Borrow $15 Billion?
- As the state's stack of unpaid bills grows, Gov. Pat Quinn is floating the idea of borrowing roughly $15 billion to alleviate the pressure, though taxpayers would be saddled with loan payments for years.
The governor has approached several lawmakers with a plan he's dubbed a "debt bond." While the name is somewhat redundant, the thinking is the state can pay back what it owes and plug its big budget hole — if only for a year.
Supporters say the outsize loan would provide instant cash to schools, doctors and social welfare agencies that have laid off workers and cut services as they await long-overdue payments.
A slow moving train wreck.
Labels: state politics
posted by SCC at 12:01 AM
69 Comments:
Pity is we can't recall this mope until June. Happy now Cohen, Green Party and Libertarian voters?
Sweet Mother of Mercy!!
How about kicking all the dead weight off the state government tit?
This will only result in tax payers being chased down and eaten alive on the streets!
The LINK card holders have nothing to fear.
Buy guns...
Buy Ammo...
Seek out those of like mind... Mutual aid will be key.
Fortify but be prepared to leave the tax absorbers to fend for themselves but be mindful... They WILL be angry when what's left of the middle class says "fuck all of you dogs, YOYO!"
Look for safe haven outside of Illinois...
Time is fast approaching when "foldin' money" will be far more useful as tinder and to wipe your ass with...
It's probably to alleviate any negitivity regarding governor's and/or political pensions.
A-Holes.
This is not the time to be layering up debt. It's the time to be getting rid of debt. Paying debt down. Getting our bond rating back up so when we do borrow, it's at a decent rate. Right now, we're borrowing at the municipal equivalent of sub prime.
This means cutting wasteful spending, increasing revenue and actually applying that revenue to the areas where it's needed (like, funding pensions). Not blowing it on pet projects, etc. Maybe someday, we can return to what we once knew, but we can't keep pretending that things are the same. Stacking up more debt is 'more of the same' in a time when we can't afford to be doing this.
Slow moving trainwreck indeed. We are so, so, SO fucked. Make sure your kids don't live here when they're adult.
The city and state are hung up in this borrow and spend ritual death spiral like a laid off employee living off a credit card with the impression that the crisis is only temporary.
They are both in denial. It's gonna get real ugly soon.
...and pensions??
OT
Heard rumor that Earnie Brown wants a list of bottom 2 seniority people from each watch from my slow northside dist.
Quinn has to take a leadership stance and say "CUT THE SPENDING".
Anything short of that and he is kidding himself AND the people of Illinois.
The state is hemorrhaging and now is not the time to just ask for more plasma. Now is the time to plug up the holes.
He should cut spending by 10% and everyone should take a 10% pay
cut. Welcome to the real world.
Quinn still hasn't signed the Pension Bill passed by Il legislators 03 Dec...
Anonymous Anonymous said...
Pity is we can't recall this mope until June. Happy now Cohen, Green Party and Libertarian voters?
12/28/2010 12:06:00 AM
I voted my conscience and I am happy with my decision. I refuse to follow the fallacious reasoning of "you shouldn't waste your vote". Voting is not like horse betting. When are people going to get it? Democrat or Republican doesn't matter. Even if Ryan won, he would do the same thing. If anyone believes that one party is superior to the other, they are fooling themselves. I used to live in a red state with the majority of elected officials as Republicans. In my home state it was more of the same (scandals, back room deals, certain special interest groups benefiting from public dollars, etc.). Sounds familiar?
