«From Horrific To Catastrophic»: Sending Illinois Into The Financial Abyss
ZeroHedge, July 1, 2017
First Maine, then Connecticut, and finally, confirming the worst case outcome many had expected, Illinois entered its third straight fiscal year without a budget as politicians failed to agree on how to overcome the government’s chronic deficits, pushing it closer toward becoming the first junk-rated U.S. State.
The failure marked a continuation of the historic impasse that’s left Illinois without a full-year budget since mid-2015, and which, S&P warned will likely result in a humiliating and unprecedented downgrade of the 5th most populous US state to junk status.
The state remains without a spending plan, leaving it with a record $15 billion of unpaid bills as it spent over $6 billion more than it brought in over the past year, and with $800 million in interest on the unpaid bills alone. The impasse has devastated social-service providers, shuttering services for the homeless, disabled and poor. The lack of state aid has wrecked havoc on universities, putting their accreditation at risk.
Illinois can not afford to pay outstanding Medicaid bills. Medicaid is an incredibly important program for 25 percent of the state’s population,
The backlog of unpaid claims the state owes to managed-care companies directly, as well as to the doctors, hospitals, clinics and other organizations is crippling these providers and thereby dramatically reducing the Medicaid recipients’ access to health care.
Payments to the state’s pension funds, the state payroll including legislator pay, General State Aid to schools and payments to local governments — in some combination — will likely have to be cut.
By August Illinois will run out of money for key expenses for the first time since the stalemate began. That means school funding, state payroll, and pension payments could be affected. There won’t be enough money for these mandated or court-ordered payments.
Illinois Comptroller Susana Mendoza said, however, that payments to (wealthy) bond holders won’t be interrupted. Illinois hasn’t missed any bond payments and state law requires it to make monthly deposits to its debt-service funds.
Здешние политиканы, «эксперты», подконтрольные ЦРУ СМ»И» нахваливают псевдодемократическую, якобы процветающую Америку.
Те, кто любит «наших американских (государственных) партнеров», «забывают» о грязных, злых уродах США. О таких, как коварный и крайне опасный мошенник, расист, лжец, неофашист и убийца Дональд Трамп. И о таких, как порочный Конгресс, кровавые милитаристы США, нацистские ФБР — ЦРУ, лживые американские СМ”И”…
Арнольд Локшин, политэмигрант из США