Illinois Bankruptcy?
- Illinois residents may feel some solidarity with the likes of Puerto Rico and Detroit.
A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it's impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.
Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.
An interesting read, becoming more interesting by the day.
Labels: money questions, state politics
posted by SCC at 12:01 AM
63 Comments:
Bankruptcy means no pensions. Expect a quick exodus of city workers if this is the case.
$16 billion in unpaid bills .. IL pensions in hole for $130 Billion..... BANKrupt Illinois is done along with spend, tax, borrow Chicago and Crook County ,Il
There are other options, such a cutting spending, graft, regulations, and corruption. Other states (Texas for example) are billions of dollars in the black and still have relatively low taxes.
All surrounding states have budget surpluses, why don't we? Oh, I know, it's RAUNERS fault, you dumb asses better stop voting for these assholes like Madigan and Cullerton and vote someone in that will take the bull by the horns and stop the decline of the state. If it doesn't happen soon, our pensions will really take a hit. If you think the public will protect police pensions, you have another thing coming. The teachers and democrats hate us and will do what they can to save everyone BUT us.
This may the real reason behind the “budget impasse”. The state is totally broke and the politicians are trying to figure out what to do in order to save their asses.
rb
You know who will walk away still rich? The fucking thieving politicians. Chicago needs fucking republican leadership yesterday! What the fuck is the worst that can happen??
I think any state that declares bankruptcy and wants the other 49 states to bail it out needs to be sent back to Territorial status.
Yes Territorial Status. No US Senators or Representatives. The US President appoints a Territorial Governor. They cannot be readmitted as a state until they have balanced their state books for five years, and paid back everything they were lent by other states or the feds.
You elected the idiots that screwed your state up, you own it. You get treated like little children until you learn to act like adults. You do not get a say in running the federal government until you can run your own damned state responsibly. Will it hurt? Damned straight! Stupid should hurt. Irresponsible should hurt. Electing crooks should hurt. How many Illinois Governors are in jail? How many Representatives are in jail?
IL is corrupt. That is why it is broke.
Whats rahmie doing with the money from recent property tax increases?
Vote Republican
I am confused. I thought that Illinois law will not let a municipality declare bankruptcy. Can someone help me out here?
Currently No State can file bankruptcy.
Puerto Rico is a territory.
Detroit is a city.
Madigan and Cullerton are the cause of this State's financial ills.
They both have to go.
TOPIC: "Could Illinois be the first state to file for bankruptcy?" - THEE (NYPD) RANT
And how long after a bankruptcy do you think it would take before they ran us right back into the red again? I see it now after the first year, "I oh we are only off by $100 million so we are selling bonds again." Next year the same and so on. How about pay your damn bills people? How is a deficient even allowed by the government anyhow? How is it I have zero debt? Such a joke. Highest taxes of any city, county and state and all crying broke. More corruption than anywhere. What an embarrassment that we had two governors in prison at the same time. Unreal. So glad I'm out of here in 60 days.
let it burn to the ground, especially the city of Chicago. Remember if they go bankrupt they are unemployed. And who the hell is going to elect a fucking guy that made unprecedented history by allowing an entire state to go bankrupt? It will be the end of Illinois and Chicago politics.
If you are a committed democrat, please don't abandon your fubar'ed state and move to my red, financially healthy state and start voting. Oh, leave your criminals and illegal aliens too!
J.J.
which is why radical options such as bankruptcy are being floated as potential solutions.
How about we try something REALLY radical, and vote Madagan and his crew out?
I fucking hate Illinois, Cook County and Chicago!
These places can all go to hell!
The fact that this article is a product of the mainstream media and that even the idiots are talking casually about a possible Illinois bankruptcy tells you how far we have sunk.
The fact that this mainstream media article even mentions outright default and debt repudiation as other possible state strategies also tells you how the conversation has finally turned to the reality of it all.
https://mises.org/library/repudiating-national-debt
But the childish Illinois voters do not want reform and like the brat who can't get his way, blames his parents. They blame Rauner and will vote him out. The next governor will be a Democrat and once he's sworn and the Dems control 100% of Illinois state government again, all the brakes will be off government spending. The people demand a budget and they will get one, a budget so wildly out of control that the debt levels will accelerate at a rate never seen before. The final stage of the death spiral.