And the State of Illinois grant money is supposed to be where the city gets our pension money from in the event the city doesn't contribute? There isn't going to be any. And remember, they are going to "address" pension issues in legislation again in January and Quinn has yet to even sign the pension legislation. Are there enough of us awake YET? This last year the propaganda campaign went into full gear, badmouthing the "spoiled" recipients of pension funds on a national level. Trotting out the stories about the clouted minority few who receiving massive pensions but painting us all with that brush. "Those greedy coppers." Prepping the sheep to allow us to get screwed over after all we've given and handing them their conscience-salving excuse so they can live with themselves as they destroy our families' futures. The media and even so-called "conservative" outposts are spewing the same talking points, acting as if they are searching for a "fair" solution when really they just smell the rotting carrion that is our pension fund and, like the fucking jackals they are, seeking to devour it. They can make all the justifications they want but we know that the true thought process of the morally bankrupt is simple: "I WANT THAT, HOW DO IT TAKE IT." And they have the power to take it if we don't rise up. I give a shit that we can't go on strike. Why can't we? Because we have an agreement in writing? Like our pension obligation agreement, right? Soon it will be time to do whatever it takes. This issue is not something we should be reduced to begging for or compromising. Don't get bogged down in the horseshit semantics they are using to set the narrative. Keep it simple and be insistent. We are not trying to win hearts and minds here. That battle is lost. It is time to get ugly or you will be eating dog food and being cared for by some police-hating, state provided "caretaker" in your old age. Forced enemas twice daily just so they can laugh at the once upon a time big bad PoPo that locked up their play cousin and no bed cleanup when you splatter the already two week-old sheets. As we do when dealing with the street jagoff that thinks it's a negotiation when given a lawful order we all need to be of the mindset, "We're not fucking asking, we're telling."
Demand a "THEM TOO" clause.
Any change to our pension (current members)also applies to all elected and appointed officials in the executive, legislative and judicial branches. After all, the talking points are all about how we all need to sacrifice at times like this, right?
For MANY years the mayor has known of the pension underfunding and the mathematical certainty of insolvency if something didn't change. He did nothing and he cannot claim to be surprised. The Civic Federation provided him report after report explaining this. The powerpoint presentation given to the city on how to "deal with" a bankrupt pension fund has long been scoured from the internet. That's right, 5 years ago these Fucks were meeting to discuss how to get away with it and mitigate damage to their bond rating- not how to fix it.
That's like opening up another credit card to pay the minimum balance on a handful of other maxed-out cards.
Irresponsible. How is this legal? Where is the accountability?
Typical Democratic response. Break out the credit card to pay a debt.
If Illinois cannot afford non-essential services, then you have to eliminate them.
The Box Chevy Phantom's suggestion about looking for safe haven outside Illinois is spot on. Every quote from the democrats who control the general assembly involves raising taxes. They will raise income taxes, gas taxes and real estate taxes as well as so called sin taxes on cigarettes and liquor. The dems never speak of cutting spending or reducing entitlements. Their sole response to the deficit is to make the productive, working people of the state pay more and more for the slugs who vote to keep the dems in office. Illinois is being taxed out of existence. Productive people will leave the state further reducing the tax base prompting the dems to raise the tax burden on the remaining residents. Last one out, please turn out the lights.
I listened to talk radio this morning on WLS the topic of Govt Pensions came up. The overall opinion of the public callers was "they have been living high off the hog so they should take a cut", we don't get 70-80% of our salaries why should they. It did not focus on Police pensions but after hearing this I believe that they will have no problem passing legislation cutting our pensions and the fill in host who ran for Govenor stated that it must include those currently working. We are in trouble folks.
The Box Chevy Phantom said...
.. being chased down and eaten alive on the streets!
Buy guns...
Buy Ammo...
Seek out those of like mind... Mutual aid will be key.
Fortify but be prepared to leave ...
Look for safe haven...
12/28/2010 12:19:00 AM
Sounds like you've read The Zombie Survival Guide
Once again, the schools need $$$.
Lottery, casinos, taxes aren't enough to fund the inner city. Plus no factory jobs for all the CPS graduates.
No mention of pension funding.
How does an already busted system borrow money it already can't pay back? Who needs to get paid, Ryans, Blagos, & Celini's legal defense fund?
Oh Messiah hussein Obaminous, where arth thou?
Democrats rebuilding Illinois - 40 oz. at a time.
No Mr Quinn! It's time to cut these bloated social-program budgets that give nothing back to the actual tax payers.
How about all these bottom feeders who get subsidized child care in IL.
