Courtesy of Mish.
Flat Out Broke
Illinois is in serious fiscal trouble. Unpaid bills will hit about $10.5 billion later this year, counting unpaid lotto winners and state university bills.
Lotto is a small problem overall, yet symbolic of the mess the state is in.
Because Illinois has no current budget, the state does not pay lotto winners. Instead it sends the winners IOUs. Yesterday, two Illinois lottery winners filed a class action lawsuit over unpaid prizes.
Promises, Promises
Unpaid bills do not count additional promises that politicians seek. For example, Chicago Mayor Rahm Emanuel wants a half billion dollars from the state to shore up the Chicago school budget.
Where is that supposed to come from?
The list of “wants” is endless; the reality is “Illinois is flat out broke”.
When will multiple downgrades from Moody’s, Fitch, and the S&P hit the overall state, not just the city of Chicago?
Drowning in Red Ink
In a big understatement of Illinois’ problem, a Crain’s Chicago headline reads Illinois IOUs Growing Fast, Could Pass $8.5 Billion by Yearend.
Slowly but surely, Illinois government is beginning to drown in red ink, State Comptroller Leslie Munger said today, as the cost of the continuing Springfield budget war steadily worsens the already bad condition of state finances….
