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Illinois is broke: State faces over $15 billion in backlogged bills Login/Join 
Lawyers, Guns
and Money
Picture of chellim1
posted
Illinois State Official: "We Are In Massive Crisis Mode, This Is Not A False Alarm"

Last week we reported that as Illinois, a state which now faces over $15 billion in backlogged bills, struggles over the next two weeks to somehow come up with its first budget in three years ahead of a June 30 fiscal year end, and faces an imminent ratings downgrade to junk - the first ever in US state history - traders finally puked, sending the yield on its bonds surging after a judge ruled at the start of the month that the state is violating consent decrees and previous orders, and instructed the state to achieve "substantial compliance with consent decrees", further pressuring its financial situation.

In a last ditch attempt to resolve the ongoing budget impasse and prevent a potential crisis, which may culminate with an eventual default by the distressed state, yesterday the WSJ reported that Illinois Gov. Rauner ordered lawmakers to return for a special session this week, but the two sides still seem far apart. Republican Gov. Bruce Rauner ordered the special session starting Monday, as the backlog of unpaid bills reaches $15.1 billion.

“Everyone needs to get serious and get to work,” he said in a video announcing the session that his office posted on Facebook.

As reported previously, the state Transportation Department said it would stop roadwork by July 1 if Illinois entered its third consecutive fiscal year without a budget - the longest such stretch of any US state - while the Powerball lottery said it may be forced to dump Illinois over its lack of budget. For now, state workers have continued to receive pay because of court orders, but school districts, colleges and medical and social service providers are under increasing strain.

And yet, despite the sharp selloff in Illinois GO bonds which some had expected could force the two sides to reach a bargin, neither the Democrat-led legislature, nor Republicans governor Bruce Rauner appear closer to a consensus. Which probably explains today's Associated Press "shock piece" exposing just how serious the situation could become in under two weeks absent a resolution. It focuses on state Comptroller Susana Mendoza - who has had the unenviable job of essentially sitting at the kitchen table trying to figure out how to pay the bills - who is warning that the previously discussed new court orders in lawsuits filed by state suppliers that are owed money mean her office is required to pay out more than Illinois receives in revenue each month. That means 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.

“I don’t know what part of ‘We are in massive crisis mode’ the General Assembly and the governor don’t understand. This is not a false alarm,” said Mendoza, a Chicago Democrat.

“The magic tricks run out after a while, and that’s where we’re at.”

As AP sums it up, "it's a new low, even for a state that’s seen its financial situation grow increasingly desperate", a state which has a website dedicated to tracking the daily amount in overdue bills...

... and has the lowest credit rating of any state.

Lawmakers from both parties have acknowledged Illinois needs to raise taxes to make up for revenue lost when a previous tax hike expired, leaving the state on pace to take in $6 billion less than it is spending this year — even without a budget.

That, however, is being blocked by Rauner, who wants Democrats to approve changes he says are needed to improve Illinois’ long-term financial health before he’ll support a tax increase. Among them are "term limits for lawmakers, a four-year property tax freeze and new workers’ compensation laws that would reduce costs for employers." Democrats have balked at the full list, saying they’re willing to approve some items on Rauner’s list, but that what he’s demanding "keeps changing or goes too far and would hurt working families." Senate Democrats also note that they approved a $37 billion budget with $3 billion in cuts and an income tax increase in May. The House has not taken up that plan.

In a scenario reminiscent of ongoing events in insolvent Greece, state funding has been reduced or eliminated in areas such as social services and higher education. Many vendors have gone months without being paid. And increasingly, they’re filing lawsuits to try to get paid. As discussed last week, the courts already have ruled in favor of state workers who want paychecks, as well as lottery winners whose payouts were put on hold. Transit agencies have sued, as has a coalition of social service agencies, including one that’s run by Rauner’s wife. Health care plans that administer the state’s Medicaid program also asked a federal judge to order Mendoza’s office to immediately pay $2 billion in unpaid bills. "They argued that access to health care for the poor and other vulnerable groups was impaired or “at grave risk” because the state wasn’t paying providers, causing them to leave the program."

As one after another deadline looms, on June 7, Judge Joan Lefkow ruled that Illinois isn’t complying with a previous agreement to pay the bills and gave attorneys for the providers and the state until Tuesday to work out a level of payment.

