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.

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Stan Smith's picture

   My in-laws live in small town near Peoria.   Both were cogs in the community while working,  but now retired really have no reason to be there other than they couldnt envision living anywhere else.   My in-laws property taxes are more than mine, and they live in a house less than half the size of mine,  and I live in great school district in St. Louis County -- with what I'd consider to be high taxes.    It blows me away that their property taxes are that high.   It's one of those shocking, but not surprising things.  

   The concern I have most of all is that the services that will be the first to go in Illinois are not going to be ones up in Chicago, their going to be down state ones.   

kumquatsunite's picture

This is the Bolshevik "reeducation" of money. Those who have it are required to cede it to the "govt" employees who know better what to do with it. There's a great scene in Dr. Zhivago where Zhivago brings some firewood home to the small room provided in his own house, which now is home to many families. The wood is taken from him because it is not "his." This is what we are seeing in the US.

HRH Feant2's picture

That inability to see a way out of their current situation is called cognitive dissonance. They should sell and leave now while they can.

Lukacko's picture

They better figure out the 3 seashells, quick!

arby63's picture

Leftists as far as the eye can see. I hope it gets miserable. The coming civil war will likely start there 

Greenie's picture

Feds won't bail out Illinois. But they may guarantee their bonds. Or just imply that they will backstop them. Game on. Endless supply of money. Everybody happy, pols back to their backroom corrupt shit, bondholders happy.  Just float more bonds whenever need more money. Wall Street will be falling over themselves  buying them. Don't pay the little vendors, they don't matter. Let them be the ones to go bk.

Maybe game will start around the time when children go back to school in the fall. Teachers go on strike. Gotta save the children.

I'm sure there's a plan.

kumquatsunite's picture

The actual number is that 30% of teachers would not be needed (and no salaries, pension plans, or UNION DUES) if the illegal mexican kids weren't flooded into the system. These "teachers", who have become union paying members, include all those "translation" providers. Under what condition does the Invasion of the US require the US property taxpayer to educate the foreigner's kids?

NO US taxpayer should have their monies appropriated via property taxes and ceded to a foreign govt via so-called "education." In noting that all children have a right to an education, the legal system has ILLEGALLY *teacher union lawyers* colluded with the educational entities (local school districts) whose employees and School Supervisors and School Principals, in particular, are grossly overpaid. 

Recently watched a principal at an all black school (a black principal), who apparently did not know proper verb usage (aka eubonics). And yet, there is endless whining about the "discrimination" against blacks. 

This begs the question, what Allegiance does the US owe Mexico...are taxpayes required to educate mexican kids. There is no one More At Risk in the school system than the white male student; he will be drummed out of school, denied access to scholarships and support so that these "educators" can self-glorify for helping the non-white, especially illegals. Find a meat packing town (generally a town under 100.000) and you'll find property taxes stripped from the town to educate illegal kids. 

It won't end well for the US if this continues. Its time that property tax payers filed suit against the illegal use of their funds.

chosen's picture

If all the illegals in California were deported, along with all their relatives, half of California elementary and high schools would close.  Now you know why liberals support illegals.

Drop-Hammer's picture

Great point.  My dad lives 15 minutes north of the Cali-Mexico border.  He told me that Mexican national school-children (not illegals, but Mexican kids who live in Mexico) are bussed every day from Mexico and attend schools in his city.  My response was WTF?

Also, Illinois as a whole has issues regards its pensions, but that is smoke that is years off into the future and won't be paid in full anyway.  However, the "real" money extracted in taxes from you Illinois evil YT's goes to supporting millions of useless niggers and spics (illegals) who reside in Chicongo. Evil YT can only take so much before he either fights or flees.  Most seem to flee.  

truthalwayswinsout's picture

Sorry but with all the Niggers killing Niggers and the massive corruption in the state, we can't afford to pay anyone.  They have Latin Penis envy; they want to be like Venezuela.