Go into any Jewel Store in the City of Chicago. Watch the lines of people with shopping carts overflowing with can goods, bottled water, etc etc etc. Watch how many are paying with Link Cards, or other Forms of Welfare Coupons. Many are dressed in Mid Eastern Garb. Rumor is many Mid Eastern Immigrants have learned how to "Game The System". Why is not our Illinois Attorney Generals Office Looking into these questionable transactions? Where is Our Cook County States Attorney ? What's Going On ? How come they are all living in Nice Houses, Driving Nice Vehicles, Many Own A Business or Two. How do they qualify for welfare handouts.
Pam Zekman Where Are You ???
I thought that the pension problem is nationwide and not the politdicians fault? Appears not so.
"...With the glaring exceptions of New York, Chicago and Baltimore almost ALL the Police & Fire plans (even Los Angeles and Miami) have funded ratios around 100%."
Here's some major cities who's pension funds haven't been destroyed by their City Fathers. So what's Chicago's excuse for such mismanagement?
New York Police 68.02%
Miami General Employees 69.37%
Los Angeles Employees 69.86%
Austin Employees 70.30%
Fort Worth 72.52%
Cincinnati 73.79%
Jacksonville 76.97%
Chicago Laborers' 79.20%
Fresno Employees 80.53%
Seattle 81.45%
San Diego 82.74%
Denver Employee 82.75%
San Jose Employees 82.84%
Detroit General 84.51%
Los Angeles Water and Power 87.31%
Dallas Employees 90.23%
Houston Police 96.88%
San Francisco Employees 97.00%
Miami Fire & Police 98.65%
San Antonio Fire & Police 100.17%
Detroit Police & Fire 102.70%
Dallas Police & Fire 103.11%
Milwaukee Employees 103.29%
El Paso Firemen's 106.23%
Los Angeles Fire and Police 107.30%
Houston Fire 107.75%
San Jose Police & Fire 111.90%
El Paso Policemen's 113.18%
Fresno Fire & Police 114.97%
Washington D.C. 287.68%
He is borrowing money but yet nothing said about pensions! Watched fox news Chicago last night,long segment about death penalty from mike flannery but nothing mentioned about "OUR" well deserved pensions wonder why? Did shortshanks get to quinn mr.potato head?
“If one comes to slay you, arise and slay him first. And this man (the thief) indeed came to kill you, for behold, he knows that one will not stand there and quietly watch his possessions being stolen.
Old school biblical didn't take shit from anyone.
How about borrow to keep our pensions funded? No way he must appease the Animal to get votes. Any Police Officer or Firemen that votes democratic should be hanged. I believe something like that was said when Harold ran but I like my take on it better, and it is true.
Every voter who enabled this jackass should be liable for that 15 billion.
Can E. Brown take desk relief girl from 013th desk (3rd watch), the way she treats citizens coming in for reports... SUCKS! I get embarrass being around the desk when these poor souls come in at their most vulnerable time. If you're gonna work the desk at least have some personality. My advise, if you're off duty, or if your friend or family member needs to file a report, DO NOT GO TO 013TH FOR A REPORT
ALL DEMOCRATS ARE COMMUNISTS SAYS:
Wow, this Quinn really IS just as smart as his voters are...
How about prisoners paying for room and board, bring back the chain gangs to Illinois.
What do we get for 15 billion?
Free educations for "honor students" at Fenger, Marshall and Crain
Doctors? "honor students" being shot and going into surgery, billed to the State of IL
Social welfare? LINK charged as a MISC FOOD expense at the local liquor store for a pint of booze
GREAT!!
the end of prohibition was what brought us out of the depression--- legalize marijuana and it will bring us out of this depression--- think about all the revenue that can be generated by the government controlled sale of cannabis--- is marijuana any more dangerous than alcohol--- it may sound a little crazy but desperate times call for desperate measures....
If you owe money on a charge card, and were paying 2% a month- but could get a different loan at a lower interest rate- wouldn't you take out the loan so you pay less overall in interest? The money is already owed- reducing the cost of interest cuts your cost overall. This money that is already owed-cutting anything in the budget doesn't effect that it's still owed!
Quinn has not signed the pension reform bill as of yet. I am sure he is getting great pressure from the Mayor not to do so. Illinios State Representative Kevin McCarthy, the sponsor of the pension reform bill on Quinn's desk has stated that he is preparing a bill that will effect current working police and fire throughout the state and will introduce a bill soon. Cullerton has made similar comments. It is coming.