Meanwhile, comtroller Mendoza says whatever that amount will be, it will likely put Illinois at the point where 100 percent of revenues must be paid to one of the office’s “core priorities,” such as those required by court order. And if this lawsuit doesn’t do it, the next court ruling against the state will.

In other words, the already insolvent state is about to be slammed with another deluge for bills which it can't pay. Then, she’s not sure what will happen, other than more damage.

“Once the money’s gone, the money’s gone, and I can’t print it,” Mendoza said, perhaps envious of the residents of the Marriner Eccles building who have never faced a similar predicament.

http://www.zerohedge.com/news/...mode-not-false-alarm


"To ban guns because criminals use them is to tell the law abiding that their rights depend not on their own conduct but, on the conduct of the guilty and the lawless."
- Lysander Spooner

"The United States government is the largest criminal enterprise on earth."
-rduckwor
 
Posts: 15105 | Location: St. Louis, MO | Registered: April 03, 2009Reply With QuoteReport This Post
Avoiding
slam fires
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Oh gosh,can't imagine demorats being that careless with the peoples money.
 
Posts: 21672 | Location: Georgia | Registered: February 19, 2007Reply With QuoteReport This Post
Objectively Reasonable
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And naturally, the ones rushing off to court to sue in the greatest numbers aren't the vendors who've been stiffed, it's the "free shit" crowd.
 
Posts: 1529 | Registered: January 01, 2004Reply With QuoteReport This Post
Dances With
Tornados
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Fuck fuck fuck. I mean Cluck cluck cluck, the chickens have come home to roost.
 
Posts: 7476 | Registered: October 26, 2009Reply With QuoteReport This Post
Political Cynic
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couldn't have happened to a nicer state - hopefully a lot of the blame can be pinned on the shithole known as Shitcago



Participating in a gun buy back program because you think criminals have too many guns is like having yourself castrated because you think your neighbor has too many kids

"I'm only myself when I have a guitar in my hands." - George Harrison


 
Posts: 47377 | Location: Arizona | Registered: January 16, 2002Reply With QuoteReport This Post
Fool for the City
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And, in the interim, all the state officials will continue to collect paychecks.


_____________________________
"A free people ought not only to be armed and disciplined but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington.
 
Posts: 4857 | Location: Pottstown, PA | Registered: April 26, 2002Reply With QuoteReport This Post
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the power ball lottery will be pulling out of IL, because they can not depend on IL to pay their share of the winnings





Safety, Situational Awareness and proficiency.



Neck Ties, Hats and ammo brass, Never ,ever touch'em w/o asking first
 
Posts: 47222 | Location: Henry County , Il | Registered: February 10, 2004Reply With QuoteReport This Post
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the Sate of California was unavailable for comment..
 
Posts: 3143 | Location: San Francisco Bay Area  | Registered: November 23, 2008Reply With QuoteReport This Post
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[QUOTE]Originally posted by chellim1:
Illinois State Official: "We Are In Massive Crisis Mode, This Is Not A False Alarm"

Last week we reported that as Illinois, a state which now faces over $15 billion in backlogged bills, struggles over the next two weeks to somehow come up with its first budget in three years ahead of a June 30 fiscal year end, and faces an imminent ratings downgrade to junk - the first ever in US state history - traders finally puked, sending the yield on its bonds surging after a judge ruled at the start of the month that the state is violating consent decrees and previous orders, and instructed the state to achieve "substantial compliance with consent decrees", further pressuring its financial situation.

In a last ditch attempt to resolve the ongoing budget impasse and prevent a potential crisis, which may culminate with an eventual default by the distressed state, yesterday the WSJ reported that Illinois Gov. Rauner ordered lawmakers to return for a special session this week, but the two sides still seem far apart. Republican Gov. Bruce Rauner ordered the special session starting Monday, as the backlog of unpaid bills reaches $15.1 billion.

“Everyone needs to get serious and get to work,” he said in a video announcing the session that his office posted on Facebook.

As reported previously, the state Transportation Department said it would stop roadwork by July 1 if Illinois entered its third consecutive fiscal year without a budget - the longest such stretch of any US state - while the Powerball lottery said it may be forced to dump Illinois over its lack of budget. For now, state workers have continued to receive pay because of court orders, but school districts, colleges and medical and social service providers are under increasing strain.

