This page has been archived and commenting is disabled.
Illinois To Delay Pension Payments Amid Budget Woes: "For All Intents And Purposes, We Are Out Of Money Now"
By now, Illinois' budget problems are no secret.
Back in May, after the State Supreme Court struck down a pension reform bid, Moody's move to downgrade the city of Chicago thrust the state's financial woes into the national spotlight.
Since then, the situation hasn't gotten any better and despite hiring an "all star" budget guru (for $30,000 a month no less), Bruce Rauner was unable to pass a budget in a timely fashion leading directly to all types of absurdities including everything from the possibility of shortened school years to lottery winners being paid in IOUs.
Now, as Bloomberg reports, pension payments are set to be delayed. Bond payments, apparently, will still be made.
Illinois will delay pension payments as a prolonged budget impasse causes a cash shortage, Comptroller Leslie Geissler Munger said.
The spending standoff between Republican Governor Bruce Rauner and Democratic legislative leaders has extended into its fourth month with no signs of ending. Munger said her office will postpone a $560 million retirement-fund payment next month, and may make the December contribution late.
“This decision is choosing the least of a number of bad options,” Munger told reporters in Chicago on Wednesday. “For all intents and purposes, we are out of money now.”
Munger said the pension systems will be paid in full by the end of the fiscal year in June. The state still is making bond payments, she said.
“We prioritize the bond payments above everything else,” Munger told reporters.
And from Reuters:
Illinois Comptroller Leslie Munger said on Wednesday a $560 million November pension payment will be delayed due to a cash crunch stemming from the state's budget impasse.
Despite the delay, state pension funds will be paid in full by the end of fiscal 2016, Munger said at a news conference in Chicago.
Here's some color (again via Reuters) from Tuesday's preview:
Oct 13 Illinois' budget impasse has reached a point where full and timely payments for big ticket items such as pensions could be in jeopardy, the state comptroller's office indicated on Tuesday.
Comptroller Leslie Munger set a Wednesday press conference "to discuss the significant cash flow constraints the continuing budget impasse is placing on state finances and the challenges of making timely state payments in the months ahead," according to an advisory from her office.
The battle between Republican Governor Bruce Rauner and Democrats who control the legislature has left Illinois without a budget for the fiscal year that began July 1. However, the state is required, even without a budget, to put aside money each month for pensions and debt service on bonds.
One wonders what these means for Chicago's bankrupt school system, which, as we reported early last month, was depending upon nearly a half billion in funding from Springfield to plug a gaping budget hole. Further, this would seem to suggest that anyone who wins more than a few thousand in the Illinois lottery can go ahead and figure on getting a pieces of paper with Bruce Rauner's picture rather than Ben Franklin's for the foreseeable future.
We also encourage readers to review this piece by Reuters in full as it contains several of the most egregious examples of government waste and inefficiency you'll ever come across and goes on to say that reform simply isn't an option, as the Illinois legislature is filled with lawmakers who have at one time or another themselves benefited from the state's sprawling local bureaucracies. Reuters also says it has identified nearly a dozen instances where husbands employ wives, mothers employ daughters, and fathers hire sons," suggesting nepotism weighs heavily on the already elephantine system.
Bear in mind that this is the same state whose court system refuses to allow efforts at pension reform to move forward, and while all of this may seem like a recipe for default disaster, just remember, PIMCO sees a lot of "long-term value" in Chicago's debt.
Finally, a look at just how underfunded Illinois' pension system truly is:
»
- 158616 reads
- Printer-friendly version
- Send to friend
- advertisements -
How about delaying state employee paychecks first?
arrest that man now; send him to a closed walmart for his own safety
Then pack-em' pensioners into those empty shipping containers from Long Beach California, back to China...some Arrowhead water bottles and port-o-potties.
Then just try and get your pension sent from USA, from inside Chinese Foxconn workin' camps....behind the fences.
Anyone read the recent Asia trade agrements ... hmm.
Done.
Win-win for the banksters and planners.
reality sucks, huh?