This will really be something to see.
Won't they have to open the state's books to a strict auditing to show where all the state's tax revenue has gone?
And in so doing, won't an auditing show all the theft and corruption and mismanagement? Opening up the political class to prosecution?
You think the corrupt politicians would avoid such a scenario at all costs.
The state is not "broke". They take in money daily. 30 plus billion a year. Taxes you pay, fines,etc. There is no budget. The politicians allow spending more than the amount taken in. Just like at your own house , you must live within your means. It's not that hard of a concept to understand.
That's not important! We need to spend money preparing for the zombie apocalypse! Any word from downstate on how that is progressing?
Not if but when. Board of Ed will be the first to go followed by pension funds.
Draining the swamp 101:
Step 1- cut off funding. Getting a cut of nothing is nothing.
No pensions for you!
02:31: nailed it. Run for office, please, we need people with common sense.
IL and CA should merge and become an independent socialist broke Country. They deserve each other.
Any elected official should have their pensions taxed at 99% and capped. 2:31 AM is spot on!
Keep voting for the Democrats.
Anonymous Anonymous said...
Bankruptcy means no pensions. Expect a quick exodus of city workers if this is the case.
6/17/2017 12:06:00 AM
What are you talking about? In Detroit, police and fire still receive their full pensions, most city workers to a 25 % cut. Not a good thing, but to say the pensions are gone misinformed or stupid
Cook County elected officials are ethically bankrupt, many of its citizens and other leaders are spiritually bankrupt and now the State of Illinois is fiscally bankrupt. We need to spend our way out of this deep dark hole and we need the money to gotten through higher taxes and fees. Yep, that ought to do it.
Chicago and Illinois has so many stupid ill-informed voters. Year after year things get worse and still there is no change. These will be the same stupid and naive folks that'll try to blame Governor Rauner even though democrats have been the reason for failure all these years.
Gold braid pensions cut those in half there way ahead of it.
Cut the freebies to the great unwashed to the extent that they flee the state instead of the taxpayers.
I like the Territory idea. In furtherance of this idea, I think Illinois should dissolve, and Wisconsin, Iowa, Missouri, Indiana, and Kentucky can extend their borders. Illinois is then really gone, not just monetarily like it is now. Then the States in the black can straighten out this mess. And in the appropriation of this territory, the law is Madigan, Cullerton, Durbin, and the rest of these office holding morons can't ever run for political office again.
SS
At this point there are no way to fix the problems Illinois has, anymore. This has been going on for at least 50 years, and now there will be insufficient revenue to pay for pensions, past-due bills, and ever increasing welfare spending. Funding the EBT cards is going to be the last domino to fall, since that will mean major riots.
One of my friends, who is a public finance expert, told me about 5 years ago that he fully expects to get IOUs from the State University Retirement System, and not payments. The money simply will not be there.
I'm hoping to leave before the dung hits the impeller... Family issues don't allow me to leave now.
Likely or not, the conditions that led to a broke and busted Chicago or Illinois to borrow beyond its revenue means and its ability to timely repay loans should have never been allowed.
Crooked corrupt politicians brokering deals with financiers for political contributions is the first item that should be eliminated.
I'm still hoping pensions will remain protected under State Constitution.
Odd is that PR has 3 times the amount of unpaid liabilities than Illinois is astounding.
No wonder they want statehood, have someone else pay their politicians bills.
It's not the people, it's the elected politicians that ruins a nation, a state and a city, town, community.
Giving away more than taking in as if what they're taking in comes on the back and doesn't effect the working class.
A universal low wage and we are all equals on Rahm's Communal Farm.
The bread line forms to the right.
Weezee thinks Chicago is a state.
6/17 2:31:00
AMEN. I agree 100%.
Hillary promised a bailout won't get no help from Trump.
