$6 billion debt will be issued for unpaid bills, according to Senate Bill 2218.
Unpaid bills are now about $14 million.
To entice lenders, part of the individual income tax collections will be deposited in a fund to pay back the bonds.
Also, proponents are relying on passage of Senate Bill 9 by the Illinois House as the main tax increase vehicle.
It includes a 32% increase in the income tax rate and many new service taxes.
One legislator observed, “There will be a lot of revenue raised to fund more spending, not pay down debt.”
Illinois has reached critical debt mass.
You can’t borrow/tax your way out of debt, and that’s a fact.
My only hope is to flee this state before Madigan & Co. taxes me
out of my home and into bankruptcy.
No to your dumbass proposal. NO one will give Illinois a loan anyway.
And yet another report on the Illinois financial crisis from Fox News:
http://www.foxnews.com/politics/2017/06/20/illinois-careens-into-financial-meltdown-and-not-even-lottery-is-safe.html
There are bond buyers that will purchase newly issued bonds from the state of Illinois.
They will demand a higher interest rate compared to a state government with a better credit rating.
Illinois has the lowest credit rating of any state right now.
The result, Illinois taxpayers pay more in taxes to fund the higher interest payments for bonds issued at a time when the state has a poor credit rating.
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Illinois Policy Institute
Illinois Has the Lowest Credit Rating on Record for a U.S. State
by Ted Dabrowski, Vice President of Policy,
and
John Klingner, Policy Analyst
June 1, 2017
http://www.illinoispolicy.org/illinois-now-has-the-lowest-credit-rating-on-record-for-a-u-s-state
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Fiscal Year 2018 (FY 2018) for the State of Illinois is July 1, 2017 – June 30, 2018.
So the alternative to raising taxes is to borrow money, which will have to get paid back with interest, plus raising taxes…
http://theeconomiccollapseblog.com/archives/the-worst-financial-nightmare-in-illinois-history-erupts-as-state-comptroller-declares-we-are-in-massive-crisis-mode
Kick the Can is our financial plan.
Better to default and have the courts enforce payment plans.
Stupid GOP: borrowing only means more money to Democrats for kickbacks (sorry, campaign donations) or for Democrat patronage jobs.
Republican Governor Bruce Rauner issued an Executive Proclamation calling the General Assembly back into session, beginning Wednesday June 21, 2017.
Here is a video of the Governor’s announcement made on June 15, 2017.
https://www.facebook.com/GovRauner/videos/667655563440903
“The House and Senate Republicans have a compromise, balanced budget plan to end the impasse.
It includes property tax relief, job creation, term limits and spending caps.
Today we’re calling lawmakers back to Springfield for a continuous special session that will start next week and stay in effect until a balanced budget is passed.”
Here is a copy of the Executive Proclamation issued by the Governor on June 15, 2017, calling the State House and Senate back into session, beginning June 21, 2017:
https://www2.illinois.gov/IISNews/14530-proclamation_for_special_session.pdf
I wish I knew more details regarding letting the state get permission to file bankruptcy. It sounds like a great idea to me.
The United States Congress (House and Senate) would have to pass legislation allowing states to go bankrupt.
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Illinois Policy Institute
The Fiscal Times Asks: “Could Illinois be the First State to go Bankrupt?
Press Release
June 16, 2017
http://www.illinoispolicy.org/press-releases/the-fiscal-times-asks-could-illinois-be-the-first-state-to-go-bankrupt
The Fiscal Times
Could Illinois Be the First State to Go Bankrupt?
by Eric Pianin
June 12, 2017
http://www.thefiscaltimes.com/2017/06/12/Could-Illinois-Be-First-State-Go-Bankrupt
State of Illinois
Office of the Governor
Press Release
Governor Rauner Calls Lawmakers Back to Springfield to Pass Compromise Balanced Budget Plan
June 15, 2017
https://www2.illinois.gov/Pages/news-item.aspx?ReleaseID=14530
Illinois Policy Institute
Reject the $5B Tax Hike
“On June 14, Republican lawmakers introduced a budget plan that includes the same $5 billion tax hike found in the failed ‘grand bargain.'”
http://www.illinoispolicy.org/petitions/reject-the-5b-tax-hike
Illinois Senate Republicans
Press Releases / News Items
– scroll through the list to see their take on the proposed budget and special session.
http://www.senategop.state.il.us/News
If filing for bankruptcy involves a complete pension overhaul and austerity, it might make sense.
If we’re literally going to change nothing but schluff off our debt to the rest of the U.S., there will be no point.
We’ll just end up in the same position we’re in now in 20 years or so.
4 cents in the dollar is what GM employees received for pension benefits when Obama made the bankruptcy deal with big auto and had us turning in cash for clunkers to ‘create jobs’.
If those blue collar union workers can take it up the ass so can the lazy teachers and government employees.
4 cents on the dollar sounds fair to me. Bring on the bankruptcy. The politicians, ‘leaders’, union bosses and inionlemmings deserve the shit the sow.
Tic, oick goes the exploding pension clock assh—
To learn more about how bankruptcy or some form of bankruptcy or debt restructuring might work for the states, look into municipal bankruptcies (Detroit, Stockton, San Bernadino, Vallejo, Central Falls) and Puerto Rico (PROMESA).
Probably the simplest way to get a high level overview quickly is look at Wikipedia.
In general the pensioners have fared better than the bondholders.
The process is whatever Congress passes, so likely overly complicated favorable to powerful special interests.
One can only imagine the protests….think Madison Wisconsin ACT 10 and agitators shutting down the Trump speech at UIC in 2016.
Beejeesus,
The GM bankruptcy agreement basically ignored the law in order to favor the UAW pension fund over other creditors.
The UAW has absolutely nothing to complain about, but that won’t stop them.
States don’t really need bankruptcy protection.
They have sovereign immunity.
They can simply default.
Creditors would have to sue in Illinois court.
The courts can order the state to pay, but they don’t have the power to force force the legislature to pay up if they don’t want to.
It’s been a while, but it has happened before.
There are various GM pensions (hourly UAW workers, salaried white collar workers, Delphi).
PBGC took over Delphi.
The Delphi pension plan terminated July 31, 2009.
PBGC Trusteeship was effective August 10, 2009.
PBGC did not take over any other GM pensions.
So GM pensions were not cut to 4 cents on the dollar.
Plus, when changes are made, one has to consider if changes apply to existing workers going forward, don’t apply to existing workers, and if changes are different for current workers v future workers.
Would take awhile to sort that out, but have never heard any GM pension received cuts anywhere close to 4 cents on the dollar.
As mentioned in a comment above above, the UAW pensions were to a great extent bailed out by taxpayers via the taxpayer bailout to GM.
And as covered in a post earlier this year or last year, GM did not repay all of the bailout.
Leave it to the repubs to shoot themselves in the foot.
http://www.dickmorris.com/destroy-democratic-party-starting-illinois-lunch-alert/?utm_source=dmreports&utm_medium=dmreports&utm_campaign=dmreports
Senate Bill 2216 (SB 2216) in the 100th General Assembly is a related appropriations bill funding new projects.
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McHenry Times
Appropriations Bill Uses Statewide Money for McHenry County Projects
by LGIS Newsfeed
June 28, 2017
http://www.mchenrytimes.com/stories/511134170-appropriations-bill-uses-statewide-money-for-mchenry-county-projects
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Projects in the following cities, villages, and townships are included in the bill:
– City of McHenry
– Cary
– Village of Hebron
– City of Marengo
– City of Algonquin
– Burton Township
– Hebron Township
– Village of Lake in the Hills