Margaret Thatcher once said that the big problem with socialist governments is that ‘they always run out of other people’s money’, and unfortunately we are witnessing this play out in a major way in the state of Illinois right now. At this point, the Illinois state government has more than 15 billion dollars of unpaid bills. Yes, you read that correctly. They are already 15 billion dollars behind on their bills, and they are on pace to take in 6 billion dollars less than they are scheduled to spend in 2017. It is the worst financial crisis in the history of Illinois, and State Comptroller Susana Mendoza sounds like she is about ready to tear her hair out in frustration…
‘I don’t know what part of ‘We are in massive crisis mode’ the General Assembly and the governor don’t understand. This is not a false alarm,’ said Mendoza, a Chicago Democrat. ‘The magic tricks run out after a while, and that’s where we’re at.’
It’s a new low, even for a state that’s seen its financial situation grow increasingly desperate amid a standoff between the Democrat-led Legislature and Republican Gov. Bruce Rauner. Illinois already has $15 billion in overdue bills and the lowest credit rating of any state, and some ratings agencies have warned they will downgrade the rating to ‘junk’ if there’s no budget before the next fiscal year begins July 1.
This post was published at The Economic Collapse Blog on June 18th, 2017.