ACCOUNTABILITY!!! NEW WORD OF THE PEOPLE, BY THE PEOPLE, FOR THE PEOPLE! It is time to hold all that were political in Chicago responsible for the misappropriation of taxes over the last 30 years ACCOUNTABLE! These people gave away the farm and walked away. Find them punish them, economically, take back the money they did not earn! Go to Springfield then Washington and do the same across the board. Strip them ALL of their pensions and premium healthcare. Next do an audit and follow the money, there is always a trail..... ACCOUNTABILITY!!!!!
Send everyone on welfare to Carousel. "Logan's Run"
which is why radical options such as bankruptcy are being floated as potential solutions.
How about we try something REALLY radical, and vote Madagan and his crew out?
6/17/2017 07:20:00 AM
--------
Why Don't You?!?!
You and your fellow citizens keep voting them in.
You keep voting for Democrat Ass4ole Mayors.
Find a Rudy Guiliani for Chitcago!
Vote them all out!
Get your lazy, apathetic ass out to campaign for change!
Drag your lazy non voting apathetic neighbors to the polls.
Good website:
http://www.truthinaccounting.org/
IL:
http://www.statedatalab.org/state_data_and_comparisons/detail/illinois
I like the territory idea and then allowing the surrounding states to expand their borders to consume Illinois but Wisconsin and Indiana will not want to take Cook County! So, let Cook County become it's own state or let it exist as an unaccessed territory. I give two flutters of a flatulent rat's ass!. Goodbye and good riddance!
HOW MUCH OF CHICAGO IS ON "WELFARE"? You think these people are paying into anything? THEY contribute NOTHING, use EMS, Police, Schools and Hospitals more then ANY WORKING PERSON...........This rash will not go away.......The only people making money are SLUM LORDS, this is why there are new Apt Buildings being built, investor know where the money is at.........
New state Of northern Illinois. I 39 TO I 80 then east to Indiana. SEPARATE THE PROBLEM from the rest of us. Best thing I did was leave cook County during the mass migration of problems to the south suburbs. Let's see how that experiment works.
IL is corrupt. That is why it is broke.
6/17/2017 02:31:00 AM
Illinois is not broke.
Illinois had a spending problem. The money isn't going where it should be going. Bloated salaries of Exempt from Career Service Clout jobs, double dipping into multiple pension plans, Gold Braid Pensions for given and not earned ranks.
To the idiot that wants the neighboring states to extend their borders and take in Illinois. Fuck that, it's your problem you cerated it you solve it. We already have enough Illinois idoits visiting but at least they go home if you can call a sewer home. It's not our job to fix what you screwed up.
The unknown issue is no state has ever been in Ill.position. Odds are the federal pension PBCG will assume liabilities and disburse what ever is in holdings. Roughly, if the pension plan is 50% underfunded then the distributions will be 50% of the calculated pension distribution. There are administrative fees that will be charged against distributions. Another nice thing, existing pensions will fall under this. And because PBCG is only tasked with distributing existing funds, the ballance will not grow more than the rate of bank interest. With todays 1-1/2% the fund will be depleted. When that happens the PBCG closes the pension and in the words of Porky Pig "ba da ba da ba da,thats all folks"
Oh, and the PBCG can take your medical and throw it out. If medical is included in the distribution the fund depletes faster. But you will get no say in what happens.
lets start with the top brass of the Chicago Police Dept, they should leave at Lieutenants pention pay ,not get paid at a higher rate.
Anonymous Anonymous said...
New state Of northern Illinois. I 39 TO I 80 then east to Indiana. SEPARATE THE PROBLEM from the rest of us. Best thing I did was leave cook County during the mass migration of problems to the south suburbs. Let's see how that experiment works.
6/18/2017 12:18:00 AM
Might have a bit of a problem with revenue in your new state. You have separated the part where something like 90 percent of tax revenue is generated.City and suburbs are intrinsically linked. Cut off the city and the suburbs will wither and die. The city is why the suburbs exist.
Anonymous Anonymous said...
Anonymous Anonymous said...
Bankruptcy means no pensions. Expect a quick exodus of city workers if this is the case.
