In a previous post I wrote about the monetary issues plaguing Illinois. Well it has not gotten any better. By the end of June, the state needs to pay over $7 BILLION which it does not have. According to the following article, "Mr. Quinn presented a budget in March that would still leave the state with a $10.6 billion deficit. ". Mr. Quinn is the current governor of Illinois.
So if you think Illinois bares no resamblance to Greece, think again. Once Illinois has to make deep cuts to its budget, will there be people with bricks in the streets. I guess we will see.
But as in Greece the legislature is unwilling to make appropriate changes to how money is spent. Acting in a cowardly fashion, saving their electoral skins, they will defer making important decisions until it is too late.
"Illinois Comptroller Daniel Hynes said in his April report that the state's cash position for the quarter ending June 30 "looks exceedingly difficult." By June 10, Illinois must repay $1.75 billion, plus interest, in short-term borrowing.
Meanwhile, the state still owes billions of dollars to hospitals, universities, social-service providers and others. Mr. Hynes said the state's backlog of unpaid bills probably will exceed $5.5 billion at the end of June."
http://online.wsj.com/article/SB10001424052748703686304575228582377071698.html?mod=WSJ_article_LatestHeadlines
Showing posts with label Illinois. Show all posts
Showing posts with label Illinois. Show all posts
Friday, May 7, 2010
Monday, March 1, 2010
The Economic Destruction of Illinois
In a previous post regarding the financial condition of the US, I mentioned that for the time being I would not consider state issues. This post is a little detour.
The state of Illinois has an estimated $13bn deficit. That number is one-half of the revenues that the state brings in. Of course the revenues of $27bn is also an estimate for this year. Furthermore, the pension systems are underfunded to the tune of $62bn. In one county, the sheriff's patrol cars have been repossessed.
There is no way that Illinois can recover without federal aid. But that is only Illinois, what about California? New York? For example, California faces a $20bn deficit. And that is for the current fiscal year. Next fiscal year, 2010, the shortfall is predicted to be $40bn.
As reported by The Telegraph, according to the Economic Policy Institute states face a shortfall of $156bn in fiscal 2010. In any case, the federal government can only subsidize the states for a limited period of time. So while the President and Congress fiddle with health care and wars, Rome is burning.
http://online.wsj.com/article/SB10001424052748703795004575087733732827118.html
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7338857/Dont-go-wobbly-on-us-now-Ben-Bernanke.html
http://sunshinereview.org/index.php/State_budget_issues,_2009-2010
The state of Illinois has an estimated $13bn deficit. That number is one-half of the revenues that the state brings in. Of course the revenues of $27bn is also an estimate for this year. Furthermore, the pension systems are underfunded to the tune of $62bn. In one county, the sheriff's patrol cars have been repossessed.
There is no way that Illinois can recover without federal aid. But that is only Illinois, what about California? New York? For example, California faces a $20bn deficit. And that is for the current fiscal year. Next fiscal year, 2010, the shortfall is predicted to be $40bn.
As reported by The Telegraph, according to the Economic Policy Institute states face a shortfall of $156bn in fiscal 2010. In any case, the federal government can only subsidize the states for a limited period of time. So while the President and Congress fiddle with health care and wars, Rome is burning.
http://online.wsj.com/article/SB10001424052748703795004575087733732827118.html
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7338857/Dont-go-wobbly-on-us-now-Ben-Bernanke.html
http://sunshinereview.org/index.php/State_budget_issues,_2009-2010
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