15 billion? Are you f*ckin kidding me? Stop the borrowing now...cut the fat, includes the bloated welfare system and bloated "clout" state employmnet...how many board members do we really need? how many middle-management and executives do we really need? stop all the nonsense.
Can anyone tell me what is the best state to retire in? I know IL is the worst and I feel sorry for all the young folks who are putting roots down in this horrific city, county and state. We are just open wallets for all the waste, kickbacks, graft and welfare suckers.
I wonder how much the state would save if it stopped supporting the lazy, capable, CHA, SSI, LINK leaches....or how about this. If you are on any of the above, if your car payment and the value of the box in your trunk exceedes what you pay in rent the you are kicked out of the program. Or if you piss hot, or if you are arrested more than twice a year....anyone????? *****crickets*****
Borrowing money to pay debt because the money you borrow is cheaper than the money you owe. Let's see, that is similar to deciding on which credit card to use to buy groceries and pay the rent.
What do you do next month?
With Illinois credit rating in the shitter those bonds will be relegated to junk bond status. I hope Quinn is prepared for the 8% - 10% interest rate the purchasers will demand just to get any money from the damn things.
And any bond underwriter will want to know how are they going to be paid back? Where is the money coming from?
That 1% or 2% income tax hike Quinn is talking about is in reality a 33.33% - 66.66% tax hike.
Going from 3% Illinois Income Tax rate to 5% is a 66.66% hike, not 2%. Quinn is using cheap tricks hoping people can't add.
And they will probably use the same smokescreen they used the last time the income tax was raised. They called it "temporary" and only in effect for two years and then they "will see" if the money is still needed and decide then if it is "permanent."
Make no mistake, it IS permanent. Never has Illinois rescinded an income tax hike. They would love to hike it 100% all the way to a 6% rate but they don't want to be skinned alive just yet.
"12/28/2010 04:30:00 PM"
66.6%?
666?
coincidence?
"...it may sound a little crazy but desperate times call for desperate measures....
12/28/2010 01:00:00 PM"
cool, man, cool.
"Sounds like you've read The Zombie Survival Guide
12/28/2010 09:34:00 AM"
sounds like you've never worked the streets of the west and south sides.
Quinn has not signed the pension reform bill as of yet. I am sure he is getting great pressure from the Mayor not to do so. Illinios State Representative Kevin McCarthy, the sponsor of the pension reform bill on Quinn's desk has stated that he is preparing a bill that will effect current working police and fire throughout the state and will introduce a bill soon. Cullerton has made similar comments. It is coming.
12/28/2010 01:28:00 PM
I have 25 years now but I am only 49. I pray to God they do not act on this until after next year after I leave. Mass exodus, I don't believe the 55 medical is here to stay so I will cut and run with 26 yrs and age 50 and take my chances before they lower the boom and it is like 25 years and only 50% I will lose 15%.
"12/28/2010 08:00:00 AM"
too bad those voters who vote their conscience are a small minority of all those who vote, an even smaller minority of all those who are registered to vote, and an incredibly smaller minority of all who are qualified, ie., age, citizenship and residency, to vote.
Abe Lincoln had it wrong.
you don't have to fool some of the people all of the time, nor all of the people some of the time, nor all of the people all of the time, you just have to fool the right number of people at just the right time.
that includes fooling people into not bothering to vote, not bothering to register to vote, voting for the media declared 'frontrunner', voting strictly by political party affiliation, primarily democrat or republican, assuming that only a democrat or republican can win, not having the balls to vote for anyone other than a democrat or republican, and assuming that only professional politicians are qualified and capable of holding public office.
professional politicians are the reason our Founding Fathers wrote the 2nd Amendment.
"He should cut spending by 10% and everyone should take a 10% pay
cut. Welcome to the real world.
12/28/2010 03:23:00 AM"
including those on the dole?
"They are both in denial. It's gonna get real ugly soon.
12/28/2010 01:15:00 AM"
what we need is 3-5 days of solid rioting.
all decent citizens will stay in their homes and defend same, by whatever means necessary.
those on the streets are volunteering to be an essential part of the hunting season.
when it's over, bring in the scoops.
