Illinois which has some of the highest entitlements in the Country continues to prove why these plans do work in the long term. Simply said, you cannot keep borrowing money to give away when there is no way in sight to repay those loans in the future, especially when Businesses are leaving and there is very little in the works to bring in new industry. The only way the state can raise it's revenue will be to raise taxes, unless it makes some hard decisions and begins to cut from it's budget.
Bloomberg News reports that Illinois is faring poorly when compared to some foreign governments not known for solid financial management. Not only is Illinois tied with California for the worst credit in the nation, but Bloomberg found that Illinois recently had to pay a higher interest rate to borrow money than Mexico, Portugal and Peru. In less than two years, Illinois's credit rating dropped eight times, and there warnings that the state could receive another drop soon.
"Moody’s Investors Service changed the outlook on the state’s credit rating to negative from stable, which may indicate a cut will be made in grades affecting $25 billion of A1 rated general-obligation bonds. Moody’s cited the state’s failure to take steps to correct a “structural budget imbalance” and pension finances."
Posts
I encourage you to attend the Vermilion County board meetings. Tonight the budget was passed for the upcoming new fiscal year. The finance committee meets the first Monday of every month at 5 p.m.
ReplyDeleteI've been thinking about it. I heard they just approved the 44 Mil Budget. I've been trying to get up to speed on Danville, Vermilion County is next on my list. How are you involved? Do I know you?
ReplyDelete