Wait until the Free Shit Army gets cut as well.
They gonna fight back better than the old white pensioners will.
All them gun control laws and gun free zones in Chicago will save the day though - right ?
90% of FSA couldn't fight their way out of a wet paper bag
Hell, many of them couldn't bend over to pick one up.
Correct, disability and all...
Yea, but every one that can't bend over has produced 3-5 that can, and then 3-5 more nieces and nephews for every sibling.
I'm not so sure about that.
Would you really want to stand in front of a group of angry blacks and tell them their EBT cards won't work anymore?
That fear is what brought us to this point.
They tested the waters 2 years ago.
http://www.wnd.com/2013/10/food-stamp-free-for-all-after-ebt-glitch/
That is what I thought when this happened, as well. Wonder what actions they took when they gathered the information on how the FSA reacted in those areas or in all areas in general.
“There are only nine meals between mankind and anarchy” was said by writer Alfred Henry Lewis (1855-1914) in a March 1906 issue of Cosmopolitan Magazine. “It’s only nine meals between men and revolution” was cited in print in 1943.
Just text them.
Or, better yet, Twitter them. #toughtahooties. #GreatWhiteFatherRegrets.
https://www.youtube.com/watch?v=HnJZ2haLPCw
Too funny.
Here in Chicago they walk up to victims and start shooting - at the same time they start running away. That is why there is so much collateral damage. Chicken shits.
Damn that fucking video is hilarious....It is only funny cuz it is true...
No, but they will burn, loot, and kill anything within a 3 mile radius.
a target rich environment
But no more than that.
Round 2 be a bitch, yo.
And................. IT'S GONE!
Rauner was too busy helping dedicate a monument in Bloomingdale, IL to Banderist neo-nazi murderers in Kiev!
http://novorossia.today/shame-unveiling-of-a-monument-honoring-the-blood...
To think I even voted for this POS jerk off moron makes my blood boil!
Ukraine is Dead! http://thetruthspeaker.co/2015/04/19/10-reasons-ukraine-is-dead/
Flag on the play. Neo-Godwin's Rule.
The State of IL is chasing out businesses due to high taxes. People are leaving this state 2nd highest in the nation. State Farm in Bloomington IL is moving to hubs in Phoenix, Dallas, and Atlanta. It's only going to get worse people.
Me and my business left 2 years ago. Next up...degentrification. Wont it be fun to watch the gangs take over all that nice new building that went on. Already started
Panic in Detroit...this time for real.
The State of IL is chasing out businesses due to high taxes.
And Chicago uses it's TIF slush fund to attract them.
Oh wait- they're talking about dipping into that to pay down the City budget. Nevermind.
Noice work.
http://www.chicagoreader.com/chicago/chicagos-tif-program-collects-anoth...
Whaddya expect from thugs, which is all the 'elite' are. And sociopaths to boot.
how Greek of them
I call Bullshit!!!!!
What does the pension fund's cirtified annual financial report (CAFR) say?
These fuckers lie their faces off talking about budget knowing full well their budgets are set by the CAFR
https://youtu.be/g4bftQ4xxFc
What the hell are you talking about?
Yes, yes, yes. You are correct Zen Master. Again, if people only knew how badly they were being taken advantage of, from the federal government all the way down to their local towns. Your town is a corporation. The government is a corporation. Both are very profitable corporations and the way to confirm this is through their CAFRs. Every town has a responsibility to produce one. It's not the annual budget, either. Wake up people. The information is out there.
"Your town is a corporation."
Yeah, of course, it's a municipal corporation. WTF else would it be? A natural person?
CAFR is nothing but an Audited Finacial Report. Whooooooo!!! Big Deal.
"Both are profitable corporations"
Both? All? If so why are they defaulting on their obligations?
The budget is a legal requirement for spending. What is not in the budget cannot be spent. Yes, the CAFR has information the budget does not have. It has a different purpose; it contains the most complete statement of the financial facts: assets & liabilities (balance sheet); Income Statement. Details and goodies are in the notes to the financial statements.
