The Land Of Lincoln May Soon Receive A Most Dubious Honor

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The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Riddick » 06-28-2017 01:26 AM

North America's Venezuela:
"Welcome To The Banana Republic Of Illinois"

On Track To Be First State With 'Junk' Credit Rating -

“We’re in a death spiral
—Illinois has the worst pension crisis in the nation and needs the boldest reforms,” Ted Dabrowski, Illinois Policy Institute’s vice president of policy, told Fox News. “There is no doubt that junk bond rating is on its way.”

S&P Global Ratings has warned the agency will likely lower Illinois' credit rating to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year. Lawmakers are now in a special session in an effort to break the budget impasse, prodded by Republican Gov. Bruce Rauner, who has referred to his state as a “banana republic.”

The state currently faces $130 billion in unfunded pension obligations and a backlog of unpaid bills worth $15 billion. A downgrade to “junk” status would increase the cost of borrowing for critical infrastructure, or refinancing existing debt.

Even as some lawmakers see hope for a deal, if the budget fails, Illinois will—literally—lose the lottery.

Dabrowski said passing a budget would “stave off” the junk rating, but the pension crisis in the state could only be remedied by “bold reforms,” such as a transition from pensions to 401(k) plans. He said the state risks becoming the “financial deadbeat of the nation.”

FULL STORY

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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Doka » 06-28-2017 09:51 AM

I have no idea what people expect after decades of Democrat rule. What a shame and sham. Chicago, with it's multicultural "Wild West Show" , And wealthy,greed ridden "untouchable" politicians". Do the People there really think they "they feel the love" or is just indigestion? But, alas it is not the only State in deep "Do-Do". Oregon and it's current ruling aristocracy (almost 40 years) are almost in the same fix!

I can only dream of what it would be like, if the time spent blaming and sucking the life out of states, countries and the people, would be spent "fixing the ills", but people do love their Dictators , it appears to be the Human Way. That , I must always remember "where I Am" while Earth Bound.
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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Riddick » 06-30-2017 05:14 PM

For sure fixing the fix they're in isn't gonna be easy or fun. Exercising fiscal responsibility in the first place, rather than having it thrust upon them, now there's a thought - Then again, whoever said thinking was a socialist strong suit eh?

Still, it's not like the state doesn't have options, it's just that they're gonna be stunningly unpopular. On one hand cutting services and such to the bone won't go over well, yet I'll betcha next to Illinois Nazis there's nothing folks in the state hate more than TAX INCREASES

I'll ALSO betcha the state enacts revenue enhancements to the extent needed, before you know it there'll be an exodus of Biblical proportions, those with means and ability leaving Illinois fleeing to states more friendly for folks of means and ability -

OTOH not to say it'd cure all ills, or isn't addictive, or has no potential for serious side-effects but for patients in critical condition there IS a third option: just 'cause states can't print their own money doesn't mean they can't create their own cryptocurrency.

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How Illinois Became America's Most Messed-Up State

Post by Riddick » 07-27-2017 08:46 PM

Politicians are notorious for making promises they can't keep. But they really outdid themselves in Illinois -- and now the state is paying for it. FULL STORY

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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Doka » 07-28-2017 12:52 AM

This is a nasty problem for a lot of states and NOT very well discussed, for sure. I would say there are a lot of people in the states that have not a clue of just how insolvent their states really are and what their taxes are going for. Mostly for "promises in the dark" for a select group of state employees.

This ranking of the 50 states, reproduced from page 29 of the study, is based on their fiscal solvency in five separate categories:

Cash solvency.  Does a state have enough cash on hand to cover its short-term bills?Budget solvency. Can a state cover its fiscal year spending with current revenues, or does it have a budget shortfall?Long-run solvency. Can a state meet its long-term spending commitments? Will there be enough money to cushion it from economic shocks or other long-term fiscal risks?Service-level solvency. How much “fiscal slack” does a state have to increase spending if citizens demand more services?Trust fund solvency. How large are each state’s unfunded pension and healthcare liabilities?

https://www.mercatus.org/statefiscalrankings




'Oregon’s trust fund solvency is among the weakest in the country. Unfunded pension obligations, on a guaranteed-to-be-paid basis, are $97.6 billion, or 56 percent of state personal income."