6/17/2017 12:06:00 AM
What are you talking about? In Detroit, police and fire still receive their full pensions, most city workers to a 25 % cut. Not a good thing, but to say the pensions are gone misinformed or stupid
6/17/2017 09:55:00 AM
I'm going with stupid. Didn't take the time or make the effort to be informed.
Got 556???
What 6/17/2017 07:20:00 AM said.
+1
Across the board payroll reductions of 30% for ALL government employees (state, local and the schools).
Sure go ahead and bailout Chi and Ill! However assign a trustee or bankruptcy officer to monitor and approve of every penny going out.
Anonymous Anonymous said...
Anonymous Anonymous said...
Anonymous Anonymous said...
Bankruptcy means no pensions. Expect a quick exodus of city workers if this is the case.
6/17/2017 12:06:00 AM
What are you talking about? In Detroit, police and fire still receive their full pensions, most city workers to a 25 % cut. Not a good thing, but to say the pensions are gone misinformed or stupid
6/17/2017 09:55:00 AM
I'm going with stupid. Didn't take the time or make the effort to be informed.
6/18/2017 12:04:00 PM
--
I am not the original poster. Absolutely Detroit cops got their pensions, I think all of it. But that doesn't mean we would. It's up to the bankruptcy judge/ settlement, etc.
The unknown issue is no state has ever been in Ill.position. Odds are the federal pension PBCG will assume liabilities and disburse what ever is in holdings. Roughly, if the pension plan is 50% underfunded then the distributions will be 50% of the calculated pension distribution. There are administrative fees that will be charged against distributions. Another nice thing, existing pensions will fall under this. And because PBCG is only tasked with distributing existing funds, the ballance will not grow more than the rate of bank interest. With todays 1-1/2% the fund will be depleted. When that happens the PBCG closes the pension and in the words of Porky Pig "ba da ba da ba da,thats all folks"
Oh, and the PBCG can take your medical and throw it out. If medical is included in the distribution the fund depletes faster. But you will get no say in what happens.
6/18/2017 08:34:00 AM
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It's PBGC, and I doubt it. They deal with private pensions. THe entire ERISA statute deals with this. No mention of public pensions as far as I know. And an interesting tidbit, if a corporation underpays there are HUGE PENALTIES. Not so if the city underpays, because PBGC has nothing to do with the city.
Anonymous Anonymous said...
To the idiot that wants the neighboring states to extend their borders and take in Illinois. Fuck that, it's your problem you cerated it you solve it. We already have enough Illinois idoits visiting but at least they go home if you can call a sewer home. It's not our job to fix what you screwed up.
6/18/2017 07:04:00 AM
Signed,
"I like Ford trucks better than them chevys anyday Indiana guy"
Anonymous Anonymous said...
IL is corrupt. That is why it is broke.
6/17/2017 02:31:00 AM
Illinois is not broke.
Illinois had a spending problem. The money isn't going where it should be going. Bloated salaries of Exempt from Career Service Clout jobs, double dipping into multiple pension plans, Gold Braid Pensions for given and not earned ranks.
6/18/2017 01:40:00 AM
---
exactly. Illinois is actually a very profitable state, meaning we pay in taxes more than the federal government gives us. There is a whole list of the states that don't produce jack shit and Illinois is not one of them. THis just goes to show how bad our politicians are that they can corrupt such a great state.
And a word about cities ... while I'm at it ... cities are usually EASILY profitable. Any city. Just because of the demographics and what is built with the money coming in. They are easy to finance because of the cash coming in, in general. No decent city should have money problems. This, again, just goes to show how shitty out politicians are. But I guess you'd also have to consider that a lot of the south and about all of the west sides are more or less useless.
Anonymous said...
Got 556???
6/18/2017 01:39:00 PM
No, but I got plenty of 7.62x39.
If the city were to try or the state even, they would have to open up their books and everyone would go to jail. Not going to happen. (And yes, grammar police, I do know city and state should be capitalized, but they are not worthy of the designation.)
Since Trump got in almost 4 trillion dollars are back in the stock market which means are pensions should be flourishing. It seems like it doesnt matter how . good we do . The more whatever revenue coming in the more they steal. We need Trump to come in and fix this in the police favor. Id like to be out of the whole thing and invest i something on my own
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