Unable To Pay Bills, Illinois Sends "Dear Contractor" Letter Telling Firms To Halt Road Work On July 1

Tyler Durden's picture

Authored by Mike Shedlock via MishTalk.com,

The state of Illinois has not passed a budget for close to three years.

Arguably it’s just as well because Illinois budgets for decades have been nothing but a moth-eaten collection of lies, one time deficits repeated endlessly, and financial wizardry statements designed to disguise Illinois’ real problems: failure to rein in spending coupled with a very business unfriendly environment.

As Illinois’ bond rating careens towards junk, Illinois Unpaid Bills Jumped to $14.3 Billion. Today, the state told contractors to halt roadwork other than that required for safety.

Dear Contractor

I do not have a link, but here is the letter in image form.

This does not raise much alarm in Illinois has these kinds of letters went out last year as well. It’s simply business as usual in Illinois.

My IDOT contact, who wishes to be left unnamed, reports …

Hello Mish


Last year when they did this the extra work bill to the state cost millions of taxpayer dollars. At the last minute, the shutdown was averted but not until the shutdown measures were employed and thus extra cost was due to contractors and consultants.


Look out for the Road Builders Association to come out with an estimate of what it will cost this time around after the letter today.


Last year, the supplier for paper and toilet paper had not been paid and thus various offices were reportedly cut off of supply. IDOT employees were going to have to work from home due to the potential unsanitary conditions.

Five Illinois Universities Rated Junk

Yesterday, the Illinois Policy Institute reported MOODY’S DOWNGRADES 7 ILLINOIS UNIVERSITIES, 5 ARE JUNK.

Everybody wants to blame the downgrades on the state’s current budget impasse. The stalemate of nearly two years has led to cuts in state appropriations to Illinois universities. But the universities’ financial difficulties started before the state’s budget gridlock and are largely of their own making. Illinois colleges and universities have long overspent on bloated bureaucracies and expensive compensation and benefits, prioritizing administrators over students.


For years, university and college officials across the state have hiked tuition to pay for administrative hiring sprees, generous executive compensation and out-of-control pensions. Their spending priorities distorted university finances long before the budget impasse began.


The number of administrators in Illinois’ universities grew by nearly a third (31.1 percent) between 2004 and 2010. At the same time, faculty only increased 1.8 percent, and the number of students only grew 2.3 percent.

Illinois Tuition Fees

Retirement Costs Soars

Blame Who?

It is easy to blame Governor Rauner, but he is last on my list. Illinois has been in trouble for decades. The state’s only solution has been to tax, and tax, and tax.

That is precisely the same position as Chicago Mayor Rahn Emanuel.

The result is easy to predict.

Illinois’ Economic Growth is Worse than During the Great Depression

Illinois’ total state economic activity has increased by only 4 percent since 2007, which is lower than the U.S.’ 10 percent GDP growth during the worst decade of the Great Depression according to the Illinois Policy Institute.

Illinois Employment

Feed Me

Illinois Debt Backlog

It took $31.6 billion of new tax revenue to reduce the backlog of bills by $1.3 billion. But the complete picture is much worse as Illinois’ pension debt rose more than $25B from 2010 through 2015.

Failed State

  1. On June 4, 2017, Politico reported How Illinois became America’s failed state.
  2. The Heratige Foundation beat Politico to the idea by a mile with its September 28, 2015 analysis Illinois: The Anatomy of a Failed Liberal State.
  3. The Chicago Tribune is behind the times with its January 3, 2017 analysis, Illinois in danger of becoming a failed state.

Illinois is not in danger of becoming a failed state, it is a failed state. I have been talking about this for years.

Five Desperately Needed Reforms

  1. Municipal bankruptcy legislation
  2. Pension reform
  3. Right-to-Work legislation
  4. End of prevailing wage laws
  5. Workers’ compensation reform

Number one on my list of Illinois reforms is bankruptcy legislation. It is the only hope for numerous Illinois cities whose hands are also tied by union-sponsored prevailing wage laws.

Despite massive gains in the stock market since 2009, Illinois pension plans have gotten deeper and deeper into the hole.

Even a modest pullback in the stock market will sink numerous Illinois pension plans. I expect much worse than a modest pullback.

