Illinois continues to flounder financially


The following quotes are from an article published in the Peoria Journal Star on June 8, 2010, page B5. The headline is “Moody’s Investors Service cuts Illinois’ bond rating.”

Springfield—Illinois’ bond rating has been cut a notch by Moody’s Investors Service as a new report shows state revenues continue to slide and the pile of unpaid bills continues to grow. (According to the same article, that unpaid bills backlog is now over $5 billion. The State does NOT pay its bills!—my addition)

Moody’s cut Illinois’ rating on general obligation bonds from Aa3 to A1, blaming state government’s failure to come up with a permanent solution to its financial problems. Instead, lawmakers (the General Assembly—my addition) relied on a series of one-time fixes (which fix nothing!—my addition) to cobble together a spending plan. (A plan that is in obvious VIOLATION of the Illinois Constitution!—my addition)

‘This failure underscores a chronic lack of political will (Duh!—my addition) that indicates further erosion of an already weak financial position.’ Moody’s said in an opinion about the state’s credit rating.

The report said the state’s credit rating is further threatened by its growing debt burden, large unfunded liabilities for pensions and retiree health benefits, the disparity between spending and revenue (a 13 billion dollar disparity!—my addition) and the decision to simply put off paying bills. (Also, the decision to ignore the problem desperately hoping it will somehow magically disappear. Government decision making at it finest!—my addition)

‘The legislature’s failure to enact recurring budget-balancing measures (as required by the Illinois constitution!—my addition) is consistent with recent years, when infighting between the executive and legislative branches caused budget delays and allows both the erosion of the state’s finances and the widening of severe pension funding gaps.’ The report said. ‘The longer the solutions to the state’s challenges are deferred, the more difficult they will become to implement.’” (Duh!—my addition)

“Also Monday, the General Assembly’s Commission on Government Forecasting and Accountability issued a report showing revenues in May continued to drop compared to last year. Most of it was because federal imbursements to the state dropped from what they were in May 2009.” (The infamous stimulus plan to spend money the federal government did not have? One debt ridden government giving money to another debt ridden government to delay the inevitable?—my addition)

“Personal income taxes were also down again, indicating a still-weak economy. Sales taxes actually went up by $6 million compared to May last year, but for the year they are down a ‘disastrous’ $493 million according to the COGFA (Commission on Government Forecasting and Accountability—my addition) report.”

Fortunately, there is a solution to the State’s economic dilemma. Unfortunately, it seems the General Assembly and the Governor do not have the political will to implement the solution.

The solution:

The first criterion is: ABSOLUTELY NO money will be spent on any NEW program. It is the height of folly to spend money on new programs when there is not sufficient money to spend on already existing programs.

The second criterion is: Set the priorities for State spending from the HIGHEST priority to the lowest priority. One being the highest. 5000, or whatever the last priority is, being the lowest.

The third criterion is: Allocate money from the highest to the lowest priority to meet the needs of each priority until the estimated money runs out. If the allocations run out at the 3,450th priority, cut all of the less important priorities out of the budget.

The fourth criterion is: Adjust the allocations as needed, if needed. If more money needs to go from some higher priorities to lower priorities or money needs to be taken from lower priorities to be allocated to higher priorities, make those needed adjustments.

The fifth criterion and last criterion as well as the most important criterion is: Obey the Constitution of the State of Illinois. “Appropriations for a fiscal year shall not exceed funds estimated by the General Assembly to be available during that year.” This is the TARGET! If that means cutting 13 billion dollars from the budget, then cut 13 billion dollars from the budget.

Until the State actually decides to work with a true, accurate budget, nothing will be solved. The State will continue to go further into debt, the State will continue to stiff selected entities by NOT paying its bills—deadbeat government, and the State will continue to lust after MORE of OUR money believing that they are MORE capable of spending OUR money than we are! Revenue IS NOT the problem! SPENDING IS THE PROBLEM.