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Bankrupt - What to do with a broken Illinois?

Old 06-22-17, 08:04 AM
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Bankrupt - What to do with a broken Illinois?

A column at Chicago Tribune is suggesting to just dissolve the Land of Lincoln and let neighboring states Indiana, Wisconsin, Iowa, Missouri and Kentucky take the parts that it wants.

Illinois is like Venezuela now, a fiscally broken state that has lost its will to live, although for the moment, we still have enough toilet paper.

But before we run out of the essentials, let's finally admit that after decade upon decade of taxing and spending and borrowing, Illinois has finally run out of other people's money.

Those "other people" include taxpayers who've abandoned the state. And now Illinois faces doomsday.





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Old 06-22-17, 08:09 AM
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Re: Bankrupt - What to do with a broken Illinois?

Maybe they could try what Kansas has done, their economy seems to be going great guns since Brownback became governor.

Last edited by wendersfan; 06-22-17 at 08:29 AM.
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Old 06-22-17, 08:18 AM
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Re: Bankrupt - What to do with a broken Illinois?

done. Their

Maybe they could be annexed by CA since they have a surplus and a booming economy.

Radical gerrymandering, but selective annexation works for local governments!

Illinois residents could just be called "Dreamers" and CA could become a sanctuary state.
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Old 06-22-17, 09:07 AM
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Re: Bankrupt - What to do with a broken Illinois?

Is this like how CA is bankrupt? Or is there really a story here? The CA claim was a partisan jab that a lot of stupid people fell for and continue to fall for.
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Old 06-22-17, 09:25 AM
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Re: Bankrupt - What to do with a broken Illinois?

No Illinois is really bankrupt. The state legislature gerrymandered a super majority and has been padding the benefits of the state employees union. It's somehow in the state constitution that pension benefits cannot be reduced, so we are on the hook for the $120B or so in pension debt.

The previous democratic Governor Pat Quinn brokered a deal in 2010 with the state unions just before election day to not have any layoffs for 2 years. Timing was coincidental they said. But it definitely tied up the budget during the recession.
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Old 06-22-17, 09:34 AM
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Re: Bankrupt - What to do with a broken Illinois?

Ah, the pension debt. USPS encounters the same problem. There's something where they need to prepay crazy amounts into pension funds. And they're not allowed to 'float' the money. Supposedly this was the end of the USPS, and they'd be dissolved ... in 2010. But they keep going.
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Old 06-22-17, 09:47 AM
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Re: Bankrupt - What to do with a broken Illinois?

okay, yeah, the pension debt is currently at $27,000 per household and no signs of slowing down.

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Old 06-22-17, 09:50 AM
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Re: Bankrupt - What to do with a broken Illinois?

There's no problem so big that it can't be solved by gerrymandering voters!
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Old 06-22-17, 09:54 AM
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Re: Bankrupt - What to do with a broken Illinois?

serious question: How would this affect first time home buyers in illinois? Better to rent?
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Old 06-22-17, 09:55 AM
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Re: Bankrupt - What to do with a broken Illinois?

They want to give Wisconsin Chicago and Rockford. No thanks.
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Old 06-22-17, 09:59 AM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by movielib View Post
They want to give Wisconsin Chicago and Rockford. No thanks.
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Old 06-22-17, 10:03 AM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by Save Ferris View Post
serious question: How would this affect first time home buyers in illinois? Better to rent?
I doubt much. The federal government isn't going to let IL go bankrupt. This will end up being funded, or a special arrangement will be made.
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Old 06-22-17, 10:04 AM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by PerryD View Post
No Illinois is really bankrupt. The state legislature gerrymandered a super majority and has been padding the benefits of the state employees union. It's somehow in the state constitution that pension benefits cannot be reduced, so we are on the hook for the $120B or so in pension debt.

The previous democratic Governor Pat Quinn brokered a deal in 2010 with the state unions just before election day to not have any layoffs for 2 years. Timing was coincidental they said. But it definitely tied up the budget during the recession.
Also...
A mix of state law, court orders and pressure from credit rating agencies requires some items be paid first. Those include debt and pension payments, state worker paychecks and some school funding.

Mendoza says a recent court order regarding money owed for Medicaid bills means mandated payments will eat up 100 percent of Illinois’ monthly revenue.

There would be no money left for so-called “discretionary” spending — a category that in Illinois includes school buses, domestic violence shelters and some ambulance services.
https://www.washingtonpost.com/busin...=.fbc4ae5da886

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Old 06-22-17, 10:10 AM
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Re: Bankrupt - What to do with a broken Illinois?

I get it now - this is another movement to gut the civil service.
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Old 06-22-17, 10:22 AM
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Re: Bankrupt - What to do with a broken Illinois?

To be fair, the budget issues started with a republican governor, George Ryan. He came in when the U.S. economy was on fire in the late 90s, and to get his spending priorities passed with the democratic legislature, he literally gave every congressmen something like $25M each in free money to spend as they chose, billions of dollars that at the time seemed like surplus money (remember those days). Once the money was spent/wasted, the economy cratered in 2001/2002 and all of a sudden we didn't have money to pay the bills.
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Old 06-22-17, 02:59 PM
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Re: Bankrupt - What to do with a broken Illinois?