Anonymous said...
Can anyone tell me what is the best state to retire in? I know IL is the worst and I feel sorry for all the young folks who are putting roots down in this horrific city, county and state. We are just open wallets for all the waste, kickbacks, graft and welfare suckers.
12/28/2010 01:41:00 PM
States not on the verge of bankruptcy and no governor named Quinn, Blagojevish, Ryan, Walker or Kerner and no income tax: Texas, Washington, Wyoming, Tennessee or New Hampshire.
Those are my picks. No thanks to Nevada, Alaska, Florida, South Dakota.
My advice: tape a picture of Daley on your car. Drive until someone asks "who is that?" Move there.
Anonymous said...
"...My advise, if you're off duty, or if your friend or family member needs to file a report, DO NOT GO TO 013TH FOR A REPORT."
12/28/2010 11:51:00 AM
Nice try 013 desk! All the rest of us desk coppers have enough work to do.
Handle your own shit!!!
Washington Post is reporting that Chicago home prices have fallen more than anywhere else with exception of Detroit...They are also reporting that Chicago had the most police killed along with California Highway Patrol in 2010.
My prayers to all of you having to endure that in Chicago-glad I left.
An interesting column about pensions.
http://www.chicagotribune.com/news/opinion/ct-oped-1228-mccarron-20101228,0,351806.story
Anonymous said...
Anonymous Anonymous said...
Pity is we can't recall this mope until June. Happy now Cohen, Green Party and Libertarian voters?
12/28/2010 12:06:00 AM
I voted my conscience and I am happy with my decision. I refuse to follow the fallacious reasoning of "you shouldn't waste your vote". Voting is not like horse betting. When are people going to get it? Democrat or Republican doesn't matter. Even if Ryan won, he would do the same thing. If anyone believes that one party is superior to the other, they are fooling themselves. I used to live in a red state with the majority of elected officials as Republicans. In my home state it was more of the same (scandals, back room deals, certain special interest groups benefiting from public dollars, etc.). Sounds familiar?
12/28/2010 08:00:00 AM
Yeah, well the majority of "red states" do not have a budget issue and are in the black. Republican controll tends to make a strong government.
Can anyone tell me what is the best state to retire in?
Maybe Alabama - Tennessee??
---clip--
Area home-price slump worst among 20 areas
Chicago housing prices took the biggest year-over-year drop among 20 metro areas surveyed in the S&P/Case-Shiller Index, with single-family home prices down 6.5 percent in October from year-ago levels.
http://beaconnews.suntimes.com/business/3052478-420/prices-percent-housing-october-areas.html
What does it mean?
It means that you challenge the tax assessors office on your real estate tax bill. It means less tax revenue for the city as people do it and more pain for teachers, police, fire as we add body guards and drivers and bonuses for the elite Illinois politicians.
It means that we should watch as more valuable assets are sold off to politically connected families and friends..
Why?
Because we shouldn't let a crisis go to waste. Now is the time to enrich your friends further. Motivation by fear is soooo great.
How about all these bottom feeders who get subsidized child care in IL.
12/28/2010 09:36:00 AM
Anonymous Anonymous said...
Go into any Jewel Store in the City of Chicago. Watch the lines of people with shopping carts overflowing with can goods, bottled water, etc etc etc. Watch how many are paying with Link Cards, or other Forms of Welfare Coupons. Many are dressed in Mid Eastern Garb. Rumor is many Mid Eastern Immigrants have learned how to "Game The System". Why is not our Illinois Attorney Generals Office Looking into these questionable transactions? Where is Our Cook County States Attorney ? What's Going On ? How come they are all living in Nice Houses, Driving Nice Vehicles, Many Own A Business or Two. How do they qualify for welfare handouts.
Pam Zekman Where Are You ???
12/28/2010 10:01:00 AM
The Illinois Democrat's don't care because the lazy free handout crowd is their voting base. All we hear about is the pension, but never how corrupt the entitlement system is. OT...Where did the $300 million come from for the new Wacker Drive construction project? Thought we were broke!
