Illinois ... An American Joke

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

New Jersey outlines its deficit - $11bn

One by one, the states are showing the desparate shape they are in. Previously we mentioned how Illinois had a deficit of $13bn, consider New Jersey with a deficit of $11bn. This is just the beginning of a long decline of states being able to meet their fiscal responsibilities. Furthermore, this reaches much further down as municipalities also face growing deficits. While "economists" (the same ones that couldn't or wouldn't predict the financial collapse) tell us that the US is no longer in a recession, states are reeling from unprecedented deficits.

http://www.newjerseynewsroom.com/state/new-jerseys-state-budget-deficit-could-reach-11-billion