Spitball's picture

Having been raised, and worked most of my life here I've seen the devastation politicians have brought to this state. Illinois was a great place at one time to grow up in.
Now it's a cesspool of corruption and theft. It's taken some time to slowly unwind my life from this state, so I, like tens of thousands of others can leave this state once and for all.
There's no opposition anymore to the Chicago democratic machine. The republicans have caved, and are cashing in before the bankruptcy.
The taxes here are the highest in the nation when it comes to property, SSA, income, sales, and other assorted fees. I never set foot in that giant swamp hole of a city SHITCAGO.
I can't wait for the day when I can finally say good riddance Illinois.

BigCumulusClouds's picture

Actually the income taxes aren't that bad in IL. It is the property taxes that are killing everyone.

Mr Perspective's picture

"a moth-eaten collection of lies, one time deficits repeated endlessly, and financial wizardry statements designed to disguise Illinois’ real problems: failure"

Maybe they should consider an honest audit of the system. It is quite apparent that, like all govs in the US, the money is being siphoned off to the criminal enterprises that are attached like leeches.
But hell, it's not like the fiat is real anyway in this credit based economy right?

Confucious 222's picture

There's a THRIVING ECONOMY somewhere in Libtard Fantasyland.

It's the one their Media keeps saying is such a success

It must be in-between the stripped down cars with no wheels vs. the burned up cars with no interiors

Somwhere near the piles of old needles and crack pipes, where diseased addict prostitutes offer to Add Value to your cock for twenny bucks

Now THAT's the thriving economy PrettyFace on TV be talkin bout

Thethingreenline's picture

There should be a federal tax/ subsidy for states like Illinois which is having difficulty making payments. This is a state mind you! No a city or county! High priority payments should go to state and municipal workers pensions, to shore up the system. This approach would trickle down to local Illinois economy and improve tax receipts.City, municipal and state workers were given a deal and the state and Feds need to stand by it. The jealous ones who did not earn a pension don't realize the benefits their local economy would receive from continued funding of these pensions. For all those who are jealous, be. Are full what you wish for!

Aubiekong's picture

The pensions are the root of the problem.  They are unpayable and were based on fantasy economic return.  In short they are a fraud by the unions and public officials.  In the end the pensions will collapse and the state will start from zero...

Thethingreenline's picture

A 'fraud' PROMISED by the state ergo US government. Pay the money they are owed!

rls9642's picture

The money isn't there to pay. That's the whole point dumba**.

Thethingreenline's picture

There is money! Money for constant war, handouts to foreign governments, Fatherland security, etc.....
The money will trickle down to local state economies. No, Illinois can't print money, but FED can and should. If those pensions collapse, that whole state will collapse. Be careful what you wish for! People slaved for years and were promised those pensions and should be payed out!

Thethingreenline's picture

A 'fraud' as you call it, PROMISED by the State and ergo US Government. Pay the pensions they were promised!

ClickNLook's picture

Why Union and government people get pensions and the people who work for private companies don't?

Isn't it a discrimination case?

Another thing: when these pension pyramids fall, everyone suffers.

Thethingreenline's picture

You are correct, when these pensions fail, everybody suffers. TTGL point EXACTLY!

shovelhead's picture


Suck eggs. You voted for them, you live with their lies.

Why should I pay for your stupidity?

Thethingreenline's picture

TTGL doesn't know why the private company workers don't get a pension. The union and government workers get a pension because that's the deal they made and the deal needs to be honored and WILL be honored. You are asking the wrong question. This pension 'crises' is all a scam against those workers who slaved for years, in less than ideal circumstances, knowing there was light at end of tunnel. This scam is due to jealousy.

bloofer's picture

To demand that the federal government absorb the costs of Illinois fraud is, obviously, a demand that US taxpayers as a whole pick up the tab for the fraud.  Sure, the Illinois economy could benefit from stealing from the rest of the nation.

aloha_snakbar's picture

What would Ram A-Manhole do...

hutnela's picture

What do iraqi roads and dirty assholes have in common....? Illinois

tlnzz's picture

They will go completely bankrupt before they will cut benefits for illegals and the "free shit army" welfare rats.