Big evil thing that CAFR. A truly momentous discovery that there is such a thing and it contains . . . information!!
Like chimps looking at a wrist watch.
If people weren't so damned ignorant financial matters they never would have let local governments, where you can have an effect, get so deep in the shit.
Have you ever actually looked at a CAFR in-depth you fucking moron?
Why yes; yes I have, you gibbering ape.
Here is the IL CAFR: http://ledger.illinoiscomptroller.com/index.cfm/find-one-of-the-comptrol...
LMFAO!!! Let the riots begin.
I'd like to see the Governor's mansion surrounded by Hoverounds and walkers.
PANIC IN DETROIT...bowie (way ahead of the curve...by 40 years)
https://www.youtube.com/watch?v=AXxmIcsmpnQ
then...
PALM BAY, Fla. (WOFL FOX 35) - In his arrest report, police say Ronny Hicks appeared highly intoxicated, because his speech was slurred speech and he was acting confused. Since he was also operating a motorized wheelchair, the 54-year-old man was arrested for driving under the influence. Police say Hicks, from Palm Bay, was allegedly blocking the path on a pedestrian bridge inside a park near Margaret and Helen streets in Palm Bay. Police were called because of complaints.
http://www.fox5ny.com/news/32996541-story
Negative Ghost Rider...it would be mostly men and women in their 50's and 60's. I'm from Illinois and I know a ton of people who retired from their cushy state jobs after 25 years.
"We have no money now"
surprise - surprise - surprise
some folks had better start diggin out the ground some Silver that "aint money" and only cost $5 dollar to unearth, refine, and bring to market.....
yeah, mother fuckers - he who laughs last laughs fucking best.........
Wow, what a winning strategy.
You $5 silver is ONLY from existing copper mines. It's a byproduct of copper production. Want a silver mine? It will cost you $20/oz to dig it up, just so you can sell it for $16. But that's ok, it's just more socalist math.
sell?
what the fuck r u talking about and who fucking cares.....
how many 1964 Kennedy quarters can a $1dollar Federal Reserve NOTE PURCHASE?
Pay them in iPhones
They can always scrape the gold off the connectors and eat it.
Become expats, move to China, work for Foxconn, get $100/month Illi pension, and live like a millionaire (relatively) behind the Foxconn barbed wire fences.
Or same down to Mexico. Is that the plan or scheme ?
Let Obama and Rahm suck thier dicks and give them a free membership to Mans country.
7 billion? We are gonna need a bigger helicopter.
Ambulance in the back ground was a nice touch.
Well if your gonna have Zombies make sure they're old wrinkly ones with no teeth and cant run fast.
Gomer Pyle says it best...
https://www.youtube.com/watch?v=2TnkJ8_BmSI
Private Pyle: "I AM in a world of shit"
https://www.youtube.com/watch?v=xnTU4dKpoB8
Despite the delay, state pension funds will be paid in full by the end of fiscal 2016, Munger said at a news conference in Chicago.
How? With magic dust created from the rectum of John McCain?
He's been hiding his rolex in there.
"For seven years he hid that watch up his ass...and now I'm giving it to you."
Gee...Thanks!
What does this mean? Meanwhile there wil be no payments? Yeah that should work out fine.
Fiscal 2016 runs out June 30, 2016. That's a log wait.
Merry Christmas!
This is what political BS gets you. A promise in one hand and shit on your heel. I hate it for the people in lower Illinois - good group of folks. If they could just find that big flushing handle and send Chi-town into Lake Michigan and send Springfield a divorce decree, they'd all be doing quite nicely.
Hahaha, as a Central illinoisan you are one delusional fella. They would not be doing quite nicely. Downstate Illinois is about as low skilled as it gets. Its 2015 partner, not 1950.
As an ex-downstate-Illinoisan, I can tell you that Illinois without Cook County would do just fine. Or even Illinois without the six county Chicago metro area. Coal, oil and gas production is significant downstate. Caterpillar, John Deere, State Farm, and ADM all reside and produce downstate. Illinois has arguably the most fertile land in the world for corn and soybeans without having to irrigate. It would be a interesting to see which would happen first - Chicago starving or freezing to death - without downstate Illinois.
