Taxpayer Bailout for Illinois?

Taxpayer Bailout for Illinois?

[media-credit name=" " align="aligncenter" width="300"][/media-credit]After giving away the store and the kitchen sink to the union bosses, Illinois Gov. Pat Quinn is looking for a federal taxpayer guarantee for the state's pension debt, the Wall Street Journal opines: Now that Chicago's children have returned to not learning in school, we can all move on to the next crisis in Illinois public finance: unfunded public pensions. Readers who live in the other 49 states will be pleased to learn that Governor Pat Quinn's 2012 budget proposal already floated the idea of a federal guarantee of its pension debt. Think Germany and eurobonds for Greece, Italy and Spain. Thank you for sharing, Governor. Sooner or later, we knew it would come to this since the Democrats who are running Illinois into the ground can't bring themselves to oppose union demands. Illinois now has some $8 billion in current debts outstanding and taxpayers are on the hook for more than $200 billion in unfunded retirement costs for government workers. By some estimates, the system could be the first in the nation to go broke, as early as 2018. Liabilities are also spiralling nationwide, with some $2.5 trillion in unfunded state pension costs. According to a paper released Thursday by the Illinois Policy Institute, the crisis will end up pitting states against each other as taxpayers in places like Tennessee, Texas, Virginia and Utah will be asked to subsidize the undisciplined likes of Illinois and California.

Wisconsin Reality vs. Illinois Gov. Pat Quinn's

Wisconsin Reality vs. Illinois Gov. Pat Quinn's "Reality Rendezvous"

Imagine what would happen in Wisconsin if they gave private sector employees the same freedoms. "Our rendezvous with reality has arrived."  That is what Illinois Governor Pat Quinn said this week as he unveiled his state budget.  Their economic slap in the face comes nearly one year after we took steps to get our fiscal house in order. As we were passing legislation requiring state employees and teachers to make modest contributions to their health insurance and pensions to help offset necessary cuts, Quinn and Democrats in Illinois passed massive tax increases. I told you then that our path, although a more difficult one, was the correct path to take.  Now, it couldn't be more clear that we were right.  We closed a massive $3.6 billion budget deficit without raising taxes and without massive layoffs. Illinois, meanwhile, is in even more economic peril because of  tax increases that clobbered their families and businesses.  To try to fix the mess he created, Governor Quinn is out with a budget that proposes the closing of numerous prisons, 60 state offices, laying off 1,100 state employees and cutting Medicaid by $2.7 billion. It's so bad that $8 billion in bills would still go unpaid and state worker pensions costs will rise by more than $1 billion.  Even faced with that, Quinn and Illinois democrats are refusing to tackle the issue, instead calling on "task forces" to be created to look into ways to reign in skyrocketing health care and pension costs.

Wisconsin Reality vs. Illinois Gov. Pat Quinn's "Reality Rendezvous"

Wisconsin Reality vs. Illinois Gov. Pat Quinn's "Reality Rendezvous"

Imagine what would happen in Wisconsin if they gave private sector employees the same freedoms. "Our rendezvous with reality has arrived."  That is what Illinois Governor Pat Quinn said this week as he unveiled his state budget.  Their economic slap in the face comes nearly one year after we took steps to get our fiscal house in order. As we were passing legislation requiring state employees and teachers to make modest contributions to their health insurance and pensions to help offset necessary cuts, Quinn and Democrats in Illinois passed massive tax increases. I told you then that our path, although a more difficult one, was the correct path to take.  Now, it couldn't be more clear that we were right.  We closed a massive $3.6 billion budget deficit without raising taxes and without massive layoffs. Illinois, meanwhile, is in even more economic peril because of  tax increases that clobbered their families and businesses.  To try to fix the mess he created, Governor Quinn is out with a budget that proposes the closing of numerous prisons, 60 state offices, laying off 1,100 state employees and cutting Medicaid by $2.7 billion. It's so bad that $8 billion in bills would still go unpaid and state worker pensions costs will rise by more than $1 billion.  Even faced with that, Quinn and Illinois democrats are refusing to tackle the issue, instead calling on "task forces" to be created to look into ways to reign in skyrocketing health care and pension costs.