Illinois: Don’t Look Now, But. . .

[Valin]

Power Line:

 

Steven Hayward

8/30/12

 

 

Quote:

As the national debt crosses the $16 trillion mark some time in the next few weeks, let’s not forget that this isn’t the whole story as far as public debt is concerned. The 50 states have a cumulative debt of about $4.2 trillion. California is the worst, naturally, with total outstanding debt of $617 billion. Illinois, whose debt rating was downgraded yesterday by S & P, ranks fifth, with $271 billion in outstanding debt, along with an unfunded public pension liability of $83 billion (though likely much higher, as explained in this post a few days ago). Cory Eucalitto of State Budget Solutions thinks the total unfunded pension liability of the states may be another $4 trillion.

 

 

(Snip)

 

The problem of failing U.S states is the unspoken issue in this presidential campaign. If Obama is re-elected, look for Obama to demand a bailout of states to be part of any budget compromise with Republicans. Liberals simply can’t let the Blue State model fail.

 

(Snip)

[Valin]

If States Were Treated Like Corporations

John Steele Gordon

08.30.2012

 

Standard and Poor’s has downgraded Illinois’s credit rating, from A+ to A, with a negative outlook. It sited the accumulated $44 billion in budget deficits over the last five years as one reason. Illinois has a balanced budget requirement in its constitution, so how did it run five years worth of unbalanced budgets? Easy, it cooked the books because, unlike corporations, it doesn’t have to conform to Generally Accepted Accounting Principles or have its books certified by an independent authority.

 

(Snip)

 

One wonders why corporations are held to a greater degree of scrutiny and more rigorous rules than are states like Illinois. After all, is there a corporation in the country (or even the world) that has seen two of its last thee CEO’s go to jail (and four of its last nine)? That’s the record for Illinois governors.

 

Also see Time to Occupy State Pensions?

Walter Russell Mead

6/25/12

[clearvision]

I don't like that Texas debt. Don't hear much about it. I assume most is for roads and such, but still.

[Valin]

I don't like that Texas debt. Don't hear much about it. I assume most is for roads and such, but still.

 

Just say to yourself...It could be Ill., Ca..