What are you smoking? The Chicago area, within Illinois, has a GDP of $590,000,000,000. That whole state is $766,000,000,000. Take out CAT and ADM you need to sell a lot of corn syrup buddy.
Bzzt. Acording to the Dept. of Commerce BEA, that $176B in GDP for downstate Illinois is larger than the GDP of 19 other states, including similar agricultural places like Nebraska and Kansas. I repeat, downstate Illinois would do just fine without the black hole in the northeast corner.
they are bankrupt you moron
People who live in rural PA say the same type of utter nonsense about Philly & the surrounding areas despite being large net negative on revenues vs service expenditures on a per capita basis.
Given the average demographic age of residents in Peoria, Belleville, etc I am going to bet the same thing applies too since elderly residents consume large amounts of gov't services with few revenues through sales or income taxes.
Wait 'til IL starts issuing IOUs, which then start to be exchanged at a discount, and residents then discover the pain of black market losses being Rahmed up their wallet areas.
Illinois needs to hire a Zimbabwe finance minister.
Hire a de Rothschild. Maybe they can open the Federal Reserve Bank of Illinois! Issue T-Bills and shit.
Coming to your 401k soon.
How we gonna buy our unicorn meat now??
Paid off in those new Illinois-printed three dollar bills.
With Rahm pulling down on the knob?
Mayor Daley on the front, with a black swan rampant on the back.
been there, done that:
http://currency.ha.com/itm/obsolete-banknotes/chicago-il-chicago-marine-...
up next: Force Majeur!
So many Black Swans swim about...
This is my naivette talking here. You can complain as much as you want about public retirements, but it is a legally binding obligation that was enetered into freely by both sides. I don't see how you can delay paying a legal obligation such as that while, at the same time, spening other government money for things that aren't contractual obligations. The salaries and benefits of most present employees are legal obligations only in that there is likely a fixed time that you have to give notice of layoffs. But the vast majority of government employees are not mandated in any way, shape or form. In fact, most government expenditures, other than for debt service and for pension payments, are not contractually obligated or legally mandated, yet most of these "nice to haves" don't seem to be getting reduced. Try telling welfare cases that their aid checks will be delayed and see the riot that will ensue.
No contract is valid if its impossible to complete. Tough shit boys.
Next time DO THE MATH!
You said " legal obligation " 5 times are you nervous? and define where it states these are " legal obligation " and MUST be paid...
.....aha, ha, ha, ha, ha, haaaaaaa! Ur kidding, right? Blood and the turnip, remember?
hahaha- he said legal, these are now referred to as undocumented payments. Fucking twats want it both ways. Fuck every one of them
Bill, it's language in a contract between the unions and the State of Illinois. Given court rulings on pension issues in California, the payments must be made. That the politicians were too stupid or got enough of a kickback to not realize pension costs would bankrupt them is moot.
I realize we're not a nation of laws any longer (see GM bankruptcy for a wonderful example of that). However, if we were, courts would likely rule the pension payments are mandated.
By the way, lifetime health insurance, often with no retiree premium payments or company's required, is a close second to retirement payments in terms of bankruptcy potential for state and local government. Often, health care costs are covered for life if someone works for as little as five years.
"Dreams Come Due: Government and Economics as if Freedom Mattered," by
John Galt, ISBN: 0-671-61159-3, Simon & Schuster, 1986
Notice that copyright date? What was written in that book is STILL valid today!
I guess they could sell assets to meet their obligations. Isn't this what our government would ahve us do if we couldn't pay?
Too funny. Tragic, but funny. Welcome to Detroit on steroids.
Haven't you heard, your lawless cunt president has suspended "legal obligations". It's every man for himself in this lawless land today
I genuinely wouldn't rule it out.
It was legal in only the narrowest meaning of the term. Crooked pols bought off their supporters with future money they neither had nor provided for. Following your logic had they legally contracted to award every State employee a $100 million termination bonus the taxpayer would still be on the hook for it.
