Things are potentially about to get even worse for Illinois as the state faces the plausible threat of bankruptcy.
According to The Fiscal Times, Illinois Governor Bruce Rauner came face to face with a “combative, Democratic legislature” on the terms of a revised, operating budget, but no resolution was made. On top of that, “the State Senate rejected a House-passed budget measure premised on a $7-billion revenue shortfall after Rauner threatened to veto it.”
You would think Democrats who claim to care about America would be more helpful to Illinois—especially given the $14.7 billion in unpaid bills the state owes and the $130 billion in unfunded, pension obligations. But Democrats actually have been perpetuating the problem. More details from Fiscal Times.com:
“State legislators also failed to approve a stand-alone kindergarten through 12th-grade education budget that was vital to the operations of the financially struggling Chicago school system, Reuters reported. A $15.7 billion bill to ensure schools open in the fall passed the Senate but was soundly defeated in the House.”
Illinois is a heavily Democratic state—one of the biggest in the nation. But now, in 2017, Illinois is on its way to submitting Chapter 9 bankruptcy and a state-wide collapse. Illinois Policy.org called out the main contributors to this pension issue:
“-Sixty percent of state pensioners retired in their 50s—many with full, pension benefits.
-Over half of state pensioners will receive $1 million or more in pension benefits over the course of their retirements. Nearly 1 in 5 will receive over $2 million in benefits.
-Almost 60 percent of all current, state pensioners can expect to spend 25 or more years collecting benefits—based on approximate, actuarial, life expectancies. Due to automatic, compounded, three-percent COLA benefits, those pensioners can expect to see their annual pension benefits double in size.
-The average career pensioner (retired after January 1, 2013, with 30 years of service or more) receives $66,800 in annual, pension benefits and will collect over $2 million in total benefits over the course of retirement.
-The average, career pensioner will get back his/her employee contributions after just two years in retirement. In all, pensioners’ direct, employee contributions will only equal six percent of what they will receive in benefits over the course of their retirements.”
This imminent, financial crisis has been due to years and years of poor governance of the state—starting in 2011 when Gov. Pat Quinn (D-IL) increased the tax rate. He did that to troubleshoot a pending “pension shortfall” and to “offset a $12-billion deficit to account for a $35-billion, state-wide budget.”
It didn’t work, and the state has been working tirelessly to reform its pension plans ever since.
Can we all just agree that Democrats are bad for America? I mean, the evidence is all there if everyone just opens their eye. Just look at what the Democrats did to Illinois.