The total financial meltdown of Illinois draws near; the first of many states plunging into fiscal collapse
by: Ethan Huff
NaturalNews.com
Tuesday, June 27, 2017
It appears that far too many years of waste, corruption, and entitlements have sent the state of Illinois on a downward spiral into total financial failure. Republican Governor Bruce Rauner has declared that the state is now entering “banana republic” territory, and that even the Illinois lottery is thinking about bailing as there will soon be no more money left to pay the bills, including lottery prize winnings.
Illinois hasn’t passed a budget in three years – which is completely unprecedented – and the backlog of its unpaid bills has reached an astounding $15 billion. There’s also another $251 billion in unfunded pension obligations that nobody knows how they’ll pay. Because of all this, Moody’s Investors Services has downgraded Illinois’ credit rating to the lowest ever seen in the United States.
Some reports suggest that Illinois may try to file for Chapter 9 bankruptcy, which would be the first time a state has ever attempted this. But in order to do so, Congress would need to intervene to change state law, as currently this would be an impossibility.
Gov. Rauner is calling for a special session of the Democrat-led General Assembly to finally pass a budget bill that would help to get things back on track. The goal is to avoid a situation in which things get so bad that vital services begin to shut down, setting off a domino effect of progressive failures in other areas of civic life.
“We’re like a banana republic,” Gov. Rauner stated earlier this month after the state’s General Assembly once again failed to pass a budget by the regular session deadline. “We can’t manage our money.”
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