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Discussion Starter · #1 ·
It's mighty profitable for most states.

The Mafia used to take less than 1% of what the states get on their numbers games.
 

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Why? Illinois cannot meet its debts right now. Why would it shut off a source of revenue?
 

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It's the other way around. The lottery is cutting off Illinois because Illinois can't pay the lottery company.
 

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Illinois is in serious trouble right now. $15 billion in unpaid bills. S&P Global Ratings is giving Illinois junk bond status if they do not clean up their budget by Saturday (this would be a first ever for state issued debt). Everything leaking out of the special session is that no deal is on the horizon, so . . .
 

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A state, unlike a city or county, cannot declare bankruptcy.
 

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I don't understand why they're not paying. They don't have a budget, but they still have revenue, right? They're running up credit without paying.

Does no budget mean no authorization to pay? I could not find an explanation googling around.

What kind of stupid financial structure lets you charge all you want, but can't actually pay the bill?
 

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Illinois started giving big lottery winners IOUs instead of payments sometime last year because they couldn't afford to pay the winners.
 

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I don't understand why they're not paying. They don't have a budget, but they still have revenue, right? They're running up credit without paying.

Does no budget mean no authorization to pay? I could not find an explanation googling around.

What kind of stupid financial structure lets you charge all you want, but can't actually pay the bill?
They literally do not have the money. As I said before, $15 billion in unpaid bills right now. That's not unfunded liabilities, that's unpaid bills. They have a quarter trillion in unfunded pension liabilities alone. It's a mess.

All those generous public sector pensions are finally catching up to their promises.
 

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GeePeeDoHolic
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They literally do not have the money. As I said before, $15 billion in unpaid bills right now. That's not unfunded liabilities, that's unpaid bills. They have a quarter trillion in unfunded pension liabilities alone. It's a mess.

All those generous public sector pensions are finally catching up to their promises.
I get the no money part. It just seemed weird to have zero payments on bills while the individual state agencies do all the credit. I thought the state usually borrowed to spend through its agencies.

Looks like the state basically cut the agencies off.

As the new fiscal [2016] year began, not all spending stopped. State agencies often purchase goods and services from vendors on credit. The agencies are then reimbursed from the State according to appropriations in the budget and in turn are able to pay the vendors. However, on September 18, 2015, the Supreme Court of Illinois ordered that the State of Illinois must pay state workers and adhere to federal consent decrees which mandated the continuation of various health and social service programs.[10] While this prevented a government shutdown, it also meant that state agencies were required to continue purchasing services with no way to pay the vendors.
https://en.wikipedia.org/wiki/Illinois_Budget_Impasse

The courts have also ordered spending at 2015 levels but with lowered 2016 revenues. What a mess.

http://www.reuters.com/article/us-usa-illinois-budget-idUSKCN0RI2EQ20150918
In the weeks since fiscal 2016 began on July 1, U.S. and state judges have ordered Illinois to pay its workers and adhere to federal consent decrees mandating certain healthcare and social service programs.
That has put $14 billion of state spending under judicial control, according to Illinois Budget Director Tim Nuding. It has also placed the state on a path to spend more than its estimated fiscal 2016 revenue of $32 billion. The courts have ordered spending at levels in place in fiscal 2015 when revenue totaled about $36.6 billion due mainly to higher income tax rates that expired on Jan. 1.
 

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Discussion Starter · #11 ·
Ahhh, public employee pensions. Coming to a city and state near you in the future.
 

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All those generous public sector pensions are finally catching up to their promises.
This is what happens when a state promises its employees that they can retire at 50 with full pension and benefits. Then let them game the system with "best earnings years" practices pumped up by overtime pay. And double dipping with another state job.

Keep looking for that magical unicorn that sh*ts skittles.
 

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An excellent example of how politicians are too reluctant to take entitlements away and risk political suicide. Democrats and Republicans alike saw this problem coming for some time and everyone turned a blind eye to it as no one wanted to make the tough call to fix the issue.
 

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Both political parties may be complicit but IL and Chicago in particular are hotbeds of democratic political corruption.
 

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Best idea yet. Go read what to do with the 4 parts and extra star on the flag.

Nemo

http://www.chicagotribune.com/news/...olving-illinois-kass-met-20170620-column.html

What to do with a broken Illinois: Dissolve the Land of Lincoln
John Kass, Chicago Tribune

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.

So as the politicians meet in Springfield this week for another round of posturing and gesturing and blaming, we need a plan.

And here it is:
Dissolve Illinois. Decommission the state, tear up the charter, whatever the legal mumbo-jumbo, just end the whole dang thing.

. . .
 

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Best idea yet. Go read what to do with the 4 parts and extra star on the flag.

Nemo

http://www.chicagotribune.com/news/...olving-illinois-kass-met-20170620-column.html
I like it. Straight forward. Tackles the issue dead-on. If Hillary was in office, she's bail them out, so this will be interesting to see what happens as government collapses in Illinois. Probably everyone will keep status quo and just ignore it, pretending it isn't happening. It is going to be interesting to see how long the state can rack up debt...
 

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Maybe we should just make them re-apply for admittance to the Union. I believe there is a precedent established almost a hundred and fifty years ago for that very process. New State Constitution and reaffirm the Constitution AND all of the Amendments. This time the Second Amendment rather than the Fourteenth would be the one we need to focus on.
 

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Illinois finally gets a budget -- but it's still in big financial trouble


Despite the $36 billion budget getting pushed through, Illinois remains in a financial mess following decades of mismanagement and the recent budget fight. The state has racked up $15 billion of unpaid bills and owes a quarter-trillion dollars in pensions to state workers when they retire.

Unfortunately, the budget compromise may not be enough to put Illinois back on a sustainable fiscal path. Moody's said on Wednesday that it may still make Illinois the first state with a "junk" credit rating despite the $5 billion being raised by the tax hike. A downgrade would make Illinois the first state to receive a "junk" rating and could likely trigger higher borrowing costs for America's fifth-largest state.
Rep. Steven Andersson, a Republican who supported the override of the GOP governor, said on the House floor that the past few days were "brutal" and that he received death threats and hate mail. But he said he felt he had no choice in his vote.

"We are going into freefall if we don't do this. Our options are this -- or financial meltdown," said Andersson.

Moody's raised concern that the budget deal doesn't address the $251 billion in funded pension liabilities the state faces. "So far, the plan appears to lack concrete measures that will materially improve Illinois' long-term capacity to address its unfunded pension liabilities," it wrote.
 

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I suspect their "tax hikes" will raise about as much as Connecticut's did. That is it drove taxpayers away and actually cost tax revenues.
 
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