Constant Reminders Of Illinois’ Fiscal Mess

Every time I question whether my decision to leave Illinois is the correct one, something I see, read, or hear shortly thereafter suggests I’m right. From the editorial “It’s worse than you thought” on the Chicago Tribune website this morning:

Fans of classic Peanuts know that, once again, Linus van Pelt spent this Halloween night waiting for the Great Pumpkin. Each year as Linus crouches amid the vines, embarrassed but unbowed, we think of bright-eyed Illinois lawmakers who wait, and wait, for the economic boom whose revenue windfalls will pay for all their overspending, overborrowing and overpromising.

Alas, no Great Pumpkin. Linus is stuck with perpetual hope. And alas, no economic boom. The lawmakers, from Gov. Pat Quinn on down, are stuck with pension, budget and related wreckage for which they can blame no one but … Illinois lawmakers. Twice this week citizens got new warnings that the mismanagement of state finances is even worse than they thought.

And what were those warnings?

1. That letter from the Civic Committee of The Commercial Club of Chicago, one of Illinois’ leading business groups, to its members and Illinois Governor Pat Quinn that said the state’s pension fund system “can no longer be salvaged.”

2. The state budget director suggesting the possibility of bonds being sold to help pay off billions of dollars of outstanding bills

Following up on that Civic Committee letter, yesterday I wrote that the State of Illinois’ pension funding gap had reached $86 billion. However, an article on the Crain’s Chicago Business website this morning stated:

A report last week by the Chicago-based Civic Federation, a government finance watchdog group, said the unfunded liability for the state’s five public pension funds jumped to $96.8 billion at the end of fiscal 2012 from $83 billion at the end of fiscal 2011.

$96.8 billion. My bad.

But turning to the possibility the State of Illinois may issue bonds to help pay down its bills, the Tribune editorial said:

Quinn’s budget director, Jerry Stermer, told a legislative committee Thursday that Illinois entered this fiscal year with $8 billion in unpaid bills — and will exit this fiscal year with $8 billion in unpaid bills. That’s almost as troubling as Stermer’s implication that the state with the nation’s worst credit rating ought to pay those bills by borrowing more billions:

“The governor’s interested in working with the General Assembly on a structured refinancing of this huge amount of unpaid bills, payables, and we plan to come to the General Assembly with a proposal in the next number of weeks to consider a refinancing of some of that.”

No- that wasn’t the Editor italicizing borrowing more billions.

Governor Quinn’s office later said the governor had no borrowing plan in place right now, but consider the following from the Crain’s piece:

The Nov. 6 general election boosted the ranks of Democrats in the House and Senate, theoretically giving them the three-fifths majority vote required to authorize GO bonds.

A bill introduced by Democratic lawmakers in the House last week would allow for the sale of $4 billion of bonds with proceeds earmarked for bill payments.

Hmmm. The phrase “ready to scramble” comes to mind here.

An unfunded pension liability that’s grown to $96.8 billion? $8 billion in unpaid bills that don’t seem to be going away- even after those big income tax hikes last year? Potentially borrowing money to help pay these bills off? As much as I don’t want to, I need to leave the state before I get stuck with the bill like everyone else who remains.

It’s coming. It’s just a matter of time.

Unless that economic boom Illinois legislators keep waiting for finally materializes.

I’m not holding my breath.

Sources:

“It’s worse than you thought.” Chicago Tribune. 16 Nov. 2012. (http://www.chicagotribune.com/news/opinion/editorials/ct-edit-budget-20121116,0,6206483.story). 16 Nov. 2012.

“Quinn eyes bonds to pay off growing bill pile,” Crain’s Chicago Business. 16 Nov. 2012. (http://www.chicagobusiness.com/article/20121116/NEWS02/121119825/quinn-eyes-bonds-to-pay-off-growing-bill-pile). 16 Nov. 2012.

Share

Tags: , , , , , , , , , ,

No comments yet.