And yet, despite the sharp selloff in Illinois GO bonds which some had expected could force the two sides to reach a bargin, neither the Democrat-led legislature, nor Republicans governor Bruce Rauner appear closer to a consensus. Which probably explains today's Associated Press "shock piece" exposing just how serious the situation could become in under two weeks absent a resolution. It focuses on state Comptroller Susana Mendoza - who has had the unenviable job of essentially sitting at the kitchen table trying to figure out how to pay the bills - who is warning that the previously discussed new court orders in lawsuits filed by state suppliers that are owed money mean her office is required to pay out more than Illinois receives in revenue each month. That means 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.

“I don’t know what part of ‘We are in massive crisis mode’ the General Assembly and the governor don’t understand. This is not a false alarm,” said Mendoza, a Chicago Democrat.

“The magic tricks run out after a while, and that’s where we’re at.”

As AP sums it up, "it's a new low, even for a state that’s seen its financial situation grow increasingly desperate", a state which has a website dedicated to tracking the daily amount in overdue bills...

... and has the lowest credit rating of any state.

Lawmakers from both parties have acknowledged Illinois needs to raise taxes to make up for revenue lost when a previous tax hike expired, leaving the state on pace to take in $6 billion less than it is spending this year — even without a budget.

That, however, is being blocked by Rauner, who wants Democrats to approve changes he says are needed to improve Illinois’ long-term financial health before he’ll support a tax increase. Among them are "term limits for lawmakers, a four-year property tax freeze and new workers’ compensation laws that would reduce costs for employers." Democrats have balked at the full list, saying they’re willing to approve some items on Rauner’s list, but that what he’s demanding "keeps changing or goes too far and would hurt working families." Senate Democrats also note that they approved a $37 billion budget with $3 billion in cuts and an income tax increase in May. The House has not taken up that plan.

In a scenario reminiscent of ongoing events in insolvent Greece, state funding has been reduced or eliminated in areas such as social services and higher education. Many vendors have gone months without being paid. And increasingly, they’re filing lawsuits to try to get paid. As discussed last week, the courts already have ruled in favor of state workers who want paychecks, as well as lottery winners whose payouts were put on hold. Transit agencies have sued, as has a coalition of social service agencies, including one that’s run by Rauner’s wife. Health care plans that administer the state’s Medicaid program also asked a federal judge to order Mendoza’s office to immediately pay $2 billion in unpaid bills. "They argued that access to health care for the poor and other vulnerable groups was impaired or “at grave risk” because the state wasn’t paying providers, causing them to leave the program."

As one after another deadline looms, on June 7, Judge Joan Lefkow ruled that Illinois isn’t complying with a previous agreement to pay the bills and gave attorneys for the providers and the state until Tuesday to work out a level of payment.

Meanwhile, comtroller Mendoza says whatever that amount will be, it will likely put Illinois at the point where 100 percent of revenues must be paid to one of the office’s “core priorities,” such as those required by court order. And if this lawsuit doesn’t do it, the next court ruling against the state will.

In other words, the already insolvent state is about to be slammed with another deluge for bills which it can't pay. Then, she’s not sure what will happen, other than more damage.

“Once the money’s gone, the money’s gone, and I can’t print it,” Mendoza said, perhaps envious of the residents of the Marriner Eccles building who have never faced a similar predicament.

http://www.zerohedge.com/news/...mode-not-false-alarm[/QUOTE

It's been run by Democrats for decades. Democrats love Socialism and Socialism has worked in Ill.,until now when the Money ran out. You'd think Kalifornia would catch on but with Democrats you can't fix stupid.
 
Posts: 3888 | Registered: November 30, 2004Reply With QuoteReport This Post
Void Where Prohibited
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Same thing here in liberal-ruled Connecticut.



"If Gun Control worked, Chicago would look like Mayberry, not Thunderdome" - Cam Edwards
 
Posts: 14694 | Location: Under the Boot of Tyranny in Connectistan | Registered: February 02, 2005Reply With QuoteReport This Post
Member
Picture of Pipe Smoker
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Re: “Once the money’s gone, the money’s gone, and I can’t print it,” Mendoza said, perhaps envious of the residents of the Marriner Eccles building who have never faced a similar predicament.

FYI: The Marriner S. Eccles Federal Reserve Board Building houses the main offices of the Board of Governors of the Federal Reserve System.




Note to self: Don’t clutter threads with gratuitous posts.
 