Tax hikes are not the answer. Reform is the answer, and bankruptcy reform is at the top of the list.

Required Pension Contributions to Double or Triple

Inquiring minds will also wish to consider Required Pension Contributions of California Cities Will Double in Five Years says Policy Institute: Quadruple is More Likely.

The same fate or worse faces Illinois.

Madigan Sponsored Problem 

The problem is on Speaker Madigan’s side. He insists on tax hikes first and reforms second.

Governor Rauner has held out and I support that policy. Once the governor agrees to tax hikes, no reforms will ever take place.

Illinois is Bankrupt

Illinois is essentially bankrupt. Unfortunately, there is no provision for states to declare bankruptcy.

States can default, however, and default is an easy prediction for Illinois’ public union pensions.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
silvercity's picture

Trumps biggest enemies are Republicans. Get your head out of the sand.

gregga777's picture

But, don't you all worry about the Illinois government's political parasites.  They are doing just fine and they'll be riding that gravy train to the very last moment.  Just before the train reaches the abyss, where the bridge is out, they'll jump off the train.  As the train lies in a broken heap at the bottom of the abyss they'll all say:

"Well.  No one could have seen that coming."


silvercity's picture

True that! Same for Cali's pols and Conn's pols and NY's pols and so on and so forth.

Infinite QE's picture

An effect of having the minorities become the majority. Then they place their fellow chimps into positions of power and eventually, all the white-man's money is spent.

farflungstar's picture

Hard truth to swallow for some. End result of Africanization is always the same, whether in Rhodesia, South Africa, Detroit or Chicago. 

Lostinfortwalton's picture

Cops in Baltimore have gone to 12-hour shifts because of the high crime...

silvercity's picture

Because no city or state in the history of man has ever had these problems without also having large black populations? There used to be a wise saying,"follow the money". If you follow the money from 1950 in Detroit, you will not conclude that poor blacks are to blame for the financial collapse. If you follow the money for East St Louis from the 1920s, you will not conclude that poor blacks were reponsible for the financial collapse. But it is an American tradition to blame poor blacks for financial collapse, rather than rich white banksters.

SeattleBruce's picture

It's not so much racial, as it is cultural.  It's not so much ethnic as it is tribal conflict.  Biology proves that every human being's differences with every other human, even men and women, arise from only 1/2 of 1% of of our genetic makeup, meaning we're 99.5% identical.  Look in the mirror.  You have found the enemy, and he is YOU.

Drop-Hammer's picture

The evil YT Illinois tax-payers supporting millions of useless niggers and spics.

itstippy's picture

For many decades the Chicago area was a major manufacturing and industrial center, transportation hub, and corporate headquarters/financial powerhouse.  The political system was corrupt and inefficient as all Hell, but it still worked because the area was so very prosperous.

Today the manufacturing jobs are all but gone, sent overseas or relocated to the South.  The Chicago railyards and warehouses and distribution points aren't nearly as important; roustabout jobs are gone by the hundreds of thousands.  The corporate headquarters and financial/insurance powerhouses have replaced their armies of clerical workers with automation (no more "oceans of tits" typing pools in the big buildings).  Those were all good-paying jobs that supported the area economically and made the area middle-class friendly despite the political corruption.  With all the jobs eliminated, but the political shit structure still intact, the Chicago area and entire State Of Illinois is completely fucked.

The jobs are NOT coming back.  The debts are NOT going away.  The political shit structure will NOT relinquish power voluntarily.  Illinois is Greeced.  

Infinite QE's picture

Greece will always be appealing for it's beauty. Cannot say the same for Illinois however. LOL.

gregga777's picture

Yeah, for some insane reason The Boeing Company moved their headquarters from Seattle to Chiraq.  But, they didn't bring any manufacturing jobs with them.  I wonder how long it will be until the get the f*** out of Chiraq just to save their own skins.  

markar's picture

It's only a short walk to bribe UAL purchasing managers.

Lostinfortwalton's picture

Apparently a lot of Boeing workers who have to work troubleshooting desks for the airlines on a shift basis are not happy at all about commuting to and from downtown Chicago on a shift basis outside of normal hours because of the high crime. Then there are the Boeing employees who got sent from Seattle to St. Louis........