For Oregon, 21st on the list, not good!
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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Doka » 07-28-2017 01:24 AM

This is what 40 years of Democrat Rule, will get you. Politics aside, a 40 year diet of the same thing, really gets old.


Gov. Kate Brown Might Sell Four State Agencies to Private Bidders to Keep Oregon Afloat.The agencies oversee everything from liquor and cannabis sales to keno machines and Portland’s light-rail system.


By Nigel Jaquiss |

Published May 17 , 2017

 Updated May 18



Late last month, Gov. Kate Brown announced a bold initiative: She plans to sell $5 billion worth of public assets to pay down part of Oregon's $22 billion pension deficit.
Without providing specifics, Brown said just about anything except state forests, parks and prisons could be had for the right price.

According to sources familiar with the governor's thinking and recent efforts in other states, that could include not only property but as many as four state agencies—overseeing everything from liquor and cannabis sales to keno machines and Portland's light-rail system.

It's too early to know how much buyers might pay for Oregon agencies, but based on asset values bandied about elsewhere, it's clear Brown would have to sell such crown jewels to approach $5 billion.

The governor's willingness to entertain such ideas is a departure from Democrats' historical preference for focusing on new tax revenue.

A review of the experiences of other states, however, shows Brown's attempt will be challenging.

Allen Alley, a former Republican candidate for governor and treasurer who has spent extensive time studying the state's pension liabilities, says Brown's plan won't stop the bleeding, because Oregon governments still guarantee pensioners' future payouts rather than offering a 401k-type plan that shifts risks to workers.
"It's political kabuki theater," Alley says of the proposed asset sales. "She's rearranging the deck chairs on the Titanic."


Entire Article Here
http://www.wweek.com/news/state/2017/05 ... on-afloat/
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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Doka » 07-30-2017 11:30 AM

The people of Illinois must be so proud of their state! What!!? :shock:


Illinois Had The Worst Personal Income Growth In The U.S. Over The Past Decade

by Tyler Durden

Jul 29, 2017 9:34 PM

Submitted by Austin Berg, of IllinoisPolicy.org

Illinois’ jobs growth was worse than every neighboring state, and half the neighboring state average from June 2016 to June 2017, according to a new report. Data released July 27 by the Illinois Department of Employment Security, or IDES, reveals Illinois’ jobs growth from June 2016 to June 2017 was 0.9 percent, compared with a national average of 1.5 percent.

http://www.zerohedge.com/news/2017-07-2 ... ast-decade
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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Malaria_Kidd II » 07-31-2017 02:01 AM

:oops: The financial state of Illinois is sad, so sad. And this outcome was predicted by our first president. President George Washington warned us about printing "paper money" eliminating the ability to be always backed by heavy coinage! Although packing bags around with 5 + pounds of coins was obviously very impractical. It was originally a great idea from the Father of this country! :D

I'm a decendent of John Endicott, as the 1st Governor of the Massachusetts Bay Colony and illegally against the British Crown in the 1630's, he ordered striking the first coinage from copper found on his land. He started something each new state should have continued.

Every state should have been able to make their own money to be good for barter in all states! It's way too late but it's simple just like today with the US Government, they'd never run out of money! :lol: :idea:


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Last edited by Malaria_Kidd II on 08-23-2017 01:10 PM, edited 1 time in total.
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Illinois' Unpaid Bill Backlog Hits A Record $16 Billion

Post by Riddick » 09-20-2017 02:07 PM

Illinois’ pile of unpaid bills topped $16 billion for the first time as the state deals with the fallout of an unprecedented two straight fiscal years without complete budgets, the state comptroller’s office reported on Tuesday.

