Illinois finances a “mounting crisis”

October 7, 2009

Mike Flannery reports on the dire fiscal situation in The Land of Lincoln:

The State of Illinois’ pile of unpaid bills has grown to a record-breaking $3 billion. Comptroller Dan Hynes said Tuesday it’s never before been this bad at this point in any previous fiscal year…

The comptroller reported corporate income tax receipts down $77 million for July through September; sales tax receipts, down $244 million; personal income tax receipts, down $251 million.

One result: the typical creditor must now wait three months to be paid by the state, compared to a two-month wait at this time last year.

New York is also facing more budget cuts. One wonders if more states will eventually be forced to follow California’s lead and issue IOUs.

Comments

The fed gov’t is broke but it spends more anyway while the state gov’t is broke but can’t call on imaginary funds. It’s just not fair!

The capcha for this posting was quite appropriate – TOAST

Posted by CB | Report as abusive
 

I google/bing/yahoo layoffs every few days to see what is going on around the country. Over the past few weeks it has been local and state government agency layoffs that are reported in the news.

Some states have tried tax increases but they don’t seem to be raising revenue. Like a used orange, the taxpayer has been squeezed dry which leads me to the thought ‘what happens if the governments effort to reflate housing prices worked?’ Say the local tax assessor determined that your house went up in value next year by virtue of tax credits, low mortgage loans and foreclosure
prevention programs. Such an increase puts no more money in the typical homeowners depleted pocket but would raise
property tax assessments. Think of a retired person whose
interest income has been slashed, who gets no COLA from social security and who gets a 10 percent increase in their property tax. Thanks a lot Bernanke!

Posted by sangellone | Report as abusive
 

The simple and quite obvious solution for this entire “recession” problem; is for each and every State of our great (and once powerful) Country… LEGALIZE MARIJUANA ! Please comment.

Posted by CougarWitStyle | Report as abusive
 

Maybe illinois could raise money by auctioning off govt offices…. Bet they could get a good price for a senate seat.

Posted by Andrew | Report as abusive
 

I assume Hynes’ numbers are correct, but remember, he’s not a disinterested public servant. He’s running for governor so his announcement has a strong political tinge.

Posted by john winkler | Report as abusive
 

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