Illinois Is Junk

[6souls]

IL is set to be the First State to receive a Junk Credit Rating from S&P Global

S&P Global Ratings has warned the agency will likely lower Illinois' creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year, increasing the amount the state will have to pay to borrow money for things such as building roads or refinancing existing debt.

The outlook for a deal wasn't good Saturday, as lawmakers meeting in Springfield for a special legislative session remained deadlocked with the July 1 start of the new fiscal year approaching.

The agencies are concerned about Illinois' massive pension debt, as well as a $15 billion backlog of unpaid bills and the drop in revenue that occurred when lawmakers in 2015 allowed a temporary income tax increase to expire.

"In our view, the unrelenting political brinkmanship now poses a threat to the timely payment of the state's core priority payments," S&P stated when it dropped Illinois' rating to one level above junk, which was just after lawmakers adjourned their regular session on May 31 without a deal.

https://www.mprnews.org/story/2017/0...-due-to-budget

[Xantavia]

I really wish they would have used our state as an example during the election about how well a businessman does in politics.

[Ragnus]

Sorry, the only exposure you get is from the GoP when they want their normal go to for an argument against gun legislation.

[Karbuncle]

Worthless neighbors. Damn.

[Dimmauk]

This is somehow Obama's fault.

[6souls]

Failed to pass their budget, again
https://www.bloomberg.com/news/artic...to-junk-rating

[TsingTao]

Yeah, waiting for the fallout on Monday. It's gonna suck.

This state is so fucked up they even managed to break the lottery. No more Powerball or MegaMillions, state can't pay out any winning ticket for what's left if it's over $25,000. Almost $700mil a year in revenue shot to shit...good thing we have plenty of money right?

Truly spectacular incompetence.

[tyven]

Good lord, is Chicago just a money pit or what?

[Zetanio]

DEFAULT
DEEEEFAULT
DEEEEEEEEFAULTTTTTTTTT

START THE CASCADE BAYBAY!

[archibaldcrane]

The Illinois Republican governor Rauner won in 2014 by less than 4 points, even though he won every single county in the state other than Cook (Chicago).

[TsingTao]

State budget passed, then vetoed by Gov, then overriden by both houses.

https://www.washingtonpost.com/natio...=.6e814152448c

Now we see if IL gets downgraded anyway. Without significant changes to pensions (at a minimum) I don't see how this does much positive for the future of the state. People were already leaving in droves...higher taxes won't make that any better.

[Zetanio]

They are getting downgraded. Count on it.

[tyven]

I can't believe pensions still exist in 2017

[TsingTao]

They are getting downgraded. Count on it.

Probably, but I want to delude myself for as long as I can. It's gonna suck.

I can't believe pensions still exist in 2017

I know, right? They're especially hard to change in this terrible state too.

[Melena]

I can't believe pensions still exist in 2017

They do in any sort of government or community safety job like fire and police. It's pretty sweet. Everyone in safety pretty much retires at 3% at 55 for every year they worked. Non Safety employee's like me, it's about 2.70% at 65 for every year you work. Both also have the option to dump money into a 457k

[tyven]

They do in any sort of government or community safety job like fire and police. It's pretty sweet. Everyone in safety pretty much retires at 3% at 55 for every year they worked. Non Safety employee's like me, it's about 2.70% at 65 for every year you work. Both also have the option to dump money into a 457k

what makes them so sweet is why they are so drastically underfunded. Defined Benefits are so reckless

[Zetanio]

Yeah, pensions are pretty terrible.

[Melena]

what makes them so sweet is why they are so drastically underfunded. Defined Benefits are so reckless

It's not so much that as it is Unions and state senators that get backed by them use funny math and completely unsustainable growth projections to minimize employee's out of pocket pension expenses. Every paycheck (every 2 weeks) my contribution is 88 dollars and change. County I work for pays just under 830 dollars.

[tyven]

It's not so much that as it is Unions and state senators that get backed by them use funny math and completely unsustainable growth projections to minimize employee's out of pocket pension expenses. Every paycheck (every 2 weeks) my contribution is 88 dollars and change. County I work for pays just under 830 dollars.

Jesus. Defined Benefit plans in the public sector have GOT TO GO

[Melena]

Jesus. Defined Benefit plans in the public sector have GOT TO GO

Ehh instead of stamping them out, just fucking fix them. Obviously as a beneficiary I'm going to take advantage of it, but if my union came back and said you now have to start contributing 200+ a check instead of 80 a check, i'm not going to cry. All they are now is 401k's with a guarantee as that's what they are essentially using to fund them. CALPERS, one of the biggest pensions in California is underfunded in part because they keep insisting a 7% growth rate is going to happen, so employee's don't need to contribute as much. If 7% was such a given, everyone would be dumping their fucking money in it.