The bill backlog is growing despite the enactment of a fiscal 2018 spending plan and income tax increase in July that ended a budget impasse between Illinois’ Republican governor and Democrats who control the legislature.

“What is going to take this backlog down is the borrowing,” said Abdon Pallasch, spokesman for Democratic state Comptroller Susana Mendoza.

A provision in the budget enacted by lawmakers over the vetoes of Governor Bruce Rauner authorized the sale of up to $6 billion of general obligation bonds to pay bills from vendors and service providers that are accruing late payment penalties of as much as 12 percent.

Rauner signaled earlier this month that his administration will move forward with the bond sale, saying ”it’s better to have Wall Street carry our debt than Main Street Illinois.”

But on Monday, the governor told reporters that the bonds do not solve any problem because lawmakers failed to set aside money to make principal and interest payments over the 12 years the debt would be outstanding.

“We need to come up with roughly half a billion (dollars) of cuts just to be able to service a bond offering,” he said, adding that he planned to meet with legislative leaders for discussion.

Pallasch said school aid and pension payments this week will lower the bill backlog into the $15 billion range as the Dec. 31 deadline for issuing the bonds looms.

“The ball’s in their court now and we are working with them to make this happen,” he said.

Illinois, which has the lowest credit ratings among the 50 states, evaded downgrades to junk with the budget enactment. Yields on its debt in the U.S. municipal bond market also fell due to the action. The state’s so-called credit spread over Municipal Market Data’s benchmark triple-A yield scale for 10-year bonds has dropped to 175 basis points from a 335 basis-point high in June.

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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Malaria_Kidd II » 09-21-2017 06:38 AM

Hey Riddick, maybe 49 states should chip in to pay their bills in arrears!

:idea: With Illinoise having the lowest credit rating of all states. That fact would have me wondering to myself, driving the big rig during any snow storm, if there was really salt on any state or interstate highway :!:

I'd make a bet, with decent odds of winning, that China would buy Illinois. :oops:

There's only one all too easy way out of this nation's/state's debt. You all know the answer but count on me not to print the answer publicly. :wink:


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Illinois Doesn't Know How Many Bills Are Unpaid

Post by Riddick » 10-26-2017 12:41 AM

How big is Illinois’s pile of unpaid bills? Even the state’s chief fiscal officer doesn’t know for sure.

The state sold $4.5 billion of bonds on Wednesday to help pay down the estimated $16.6 billion it owes to contractors, health care providers and others who waited to get paid during Illinois’s record-long fight over the budget. But Comptroller Susana Mendoza, a Democrat, says her office doesn’t know the size of that backlog for sure, and she wants that to change.

To get a better picture of how deeply Illinois is in debt, Mendoza is urging lawmakers to override Republican Governor Bruce Rauner’s veto of a measure that will require state agencies to report bills on a monthly basis and include how old the bills are, whether funds have been appropriated to pay those bills and how much interest is owed. The Illinois House of Representatives voted to override the veto on Wednesday. The Senate must do the same for the bill to become law.

In his veto message on Aug. 18, Rauner applauded the push for transparency but criticized Mendoza for trying to “micromanage” agencies, adding that they don’t have the technology to meet the requirements in the bill.

Mendoza disagrees, saying that agencies are equipped to put those numbers together. The bill would help Mendoza keep track of how much interest the state is paying: She estimates that Illinois is already on the hook for $900 million in late-payment penalties.

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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Riddick » 10-29-2017 10:06 PM

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Re: The Land Of Lincoln May Soon Receive A Most Dubious Honor

Post by Malaria_Kidd II » 10-30-2017 08:31 AM

Hello Riddick

I read that in the newspaper! What a weird conundrum that money mix up is today about all their yesterdays. :oops:

The second I in their welcome sign contains President Lincoln's facial profile! 8)

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