So....you're sayin it's a 'legal obligation' then?
public employees are going for a ride - the BK is around the corner question is can it go till after the election
Anyone think of using IOUs to pay the pensioners - they should work...until they don't.
They can create a new ponzi network amongst the adjoining states by passing out lotto tickets from other states to their pensioners.
IOU's or Vouchers caused Arnold to pass into the twilight zone in California, 6 years ago?...I was there when it happened.
They worked the 1st week, after then 2nd week too many were calling foul. At the end of a few more weeks it pretty much fell through.
I'd say they buy 1 month to fix the problem.
Some accepted the voucher, mostly govt workers, other's not.
They mostly kept the Cali government operating.
Overpromise & underpay--it's the american way
But it's all Bread-n-Circus over at the Chicago Tribune:
http://www.chicagotribune.com/sports/baseball/cubs/
The people of Chicago likely don't even care, all full of sausages and beer.
It is about time they declared IL a national emergency and write off debts.
don't even kid
What they need is a community organizer to come in and organize the fuck out of things -
I know one guy, I think he's looking for a new job in about a year or so.
Clearly, Illinois' community organizers have abandoned this once great state after having spent all everyone's money.
Suck on it....corrupt unions!
Rahm knew noooothing about the $2.3 million in kickbacks to the Chicago Public Schools chief < CPS salary $250k >
http://www.chicagotribune.com/news/ct-barbara-byrd-bennett-plea-met-1013-20151012-story.html
Maybe so, but just WHAT is he gonna do to PREVENT it from happening again?
Every American taxpayer will soon be on the hook for the over bloated benefit package of some black socialist teacher somewhere in Illinois.
Dead, meet end.
Possibly suggest making Detroit the new headquarters for the annual Burning Man, and a tax free zone.
Just think of all the visitors.
Probably use to clear out some deadwood or buildings around the perimeter.
Promises were made that can NEVER be kept!
PERIOD!
Apparently the bond payments are still being made though...I guess it depends on who the promise is made to.
In Belgium 1/3 of the population is retired or lives on a government handout.
Everywhere I go, I see grey old people.
And the funny part is that most have a higher pension then what young people make in their first jobs during the first 10 years!
Then there's the debt... the deficit... a extremely large government system that employs over 33% of all working people.
We're FUBAR like you guys would say.
And who's handling the situation? Nobody. They just raised taxes on esentials from 6% to 21%.
And they want to make things more fair also!! Meaning, everybody with savings will need to pay a 15% tax on it and if you invest money in the stockmarkt through stocks or options, YOU NEED TO PAY A 30% TAX.
So money is flowing out of the stockmarket, taxes are constantly going up for years now, the deficit keeps getting bigger and in the next 10 years, we expect the retiree population to rise another 25%.
I still need to work about 30 years so... when my time will come I'll get a smile and a kick in the ass.
Maybe we should put a bounty on old people and have them shot on sight?
In the ussa the young are pissed and wish the old dead already,,, but nary a peep to the thieves in the U.S Gov. that stole 2.7 trillion from the social security system these useless eaters paid in.
yep but some of them old people might have logged a lot of range time so that could be a fun diversion
Don't worry, all those millions of engineers, scientists and doctors flooding in by the million from Syria and Afghanistan will save the system.
"Promises were made that can NEVER be kept!"
Promises were made that can NEVER be kept in a waitress economy.
There,,, fixed it.
Disclaimer: No insult meant to waitresses... married one. It's just these promises were made based on a industrial economy with a skilled workforce,,, which we have neither today.
only the tip, i promise
the chinaman pissed on the rug. it really tied the room together. this aggression shall not stand
Perrywinkle has the bright idea to tax golf, bowling, and cable bils moar higher.
Just file BK already!
Ponzi down..I repeat Ponzi down.
Illinois today, the USSA tomorrow. We're well beyond FUBAR at this point.
