Illinois Falling Further Into Debt: No One is Surprised

The State of Illinois has been a budget basket case for years.  The state has runaway pension problems and is billions behind in paying creditors.  State legislators can’t seem to stop the bleeding.

The state’s budget deficit will top $3 billion and its pile of overdue bills will hit a new record high by fiscal 2025 if the state’s “unsustainable” tax structure remains in place, according to a five-year forecast released on Wednesday by the governor’s budget office.

The economic and fiscal policy report said the state’s general fund annual deficit will reach $3.2 billion by 2025, with the unpaid bill backlog ballooning to $19.2 billion. Annual pension contributions will climb to $9.65 billion in fiscal 2025, up from $8.1 billion in the current fiscal year.

Illinois has the lowest credit rating of any state because its pensions are underfunded by a whopping $133.5 billion.

Governor J.B. Pritzker has proposed what he calls a “fair tax” plan that would replace Illinois’ flat income tax rate with graduated rates that tax higher earners more to generate $3.6 billion in additional annual revenue.

Pritzker said in a statement:

“Without structural changes like the fair tax, Illinois will continue to struggle to make ends meet, pay our bills on time and deliver vital services, like public education and public safety.”

Clearly he missed the memo on his state’s finances.  They aren’t “struggling to make ends meet,” they’re failing miserably and not paying creditors.

State lawmakers earlier this year took action to place a constitutional amendment for graduated tax rates on the November 2020 ballot. If voters reject the move, Illinois would have to cut spending on many essential services by about 15% or increase the flat income tax rate, according to the report.

For fiscal 2021, which begins July 1, state agencies were asked for options to reduce spending by 6.5%, along with ideas to improve efficiency and consolidate programs, the report said.

See Comments (6)

Leave a Reply

Your email address will not be published. Required fields are marked *


Comments (6)

  1. Martin Shaw

    No Federal bailout. Let them take bankruptcy. The Americans people are not responsible for Illinois corruption.


    Restore democracy by making CONservatives irrelevant!

    Tazx the rich. Problem solved.

  3. John Stuczynski

    This what happens when democrats run anything. Just no management skills. Spend is the only word they know the definition of.

  4. Anony Mous

    Chicago. THE model city for Democrat corruption. Has been for over 100 years and won’t get any better.
    One of THE prime reasons is that they can’t educate their own sufficiently to learn enough to earn enough to pay enough taxes to keep the place from the debt pit, created mostly by the CTA, aka Chicago Teacher’s Association. IF the city had any brass ones they’d negotiate a contract that would require the teachers to forego their paychecks until such time that they didn’t rank in the bottom of the National Education Assessments year after year after year after year… ad infinitum.
    The next time they go on strike, let them STAY on strike until their pension fund is fully funded. By then most of them would be dead anyway.
    Almost perfect example of what ‘socialist’ greed creates.. since the teachers are the ‘elite’ taking from all the rest.. stealing their futures.

  5. Bob Weise

    Looks like Illinois needs some adult supervision. Not a coincidence that every major city controlled by the democrats is going straight to hell. When are Americans going to learn not to elect them???


    We moved out of Illinois and into the sunny state of Arizona. I grew up in the suburbs and loved growing up in the midwest.
    As I got older and realized how the Illinois government was choking me and the economy with excessive regulations and taxes I’m grateful we left it all behind. I don’t miss high property taxes, crook county, crooked politicians, or the unconstitutional laws hampering the 2nd amendment. My property taxes went from $15,000 to $3200 a year. I voted often but never for the Democrats. Definitely didnt vote for Obama or Rod Blagojevich. Good by and there is no way we will ever move back to IL.

Do NOT follow this link or you will be banned from the site!