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Help me with the truth here: I read several months ago that in Illinois the legislature is required to pass a balanced budget. I rad in the same article that the legislature passed a budget, had all kinds of press conferences about it being balanced and thet there was no reason for Rauner not to sign it. Press conferences that were parroted by the media. Problem was that when you added upo the "balanced" budget (the summary sheet even had it as balanced), it was in reality $4Billion in deficit. And Rauner would not sign it and the legislature would not correct it until Rauner listed what cut HE would make.
Help me with the truth here: I read several months ago that in Illinois the legislature is required to pass a balanced budget. I rad in the same article that the legislature passed a budget, had all kinds of press conferences about it being balanced and thet there was no reason for Rauner not to sign it. Press conferences that were parroted by the media. Problem was that when you added upo the "balanced" budget (the summary sheet even had it as balanced), it was in reality $4Billion in deficit. And Rauner would not sign it and the legislature would not correct it until Rauner listed what cut HE would make.
What is the real story here.
No idea what the real story is for sure. Residents may be more up on it...but heres what I have noticed:
The governor is supposed to provide a budget to be voted on that is balanced. He failed to provide one that was balanced without some huge asterisks. The general assembly then created a budget...that was as you stated a massive deficit. So a non-starter.
Now both the Republican and Democratic sides are going at each other and fighting. And....leading the state into a bad place by their inability to lead. But the Governor is the initial bad guy in my opinion, he is supposed to provide the initial balanced budget and failed to do so. Partisan politics is now doing the rest at a lower level.
Bottom line-until partisan politics is reined in a bit the states going to be in a bad place. Republicans and Democrats alike need to lead, and they are both completely failing to do so.
The Credit worthiness of Kansas is 17th in the nation and Illinois is last. So I know you guys are hoping and dreaming that Kansas will fail...but they're just not. And their unemployment is well below the national average. So keep praying and hoping that they fail....so far, not working.
However, as far as Illinois failing, working.
Ahhhh no. Kansas got dropped back in august to a AA rating. Specifically a AA with a negative outlook, which I think is AA- (Someone feel free to correct me if I am wrong), which puts Kansas in the bottom 10 or so.
But dead on right about Illinois being rock bottom with a A- rating. Not only is it at rock bottom, its got over 3X the population of Kansas. So its a bigger rock
Oh, well I guess that settles it - nothing to worry about here.
Yes, Chicago is different from Detroit in that it does maintain a robust economy. But from a fiscal standpoint, that may not be enough. That would be like saying rich people couldn't file for bankruptcy b/c they make a lot of money.
Very simplistically, there are two sides to a balance sheet - revenue and liability. Strong income / revenue is great, but must adequately cover your expenses / liabilities. Chicago does not have a revenue problem - it has a liability problem - too many promises of other people's money.
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Originally Posted by ColdAilment
I can tell you one thing without a doubt in the world.
Chicago is by NO MEANS WHATSOEVER the next Detroit. Not even CLOSE. Chicago's economy is 100 times more diverse than Detroit's, it's not going to crumble the same way Detroit did, it's just becoming a tail of two cities.
Help me with the truth here: I read several months ago that in Illinois the legislature is required to pass a balanced budget. I rad in the same article that the legislature passed a budget, had all kinds of press conferences about it being balanced and thet there was no reason for Rauner not to sign it. Press conferences that were parroted by the media. Problem was that when you added upo the "balanced" budget (the summary sheet even had it as balanced), it was in reality $4Billion in deficit. And Rauner would not sign it and the legislature would not correct it until Rauner listed what cut HE would make.
What is the real story here.
Here is his budget plan here. It would have closed the deficit gap by over 2 billion
But that budget proposal was merely a way to bring the Democrats who have a super majority in the General Assembly to the negotiating table. Which it has not.
Quote:
Originally Posted by greywar
No idea what the real story is for sure. Residents may be more up on it...but heres what I have noticed:
The governor is supposed to provide a budget to be voted on that is balanced. He failed to provide one that was balanced without some huge asterisks. The general assembly then created a budget...that was as you stated a massive deficit. So a non-starter.
Now both the Republican and Democratic sides are going at each other and fighting. And....leading the state into a bad place by their inability to lead. But the Governor is the initial bad guy in my opinion, he is supposed to provide the initial balanced budget and failed to do so. Partisan politics is now doing the rest at a lower level.
Bottom line-until partisan politics is reined in a bit the states going to be in a bad place. Republicans and Democrats alike need to lead, and they are both completely failing to do so.
Sorry but that is BS. Rauner has only been governor for less than a year. For the past 10+ years we've had a Democratic executive and for several decades a Democratic General Assembly (mostly with super majority status). The Democrats own the mess that Illinois is in. Fact.
Quote:
Originally Posted by greywar
Ahhhh no. Kansas got dropped back in august to a AA rating. Specifically a AA with a negative outlook, which I think is AA- (Someone feel free to correct me if I am wrong), which puts Kansas in the bottom 10 or so.
But dead on right about Illinois being rock bottom with a A- rating. Not only is it at rock bottom, its got over 3X the population of Kansas. So its a bigger rock
Illinois is broke not because we don't collect enough revenue. We are broke because our slime ball politicians promised lofty pensions to public unions
Illinois collects $3,008 in state-tax revenue per Illinoisan, nearly $200 more per person than the highest-taxing neighboring state, Wisconsin. Only 13 other states in the country take in more tax revenue per person than Illinois.
Moreover, what these numbers do not show is the massive local-tax burden that Illinoisans also must shoulder. Illinois residents pay the second-highest effective property-tax rates in the nation, according to the Tax Foundation. Illinois’ local governments take in more property-tax revenue per person than those of any neighboring state, and more than governments in all but nine states in the country.
and about those public sector pensions....
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. IMRF benefits are growing far faster than city budgets and the inflation rate
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An 87 percent funding ratio still means a $4 billion shortfall
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Taxpayers are on the hook for increasing city contributions to IMRF to pay for growing benefits and unfunded liabilities
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. IMRF’s funding guarantee pits municipal pensions against local police and firefighter pensions and other services
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IMRF salaries climb, while Illinois household incomes stagnate
Oh, well I guess that settles it - nothing to worry about here.
Yes, Chicago is different from Detroit in that it does maintain a robust economy. But from a fiscal standpoint, that may not be enough. That would be like saying rich people couldn't file for bankruptcy b/c they make a lot of money.
Very simplistically, there are two sides to a balance sheet - revenue and liability. Strong income / revenue is great, but must adequately cover your expenses / liabilities. Chicago does not have a revenue problem - it has a liability problem - too many promises of other people's money.
As long as the wealthy property tax payers and corporations remain, they'll just keep increasing taxes to pay the bills. However, if wealthy people and corporations decide it's not worth it and begin moving, it could snowball into another Detroit situation...I hope not.
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