Maybe all the bankrupt states should band to gether in a non-contiguous "diss"-union. And then trade their own bankruptcies among themselves and build a huge bankrupt disunion without all the hassles of GAAP or business. Maybe BARTERTOWN for all ? They can swap commodities and foodstuffs to survive the meltdown.
Diss the union ?
As a resident of this state Id love to see the governor tell Washington we cant remit federal taxes collected this year, we have some state issues to deal with first, maybe next year. Because thats how its supposed to work. In my 40 years this state has been near the absolut bottom of states receiving federal money for the amount they send to DC. I hate the Illinois nazis as much as anyone, but when I see soem redneck southerner telling me we are broke because of our spending I want to bust their fucking face because its places like Chicago and New York that carry the hick farmers sucking off the subsidy tit. I would love nothing better than to close down the Red State military base money pit my remitted federal dollars go to and Veteran bullshit. If you were too stupid to go to school or learn a trade and volunteer to go kill brown people who have nothing to do with this country than your the problem, not some retired Illinois math teacher getting a $37,000 a year pension.
"$37,000 a year pension"
I think you got the digits reversed. $73K and UP.
Average annuity to the University system is $37,251, right from the article. Fucking read.
Don't believe everything the unions put out:
A teacher in Illinois who retired in fiscal year 2012 after 30 or more years on the job could expect an initial average annual pension of $72,693.
https://www.illinoispolicy.org/policy-points/average-government-pensions...
Go look at the pensions of HS teachers around the Chicago area.
Not uncommon to see pensions above $100,000.
The retired Illinoink teacher average is ~$50,500.
Karma's a bitch.
That includes administrators who skew the average higher. Look Im not defending the unions and frankly think collective bargaining for State employees should be banned but they are turning this into a giant distraction. Illinois has had over 50% of it's manufacturing base shipped out in the last 30 years. No amount of FIRE industry or waitressing jobs is going to make up for that. The rust belt is simply 20 years ahead of the Sun Belt on this erosion but make no mistake it will get there too eventualy. You cant build an economy on no income taxes, retirees, min. wage jobs and health care.
property taxes are the real minefield - for those who own
I work in Illinoink, I fully understand how much these administrators have raped the system. I saw where on superintendent in the northern suburbs had a pension in excess of 10 million, and the school ditrict he was in had a liability of over a billion. The rank and file should be buying pitchforks. But I'll bet at the time they were happy with the candy.
A few years back the Illinoink system for college savings went belly up, many people lost money they thoguht they were putting aside for college. This was the do-do in the coal mine.
This state is very corrupt and they keep spewing the same lines of shit. The bottom line is busineeses are leaving big time (both the Chicago area and downstate). The one thing staying behind is these pensions. End of the fucking road, regardless of who is responsible.
You can. It will just be a place like Brazil. It amazes me how much of the US continues to get hollowed out even from the 1980s/1990s. Seen it first hand in the PA eastern towns including Reading which was a manufacutirng juggernaut even into the 60s.
Looks like them getting any pension at all is 50/50.
Would bring to a head instantly if the States could somehow legally withhold Federal taxes.
Oh, please get a clue. The states never touch the money to begin with, it goes straight to the FedGov via the IRS. In fact it works exactly the other way round - the FedGov makes states dance to their tune by witholding highway funds, medicaid funds, and various other revenue-sharing funds.
If a governor gave his citizens shield from the federal government then absolutely it could work. Why should Illinoisans pay for Military bases in the Carolina's, Texas, Gulf - these are glorified fucking pork barrels and welfare programs. I bet Illinois could take care of all it's roads, medicare and programs 100% if it could keep it's wealth generated from within it's borders in it's coffers. I bet California and New York could too. You can laugh me off but some shit like this is going to go down sooner or later.
Um, if it weren't for Texas, this country would have achieved a net job LOSS over the past several years.
I'd love nothing better than to cast away your liberal shitholes of New York, Shitcago, LA, etc. etc. and watch them burn.
The rest of flyover country will be just fine without you.
