Treasurer: IL on Brink of Financial Disaster

[AgeOfEnlightenmentSCP]

After a 66% across-the-board tax increase, the State of Illinois is still deep in dept and in danger of defaulting on its obligations.

sweetness-light.com/archive/il-still-deep-in-debt-after-66-tax-hike

Illinois faces an estimated $45 billion in principal and interest payments on its outstanding debt over the next 25 years, up nearly four-fold from the $12 billion owed in 2002

Adding to the state’s debt burden is $140 billion in unfunded pension and retiree health-care liabilities and $8 billion of currently unpaid bills, the paper said.

"Every household in Illinois is responsible for the repayment of $10,000 to reimburse our bondholders in the coming years," Rutherford said in a statement, adding that unpaid bills and pension and health-care liabilities would boost that total to $42,000 per household.

Illinois’ widening structural deficit, huge unfunded pension liability, inability to pay the state’s bills on time, cascading bond ratings and its propensity to borrow its way out of financial problems have made the state a major worry in the $2.9 trillion U.S. municipal bond market.

[reasonfreedom]

They should default while they are still ahead IMO.

[AgeOfEnlightenmentSCP]

Oh, they'll default alright. They just have to wait until they can blame it on Republicans.

[AgeOfEnlightenmentSCP]

Funny, I thought tax hikes were a panacea that would save IL, and the country.