silvercity's picture

Welfare is mostly federal money so it is an asset to cities to have large populations of welfare recipients. That is why sancuary cities exist. Think about it. The city of Fergusan,MO. was getting 54% of its revenue from it's 67% black population thru fines in it's part-time municipal court. Why else would that city encourage a high black population. The new Jim Crow ways. And it pays cities well.

bloofer's picture

Apparently you have never lived in a city that attempted to fund its city government with fines levied against its own residents. My own nearly all-white city attempted to do this some years ago. I am still astonished that none of the people involved in the city government were shot. As it happens, those people are all dead now, and I had nothing to do with it.

Silver Savior's picture

Why doesn't Janet just get a wad of money printed and just throw it at them. It's clear she does not care about anything.

And what will they do when the poor take up all the manhole covers and sell them as scrap to feed themselves?

EBT excepted's picture

...toid woild sanctuarry state...but da ebt still be good...

papaya's picture

"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."

A sensible person would think that is is high time to demand that political wages be cut, drastically, until the siuation is resolved. Either that or a tax revolt. It seems high time to cut the fat off of the hogs. 

silvercity's picture

Not if the sensible person was the one getting the pay. Until Republicans start offering benifits to voters to vote red, blue will rule, especially in Ill.

Ace006's picture

Discipline is called for but the FSA want "benefits."  End of story.  End of Illinois and Calif.  End of republic.

Silver Savior's picture

Illinois has been doing bad for a long time. You even hear jokes about Illinois in 1980s and 9Os movies. Nothing tops California though. Large economy but no plenty. Just tax upon other taxes.

Lost in translation's picture

Yep, well said.

CA is a two-tier society.

What passes for MC in CA is, in reality, upside down and heavily indebted.

BigCumulusClouds's picture

I used to live in that area. We made Radio Flyer wagons, Singer sewing machines, Quazar TVs, Schwinn bicycles, etc etc. Houses increased in value. All that is gone now. The government made commodity manufacturing jobs to costly to employ US workers. And the property taxes took all the equity out of everyone's home investment. Thus the jobs went to countries where they didn't have Title 7 lawsuits and minimum wage laws. And the people are leaving while they can still get some of the equity that might remain in their home. This is what happens when you don't vote for people who have even a modicum of libertarian philosophy.

decentralisedscrutinizer's picture


Almost all the world’s economic and political problems revolve around the hegemony of a global corporate cartel, which is headquartered in the US because this is where their dominant military force resides. The US Constitution is therefore the “kingpin” of an all-inclusive global financial empire. These fictitious entities now own the USA and command its military infrastructure by virtue of the Federal Reserve Corporation, regulatory capture, MSM propaganda, and congressional lobbying.


The Founders had to fight a bloody Revolutionary War to win our right to incorporate as a nation – the USA. But then, for whatever reason, our Founders granted the greediest businessmen among them unrestricted corporate charters with enough potential capital & power to compete with the individual states, smaller sovereign nations, and eventually to buy out the USA itself. The only way The People can regain our sovereignty as a constitutional republic now is to severely curtail the privileges of any corporation doing business here. To remain sovereign we have to stop granting corporate charters to just any “suit” that comes along without fulfilling a defined social value in return. The "Divine Right Of Kings” should not apply to fictitious entities just because they are “Too Big To Fail”. We can't afford to privatize our Treasury to transnational banks anymore. Government must be held responsible only to the electorate, not fictitious entities; and banks must be held responsible to the government if we are ever to restore sanity, much less prosperity, to the world.


It was a loophole in our Constitution that allowed corporate charters to be so easily obtained that a swamp of corruption inevitably flooded our entire economic system. It is a swamp that can't be drained at this point because the Constitution doesn’t provide a drain. This 28th amendment is intended to install that drain so Congress can pull the plug ASAP. As a matter of political practicality we must rely on the Article 5 option to do this, for which the electorate will need overwhelming consensus beforehand. Seriously; an Article 5 Constitutional Convention is rapidly becoming our only sensible option.