A message from California:
Once the cities burn and the FSA shoot stabs and/or starves to death, the rest of us Californians are quite conservative country folk. Don't count us out were just out voted by the FSA.
You've chosen an appropriate state to reside in Markitect, and I hope you get the best of what IL has commin' to you.
Have you ever thought that the reason your state can't tell the federal government to fuck off on remitting the taxes collected to DC is that back in the 1860's your stupid fucking state killed people In the South to give that same Federal government more power ? You are getting what you deserve.
Dont worry, we sent 200,000 niggz back last decade and sending the rest right now, better educated and with some money. In 20 years time you'll probably working for them boy. Oh, and we'd kick your ass even harder this time.
I love the fact you pro government wanna-be fucking Chicago socialists like to trudge your knuckle-dragging sloped foreheaded asses in line to get your gobment cheese and free shit, then you want to bitch about it when you run out of other people's money. Fuck You.
As far as the War of Northern Agression is concerned, bring it you blue-gum lover. Where do you think all of the weapons and ammunition sold over the past two decades are being stockpiled? I'll give you a hint, it ain't where you live. I figured you would be one that would fight for the Free Shit Army and them Obumma phones, The natives in Chicago will parade you out in front as their token Wigger, then fill your Vanilla Ice White Cracker Ass with 9mm slugs after they have used and abused you.
Enjoy shoveling snow for the next 6 months and your time in the zoo with the animals. Like i stated before, shut the fuck up, you are getting exactly what you deserve. Deo Vindice.
You fit the defintion of some of the peckerwood white trash I grew up around in rural Lebanon County, PA. Same people who hated on everyone and anyone basically.
Your statement down voted 2:1 despite it being a basic fact. Like the same dopes on here who assert that the rural counties with aging and largely graying demographics in many rural parts of IL are somehow net revenue contributors vs services received on a per capita basis.
Same thing in PA too where the elderly rural white voters think that Philly and its surrounding counties are the cost sink when the problem is the rural and rapdily aging cities including places in SW PA and across much of the Coal Regions.
There is one absolute certainty in all of this. Every possible surce of revenue - taxes, borrowing, printing - will be bled dry before pension and/or welfare payments get meaningfully cut.
Great news! I am off to the liquor store to get my Illinois lottery tickets - as soon as I get the IOUs printed up.
They're just delaying a payment until the beginning of tax season.
If the Cubs make the World Series, will Illinois tax the World Series bonuses of the visiting team?
"If the Cubs make the World Series, will Illinois tax the World Series bonuses of the visiting team?"
If there was enough time and speaker Madigan sponsored the bill it would be rubber-stamped.
Illinois is the strongest pro-public union state. Where HS teachers get paid $100,000 to $180,000/yr with pensions in the low to upper $100,000s.
Holy cow!
In Springfield, the controlling democratic politicians (Madigan and Cullerton) are from Chicago.
All they want to do is raise taxes to please the public unions.
There is no compromise as far as their concerned.
So raise taxes they will. Forcing non-public union people out as well as businesses.
Simply raising taxes at this point won't help much, the state financials are too far gone. If taxes are raised a significant amount, even more working people will leave the state. Most of my friends are planning to leave Illinois because they know what will happen if they stay on. There is simply no fix other than a gigantic reset. I'm not sticking around Illinois and be a part of it.
Couldn't happen to a nicer bunch. Getting everything they deserve.
I would suggest that an overriding reason the Fed has propped up the markets these years is to ensure that these pension systems can routinely show growth in their investments and not net declines.
Between the baby boomers (who are staying in their jobs longer) and non-inflated returns, all these state/county pension funds would be negative year on year with more tax hikes to boot.
The whole country is Stockton on a timer.
Why doesn't the Fed just print money to pension funds at ZIRP - there's your new helicopter.
"Why doesn't the Fed just print money to pension funds at ZIRP?"
That IMHO is exactly what's going to happen.
Many articles show that the FED policies have actually HURT pension funds - althought intuitively one would think the opposite to be true.
Screw pensions, MOAR drops of weapons to Al-Qaeda, or terrorists have won!!!