actions, rules, taxes… so as we watch Wendy Davis and Co detroy what was the most profitable state in the union… measureably and by degree… as they pave over history in pursuit of maximum population density and skyrocketing tax base… the costs go up even faster… THAT what happens to a red state. The dems get jealous and tear it down to prove they really can.
chicago is the murder capitol of the midwest and about as corrupt as it gets and is full of jungle bunnies and mexicans gangs all supported by the state
California’s next I’ll bet.
Not a huge surprise since the state has been full of Demonrat liberals who support Obozo!