Illinois is falling further into debt because of pensions. Now they have gone as far as to borrow money to pay government employee pensions.
www.howestreet.com
Illinois politicians are at it again. They're borrowing from the future to make state pension contributions today.
In early January, while everyone was busy watching the nasty campaign commercials, the State of Illinois pulled an end-run on the budget process. On Jan. 7 the state sold $3.5 billion of "pension obligation notes." In simple English, the state borrowed money to finance the state's contribution to its five retirement systems.
In November 2009, the state's Pension Modernization Task Force sent its recommendations to Gov. Quinn. The Task Force concluded that Illinois' unfunded pension liability exceeds $61 billion! And that number is growing exponentially(Note: Projections have it at $89 billion by the end of the fiscal year).
Illinois now has public debt of more than $130 BILLION. Unlike the federal government, our state cannot simply create new money to pay its bills. At some point -- and that point is very near -- investors will no longer be willing to lend money that cannot be repaid.
It's amazing that the Fat Pat Quinn, abortion loving democrat, will probably get voted in again...Illinois is such a liberal state; they would rather have a liberal in office that ruins us financially (like Obama federally), than have a fiscally conservative republican in office.
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