GunnerySgtHartman's picture

I've been wondering that myself.  What's keeping them in Shyster-town, anyway?

1904AUSTIN's picture

"The political system was corrupt and inefficient as all Hell, but it still worked because the area was so very prosperous."

Reminds me of a tick on a dog's butt......oh.....and Detroit.... Venezuela......Cuba....et al.

bloofer's picture

As a side note, I can vouch for the disappearance of secretarial and clerical jobs. Up until about 2000, clerical workers were in high demand. Anyone who could type, look presentable, and could fit into a pair of pantyhose could go to a temp office and be working the next day. And when that job ended, they could be working somewhere else the day after that. Or you could easily land a full-time clerical job. I remember it well. Some time shortly after 2000, these jobs disappeared.

When secretarial/clerical jobs dried up, it put whole armies of women out of work. It also probably put a lot of temp agencies out of business.

Korprit_Phlunkie's picture

The political system was corrupt and inefficient as all Hell, but it still worked because the area was so very prosperous.

This also describes modern day california, especially silicon valley.

rejected's picture

"Neither Wall Street nor corporate boards and CEOs were smart enough to understand that moving jobs offshore also moved US consumer incomes and purchasing power offshore. In other words, the financial and business leadership were too stupid to comprehend that without the incomes from high value-added, high productivity US jobs, the American consumer would not have the discretionary income to continue in his role as the economy’s driver." 

Paul Craig Roberts.


There it is,,, in a nutshell anyone with operating neurons (excepting snowflakes) can understand.

The man speaks nothing but in your face truth.  His site will likely soon disappear because people don't want to hear the truth. I cannot think of any site that comes close to Roberts when it comes to truth and hard facts.  

No,,, I have no connection, other than reading his articles, with Mr. Roberts or his website.

No, the jobs won't be pouring back because the skills and trades no longer exist.  All that's left is lobotomized college graduates of government funded colleges. Skills and trades are today looked on as demeaning and laughable as Americans go to their McDonald's and Walmart jobs where everybody is a 'manager'. 

Some real life experiences.:

My wife shopping at Walmart comes out to find her truck filled with trash. Another shopper said she witnessed some of our fine Americans throwing their trash from their vehicle to my wife's vehicle. She could not get the license. To top it off the trash was not in bags. My wife had to go in Walmart and buy trash bags, then spend 30 minutes cleaning the back of her truck.  Americans have become the most despicable life forms on Earth.

Next up:

My wife visited a grocery chain called Publix. We have spent a week trying to get a prescription. Today she talked to one of their now part time employees. The pharmacy has made all employees part time with only 16-20 hours per week.  More of that saving money I suppose. America in a nutshell. 

I swear, I don't know how much longer this can go on. Insanity on every level!

kumquatsunite's picture

Please do not forget the joy of "Disability" payments. While the Welfaremart shoppers may be spending their uterus-funded benefits, men can still get the "disability." Yesterday on the great and glorious Judge Judy, a young-middle aged man explained to Judge Judy about exactly why (ah the myriad of woe is me!) his physical disabiities keep him on disability and about how his "caretaker" has to do so much for him. Of course, his "caretaker" is his mother-in-law...to which Judge Judy made the one-hand-washing-the-other move. Ah yes, Disability...where do these people find these docs?

how_this_stuff_works's picture

"Ah yes, Disability...where do these people find these docs?"

I would imagine by a referral from an attorney.

surf@jm's picture


What is it with failed socialist governments and toilet paper?.......

Is there something I`m missing in regards to socialism and basic sanitary self practices?........

Jethro's picture

Socialists like to wallow in filth.

Stormtrooper's picture

All of that toilet paper has been sidetracked to print Federal Reserve notes.

hutnela's picture

The asshole of America that is Illinois uses unsustainable quantities of TP to wipe its self every time one of their politicians speaks.

1904AUSTIN's picture

Illinois is circling the drain due to Lib-tard policies and crime...due to Lib-tard policies. But good news.....not a single legally-possesed gun in sight.

HK21E's picture

That's because I carry mine concealed here in the People's Republic of Illinois. 