Leave a comment

Survival And Prosperity
Est. 2010, Chicagoland, USA
Christopher E. Hill, Editor

Successor to Boom2Bust.com
"The Most Hated Blog On Wall Street"
(Memorial Day Weekend 2007-2010)

This Project Dedicated to St. Jude
Patron Saint of Desperate Situations



Please Rate this Blog HERE



happyToSurvive
Advertising Disclosure here. "Code Needed"=Promo Code Found On Advertiser Website. Ad Captions Last Updated 12/3/16.
ANY CHARACTER HERE
BullionVault World's Largest Online Investment Gold Service Taking Care Of $2 Billion For More Than 60,000 Users. BullionVault.com Reviewed HERE.
ANY CHARACTER HERE
Buy Gold And Silver Coins 1 Oz. Silver Rounds (Secondary Market), 10 Oz. Silver Bars (Secondary Market), 100 Oz. Silver Bars (Secondary Market), Australian, Canadian, Chinese, French, Mexican Gold Coins On Sale! Free Shipping On U.S. Orders $99 And Up. BGASC Reviewed HERE.
ANY CHARACTER HERE
3-Month Food Supply $397 Limited Time Only; Survival Starter Kit X-Mas Tote $74.95 + Free Shipping; Alexapure Pro Water Filtration System $147; Patriot Seeds Gift Set $69.95; Big Savings On "Deal Of The Day" Page; Free Shipping On Orders Over $79. MyPatriotSupply.com Reviewed HERE.
ANY CHARACTER HERE
bullet proof vestsWorld's First Bulletproof Baseball Cap Only $129; Bulletproof Ceramic Plate (NIJ Level III Stand-Alone) Only $169; Bulletproof Backpack/Messenger Bag Panel Only $99. BulletSafe Reviewed HERE.
ANY CHARACTER HERE
Blade HQ Knives Holiday Sale!; Free Patch Orders Over $49 (Code Needed); Free Shipping All Domestic Orders Over $99. Blade HQ Reviewed HERE.
ANY CHARACTER HERE
Survival Titles Save 20% Discontinued Title Sale- Savings Up To 75% Off Original Price. Paladin Press Reviewed HERE.
 

Categories

Archives

Prepper Website

RSS Chris Hill’s Other Blog: Offshore Safe Deposit Boxes

  • Related Reading: Malca-Amit’s New UltraVault Safe Deposit Box Service Profiled By South China Morning Post
    Malca-Amit, “widely recognized as the world’s leader in diamonds, jewellery and precious metals logistics and storage,” recently launched its UltraVault safe deposit box service in Asia. According to the UltraVault website: Our innovative portable safe deposit box enables you to: -View, withdraw or store your assets any time of the day or night -Select the […]
  • Related Reading: The Economic Times Article On India’s Safe Deposit Boxes
    I’ve had India on my mind recently. In particular, I’ve been thinking about the country’s safe deposit box industry in light of the ongoing “currency experiment.” Vikram Doctor over at The Economic Times (India) has also been speculating as to what the blitzkrieg on cash means for safe deposit boxes, publishing a piece entitled “Crackdown […]
  • Related Reading: SurvivalBlog.com Post About U.S. Bank Safe Deposit Boxes
    Back on February 2 I blogged about James Wesley, Rawles (comma not a typo), an author, lecturer, and founder/Senior Editor of SurvivalBlog.com, a preparedness blog that receives more than 320,000 unique visits per week. The former U.S. Army intelligence officer had just advised SurvivalBlog readers to “get a safe deposit box offshore, and store some […]
  • Happy Thanksgiving
    Just wanted to wish the American readers of Offshore Safe Deposit Boxes a Happy Thanksgiving. Thank you for your continued readership and support (that applies to everyone!). Christopher E. Hill Editor
  • U.S. Bullion Dealer Miles Franklin Launches Private Safe Deposit Box Program In Canada
    While pulling material together for the blog this morning, I learned about a new “offshore” safe deposit box program that’s just been launched by a well-known American precious metals dealer. Andrew Hoffman, Marketing Director for Miles Franklin (“one of America’s oldest, most trusted bullion dealers”) wrote on SilverSeek.com on November 2: We’ve spent more than […]