This is what I think it will take to save the world; and nobody gets hurt: 28th Amendment


28th Amendment:


Corporations are not persons in any sense of the word and shall be granted only those rights and privileges that Congress deems necessary for the well-being of the People. Congress shall provide legislation defining the terms and conditions of corporate charters according to their purpose; which shall include, but are not limited to:


1, prohibitions against any corporation; a, owning another corporation; b, becoming economically indispensable or monopolistic; or c, otherwise distorting the general economy;


2, prohibitions against any form of interference in the affairs of; a, government, b, education, c, news media; or d, healthcare, and


3, provisions for; a, the auditing of standardized, current, and transparent account books; b, the establishment of state and municipal banking; and c, civil and criminal penalties to be suffered by corporate executives for violation of the terms of a corporate charter.


ClickNLook's picture

Roads, I thought that was one of a few things we needed government for!

I bet they will still collect tolls.

ResistTemptation's picture

I work for the State of (legally cant say or I can lose my job) and I have to say its scary for respectable family men like myself. You guys keep saying the "fuck the employees" but we didn't cause the $$ problem and I am not some lazy asshole that sleeps 1/2 the day and sweeps leaves back and forth the other half. I have helped countless people and most certainly saved lives. I take my position very seriously. Over the years many things have changed and I can see EXACTLY how to fix the problem. HOWEVER the slush funds and the unbelievable amount middle management positions is simply unsustainable.

I completely understand the hate but lets think back 30 years ago ... nobody but lazy bust outs or the unemployable 2nd cousins of some politicians sister-in-law wanted State jobs because they didn't pay as much as the private sector. How that worm has turned and here comes the water works.

Whistleblowing?? HAHA what a joke. You blow and you get blown away!

I've been a long time Libertarian and hated myself for the conflicted life I've lived. However I do have the 3 survival mediums Lead , gold and Scotch . Im Really trying to BTFD but its not the forte I'm educated in so maybe we will make it maybe not , but you can bet your ass I AM a man of action when the fateful day finally does come I will be in the ditches with the other patriots fighting for freedom.

Oh ... I am looking for a crash course in BTFD. Thanks .

konadog's picture

I worked for the gov for about a decade, but I just couldn't stand the dysfunction and stupidity so I went back to the private sector. You might want to do the same because I guarantee you are going to get screwed. The politicians and media sycophants have spun the pension as the problem in order to deflect from their own incompetence, but the real problem is the idiot govt managers and appointees that lack the brains to keep TP stocked in a row of outhouses (at least the ones I worked for couldn't). There wouldn't be a pension problem if these twits could prioritize and manage because it wouldn't take twenty people to do the work of one. Gov wages are well below market (my annual salary quadrupled when I went back to a real job). The below market wages are supposed to be made up by the pension and job security. I guarantee they can't pay the pension and even job security is a question mark so you are going to get the shaft. You may as well get a raise and take a private sector job because you will be much better off in the long run.

Greed is King's picture

One down, forty nine to go.

UpTo11's picture

not real sure, but did the US congress pass a budget the first few years of obama?

UpTo11's picture

Office of Business and Workforce Diversity? LOL

vegas's picture

Bill Shakespeare had the right idea; "first thing we do is kill all the lawyers". Illinois is filled to the brim with scumbag Pols & corrupt local governments. It takes the voters to do it, but the ony people left in Illinois are either members of the "free shit crowd" or elderly waiting to die cuz they don't have the money to move to Florida. Neither of these groups is gonna upset the applecart and vote these parasites out of office cuz they want the benefits and don't give a flying fuck who pays for them or where or how they get the money. So, nothing is gonna change until the math says "no more", and people refuse to loan these deadbeats another dime.



Ace006's picture

The "kill all the lawyers" quote is misunderstood.  After Jack Cade finishes his lunacy about his plans for socialism and stuff for the FSA, Dick the Butcher utters that line which means remove the impediment of the law.  His objection was to reality not corrupt or venal lawyers.

stokr's picture