I will give you two words that sums up about 90% of this state's problems: Mike Madigan.

corporatewhore's picture

where i live i can either buy a home in Illinois or Missouri.  The real estate taxes in Missouri are high enough.  Illinois taxes are insane.

The school systems may be open this year for only a limited amount of time--like 2 months if tv reporting is true.

I know several contractors with the state that haven't been paid for years and are owed mucho donero.

Many of the hospitals haven't been paid and are owed millions.

What a mess.



gregga777's picture

When those monthly welfare checks stop and the USDA SNAP EBT cards stop working Rahm Emanuel from Israel is really going to need those Israeli trained cops to prevent the Free Shit Army from hanging him from the nearest lamppost.  

TalkToLind's picture

Nah, he's got dual passports. A quick 8 hour trip on El Al and he's home free.

silvercity's picture

That would require the Federal gov. to collapse before Chitcago. Not gonna happen.

rejected's picture

The only difference between the national government and the States is the ability to print whatever they need. The whole shit show will go on until the world finally comes to grips with the fact the Federal Reserve dollar isn't worth the paper it's printed on. It's all pretend and extend. The stocks go up everyday, there's 100% employment, bullshit upon bullshit upon bullshit. The entire economy is an illusion. Everybody BELIEVES because to do otherwise would wreak havoc on their fantasy. The entire West is busted. All they have is the credit they print and a military to take whatever they want,,, like a horde of Red Army ants destroying everything in their path just to survive.

Puerto Rico, Illinois, Detroit, Philly and all the rest are just open sores of a incurable cancer.

1904AUSTIN's picture

Sounds like the global elite lib-tards are almost ready to push the Easy button and start the war.

hootowl's picture

The FED, the B of England, and all their sister moneysuckers and permawarmongers of the world are the beasts that are sucking-up all the wealth of the world.

All banksters should be hanged......and we all know where we can find them.

Sam Spayed's picture

"Puerto Rico, Illinois, Detroit, Philly and all the rest are just open sores of a incurable cancer."


Leftism is the cancer.

TalkToLind's picture

Did y'all Illinois goyim get y'all state tax refunds yet?

hutnela's picture

They sent the tax refund in the form of chuck-e-cheese tokens.

silvercity's picture

Didn't pay any myself, but all my family members got their refunds post haste.

Sam Spayed's picture

What a shithole Illinois is.  Democrats could fock up a wet dream.

silvercity's picture

Lots of beautiful places in Ill. and lots of nice, kind people also. Why do you seem to believe that the government workers and politicians are Illinois?

CJgipper's picture

And I'm supposed to believe that the FED is tightening with this happening?   LOL.

Korprit_Phlunkie's picture

Illinois is FILLED with James T. Hodgkinson's. Wait til more and more stop getting paid, especially the retired public servants. You want to see some angry demon rats, go to the midwest. Brainwashed since kindegarten.

Thisfuckenlife's picture

Good. They'll start to turn on their Democrat overlords and security will become issue #1 in the state as the police union becomes the next domino to turn against the state

bloofer's picture

That sums up the Democrat (and lib) constituency very well: government employees/pensioners and the rest of the grifters leeching off of the productive people, to the point of impoverishing them.

While government employees do their nine-to-five with secure incomes and (presumed) pensions, the private-sector person is winding up their graveyard shift at the gas station at 6:00 am, just in time to get the kids off to school and head for their second shit job. Believe me, I've been there/done that.

Thisfuckenlife's picture

Glad to see it's finally all coming down on their heads, this rotten, miserable state of citizens so entitled they think it should always be someone else to pay the bill for them! Pity the children, not the adults who Deserve all the hurt a properly functioning market can give them.

Oh and fuck the creditors too who invested in this miserable state for so long and kept it running, may they never see a half penny return on their investment. Enablers of corruption, one and all

silvercity's picture

For every dollar that Ill. sends to the Federal government, Ill gets betreen 88-92 cents back. Seems like Ill is paying other peoples ways, maybe yours. 

Able Ape's picture

The MOTTO of ALL Politicians: "What? Me Worry?".... and you see the results...

SmittyinLA's picture

Do they send out "dear refugee contractor" letters too or the invasion continues regardless of budget?