Illinois Finances In ‘Massive Crisis Mode’ – Debt Bomb

Illinois in Financial Decline

“CHICAGO (AP) — The Illinois official responsible for paying the state’s bills is warning that new court orders mean her office must pay out more each month than Illinois receives in revenue.

Comptroller Susana Mendoza must prioritize what gets paid as Illinois nears its third year without a state budget.

A mix of state law, court orders and pressure from credit rating agencies requires some items be paid first. Those include debt and pension payments, state worker paychecks and some school funding.

Mendoza says a recent court order regarding money owed for Medicaid bills means mandated payments will eat up 100 percent of Illinois’ monthly revenue.”

Judges are out of control. The state will break the law no matter what they do. It’s also against the law in Illinois to run a deficit, not honor union contracts and not pay your bills.

Every welfare state ultimately becomes a ponzi scheme, relying on new payers to pay previous payers. And when it runs out of the new payers, the scheme collapses.

Dennis Prager, Left and Right Differences (via theerinater)
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This entry was posted in Crime, Darwin Award Nominee, debt, economy, government, health care, politics. Bookmark the permalink.

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