"Rumor is many Mid Eastern Immigrants have learned how to "Game The System". Why is not our Illinois Attorney Generals Office Looking into these questionable transactions? Where is Our Cook County States Attorney ?"
They're afraid of being labeled as racists. They'll never dig into these criminals' activities.
"Quinn has yet to even sign the pension legislation."
Time to write/call/e-mail Quinn and urge him to sign the bill. Have your friends & family do the same.
Office of the Governor
207 State House
Springfield, IL 62706
Phone: 217-782-0244
Office of the Governor
James R. Thompson Center
100 W. Randolph, 16-100
Chicago, IL 60601
Phone: 312-814-2121
e-mail (go to this page):
http://www2.illinois.gov/gov/Pages/ContacttheGovernor.aspx
Wait until the State Income Tax has to be doubled or even tripled to pay all this debt down.
We'd be happy for the day when only 4.5% was on the table.
Of course, just like the Federal Income Tax, only about 50% of the populace will be paying.
Guess Which 50%?
Anonymous Anonymous said...
Can E. Brown take desk relief girl from 013th desk (3rd watch), the way she treats citizens coming in for reports... SUCKS! I get embarrass being around the desk when these poor souls come in at their most vulnerable time. If you're gonna work the desk at least have some personality. My advise, if you're off duty, or if your friend or family member needs to file a report, DO NOT GO TO 013TH FOR A REPORT
12/28/2010 11:51:00 AM
--------
They have so many people squeezed behind that little desk that do nothing. They have no lockup so no futures to do, no bonds to write (other than for traffic violators) and they still blow off as many reports as they can from the walk-ins. The best is when they tell them they can only file a report in the district of occurrence and send them all over the City.
Heard rumor that Earnie Brown wants a list of bottom 2 seniority people from each watch from my slow northside dist.
12/28/2010 01:29:00 AM
He's also making a list of the people assigned to 045 and only detailed to their units.
Anonymous said...
"Quinn has yet to even sign the pension legislation."
Time to write/call/e-mail Quinn and urge him to sign the bill. Have your friends & family do the same.
Office of the Governor
207 State House
Springfield, IL 62706
Phone: 217-782-0244
Office of the Governor
James R. Thompson Center
100 W. Randolph, 16-100
Chicago, IL 60601
Phone: 312-814-2121
12/28/2010 11:45:00 PM
If not signed the bill goes into law automatically 60 days after passing. It passed with a veto proof majority.
fuck you daley.
sounds like you've never worked the streets of the west and south sides.
12/28/2010 05:33:00 PM
Huh?
So the City is taking out its second Home Equity loan,always a good sign of financial collapse.
Thanks Illinois Voters!! You put this progressive back into office for four more years! Now we'll really be bankrupt!
I heard Gery Chico filmed a commercial yesterday in which he stated for the record that he wouldn't seek to reduce the pensions of Chicago Fire or Police. One of the firemen who was injured in the 75th st. fire a week ago was there with his arm in a cast; he's a Chico supporter.
Borrowing your way out of debt. A brilliant plan. It is no more viable for a state government than for a family to combat excessive debt by piling on more debt. It's like trying to dry out a flooded basement by pumping water in.
Illinois is a failed state. Let's acknowledge this and abolish the state of Illinois, dividing the carcass geographically between Iowa, Wisconsin, Indiana, Kentucky and Missouri, each of which will annex pieces of territory adjacent to their states.
49 U.S. states are plenty.
Anonymous said...
Heard rumor that Earnie Brown wants a list of bottom 2 seniority people from each watch from my slow northside dist.
12/28/2010 01:29:00 AM
I heard a rumor that all rumor mongers will be found and beaten to a pulp.
"Guess Which 50%?
12/29/2010 12:03:00 AM"
the 50% soon to be residing somewhere that is not Illinois?
"Huh?
12/29/2010 08:11:00 AM"
no coffee before you posted?
Anonymous said...
"He should cut spending by 10% and everyone should take a 10% pay
cut. Welcome to the real world.
12/28/2010 03:23:00 AM"
including those on the dole?
12/28/2010 05:52:00 PM
No, not those on the dole. They will keep on robbing Baker Square Restaurants.
If a fish monger sells fish does a rumour monger sell his rumours?
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