Posts: 3789 | Location: San Diego | Registered: July 26, 2014Reply With QuoteReport This Post
Lawyers, Guns
and Money
Picture of chellim1
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quote:
Originally posted by ElToro:
the Sate of California was unavailable for comment..

I see a trend.... Illinois, California, New York... where the Leftist socialist Dems. have had a majority for decades.
When are people going to learn that voting Democrat has consequences?

It now seems to be coming to fruition as the programs for the free shit army are running out of other people's money AND the pension bloat has been kicked down the road and rolled over to "someday". It seems that someday is arriving sooner than they thought it would.


"To ban guns because criminals use them is to tell the law abiding that their rights depend not on their own conduct but, on the conduct of the guilty and the lawless."
- Lysander Spooner

"The United States government is the largest criminal enterprise on earth."
-rduckwor
 
Posts: 15105 | Location: St. Louis, MO | Registered: April 03, 2009Reply With QuoteReport This Post
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Picture of Ken226
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I'm not sure they're out of 'other people's money' yet.

If they had a libtard governer, they'd just raise taxes on the rich, and keep trucking along. Since the governer is a republican, he'll whine stall and complain awhile, then they'll raise taxes on the rich (that's everyone who has a job, by the way).

They'll have to run out of people who have jobs before they'll actually change anything.


Machine Shop
07/02
 
Posts: 1298 | Location: Top Left Corner | Registered: December 23, 2000Reply With QuoteReport This Post
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Picture of bigdeal
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chellim1, you must be mistaken, and this article must be utter propaganda. I haven't heard a single Illinois politician come out and admit their approach has been wrong and they have driven the state down the path to collapse. I'm sure it must be Trump's fault. Wink


-----------------------------
Guns are awesome because they shoot solid lead freedom. Every man should have several guns. And several dogs, because a man with a cat is a woman. Kurt Schlichter
 
Posts: 27082 | Location: Orlando, FL | Registered: April 30, 2006Reply With QuoteReport This Post
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Picture of sourdough44
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Since a buddy leases a farm down in IL, I'll be sending them $325 this week for a non-res deer license. Maybe that will help a bit? NOT.


I think they need to hit rock bottom, let them.

Maybe they can do like CA, start their own 'free' health care for all. Just nonsense.
 
Posts: 3535 | Location: WI | Registered: February 29, 2012Reply With QuoteReport This Post
Leave the gun.
Take the cannoli.
posted Hide Post
As much as some of you hate New York and California, their bond ratings are fine. The three problem children right now are Puerto Rico, Illinois, and Connecticut.
 
Posts: 5918 | Location: New England | Registered: January 06, 2003Reply With QuoteReport This Post
Leave the gun.
Take the cannoli.
posted Hide Post
quote:
Originally posted by sourdough44:
I think they need to hit rock bottom, let them.


Rock bottom comes July 1 if the state doesn't come up with a budget that makes the bond holders happy.
 
Posts: 5918 | Location: New England | Registered: January 06, 2003Reply With QuoteReport This Post
Like a party
in your pants
Picture of armored
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Nothing will change here.
The blame will be put squarely on the republicans and the Governor.
The people will eat it up and the Dems will march on to victory at each election.
The house of cards has to fall!
The same will happen in every Dem super majority state.
It will ultimately end as Trumps fault.
 
Posts: 3095 | Location: Chicago, IL, USA: | Registered: November 17, 2002Reply With QuoteReport This Post
Lawyers, Guns
and Money
Picture of chellim1
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quote:
Originally posted by PD:
As much as some of you hate New York and California, their bond ratings are fine. The three problem children right now are Puerto Rico, Illinois, and Connecticut.

New York seems OK, California, not really, despite some improvement:



https://ballotpedia.org/State_credit_ratings


"To ban guns because criminals use them is to tell the law abiding that their rights depend not on their own conduct but, on the conduct of the guilty and the lawless."
- Lysander Spooner

"The United States government is the largest criminal enterprise on earth."
-rduckwor
 
Posts: 15105 | Location: St. Louis, MO | Registered: April 03, 2009Reply With QuoteReport This Post
Yokel
Picture of ontmark
posted Hide Post
quote:
Originally posted by ElToro:
the Sate of California was unavailable for comment..


Yup



Beware the man who only has one gun. He probably knows how to use it! - John Steinbeck
 
Posts: 3412 | Location: Vallejo, CA | Registered: August 18, 2007Reply With QuoteReport This Post
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