The pension is underfunded because the legislature and governors of both parties did not make the required pension payments, instead using the money to fund the other issues du jour.

Rauner came in following the Republican Governor playbook and with the stated goal of busting the union, and he has been unwilling to back off that since he took office. He also has not submitted a balanced budget which is his constitutional responsibility.

There are no heroes in Illinois.
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Old 06-22-17, 03:16 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by Troy Stiffler View Post
I doubt much. The federal government isn't going to let IL go bankrupt. This will end up being funded, or a special arrangement will be made.
The Illini are too big to fail!

(Or is that the Illuminati?)

Are austerity measures next? (Seriously)
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Old 06-22-17, 03:17 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by mwbmis View Post
There are no heroes in Illinois.


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Old 06-22-17, 03:23 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by Troy Stiffler View Post
Is this like how CA is bankrupt? Or is there really a story here? The CA claim was a partisan jab that a lot of stupid people fell for and continue to fall for.
You saying California is a robust state and people are just giddy about living there?

Not according to this article:

http://money.cnn.com/2016/11/04/pf/p...nia/index.html

For every home buyer coming into the state, there are three Californians selling and moving elsewhere, according to data analysis firm CoreLogic.

"There is clearly a relationship between the migration patterns and home prices," said Sam Khater, deputy chief economist at CoreLogic. "The middle and lower middle can no longer afford to live in California."

:

"All the gains aren't coming in support of the rest of the economy, they're coming at the expense of the rest of the economy," said Christopher Thornberg, founding partner of Beacon Economics. "Folks in the tech industry make craploads of money and they can afford to live there and will force out other people."
So, for everyone one person buying a home in California...who is probably wealthy, nice tech job, etc...there are 3 people who are getting the hell out of there (i.e., the average American trying to pay bills, has an average job, etc.).

Why is that. That's not an indication of a healthy state.
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Old 06-22-17, 03:30 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by DVD Polizei View Post
You saying California is a robust state and people are just giddy about living there?

Not according to this article:

http://money.cnn.com/2016/11/04/pf/p...nia/index.html



So, for everyone one person buying a home in California...who is probably wealthy, nice tech job, etc...there are 3 people who are getting the hell out of there (i.e., the average American trying to pay bills, has an average job, etc.).

Why is that. That's not an indication of a healthy state.
Tell me why you think soaring housing prices are the result of a state bankruptcy.
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Old 06-22-17, 04:17 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by mwbmis View Post
The pension is underfunded because the legislature and governors of both parties did not make the required pension payments, instead using the money to fund the other issues du jour.

Rauner came in following the Republican Governor playbook and with the stated goal of busting the union, and he has been unwilling to back off that since he took office. He also has not submitted a balanced budget which is his constitutional responsibility.

There are no heroes in Illinois.
This is very true. Quinn (the former Democratic Governor) at least had a plan that would have spread the pain around. Madigan (the Democratic House Speaker) killed it, and Rauner (the current Republican Governor) is not interested in any solution that doesn't pile the pain on state employees. Quinn, though imperfect, might have been a hero. Everyone else in state government going back 20 years is not.

(Actually, our Secretary of State is a decent fellow who, in his private life, runs a gymnastics program for underprivileged kids).
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Old 06-22-17, 04:22 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by emanon View Post
No offense but the only thing Rockford is "good" for is being the place Democatic state senators flee to when they want to stop Republicans from passing a bill to prevent us from becoming like Illinois.

Last edited by movielib; 06-23-17 at 10:21 AM.
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Old 06-22-17, 04:32 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by JasonF View Post
This is very true. Quinn (the former Democratic Governor) at least had a plan that would have spread the pain around. Madigan (the Democratic House Speaker) killed it, and Rauner (the current Republican Governor) is not interested in any solution that doesn't pile the pain on state employees. Quinn, though imperfect, might have been a hero. Everyone else in state government going back 20 years is not.

(Actually, our Secretary of State is a decent fellow who, in his private life, runs a gymnastics program for underprivileged kids).
Stop talking like you still live in Illinois. It's confusing me.
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Old 06-22-17, 04:35 PM
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Re: Bankrupt - What to do with a broken Illinois?

The problem is Mike Madigan. He refuses to work with ANY governor, Republican or Democrat.
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Old 06-22-17, 04:54 PM
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Re: Bankrupt - What to do with a broken Illinois?

Originally Posted by Double_Oh_7 View Post
The problem is Mike Madigan. He refuses to work with ANY governor, Republican or Democrat.
I've been hearing about him forever. We've got someone who's been in the state legislature even longer, Fred Risser who's been in office for 60 years, the longest serving state legislator in US history. He's 90 years old. Sorry to say he's my state senator. But he's never had Madigan's power.
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