Illinois Financial Mess

We know that most cities, counties and states have spent way too much money over the past few decades. When credit was easy and consumers were unstoppable....many asked how the party could EVER end??

Of course today we know it has ended.

Earlier this week we posted about the coming bankruptcy of Los Angeles. Over the past few years we have posted about the looming disaster coming for California.

Today we have growing revelation that the state if Illinois is in SERIOUS trouble....and this trouble could come to a head by June 10.

Illinois lawmakers were in disarray Thursday as they groped for stopgap measures to address a $13 billion deficit equaling nearly half of the state's general-fund revenue.

The state faces one of the nation's worst budget crises, spilled over in part from the broader national economic crunch, and its current bond ratings lag only California's. But the confusion in the legislature indicates that serious steps to fix state finances won't be taken until after the November elections—if then.

Illinois lawmakers have little appetite for drastic spending cuts. An income-tax increase proposed by Democratic Gov. Pat Quinn is going nowhere. Even temporary steps, such as borrowing to make pension payments, have stalled. Illinois is months late on many of its bills and has no plan for catching up.

Now check out how this article ends;

Illinois Comptroller Daniel Hynes said in his April report that the state's cash position for the quarter ending June 30 "looks exceedingly difficult." By June 10, Illinois must repay $1.75 billion, plus interest, in short-term borrowing.

Meanwhile, the state still owes billions of dollars to hospitals, universities, social-service providers and others. Mr. Hynes said the state's backlog of unpaid bills probably will exceed $5.5 billion at the end of June.

"Eventually, many providers of essential state services may be unable to continue their operations at current levels, and those vulnerable segments of the population to whom they provide services will suffer the consequences," he wrote.

See it here; http://online.wsj.com/article/SB10001424052748703686304575228582377071698.html?mod=WSJ_article_LatestHeadlines

Of course if we have California and Illinois bouncing checks, slashing pensions to police and cutting welfare all at the same time...it is a recipe for chaos...which is currently being foreshadowed in Greece.