By David Stanczak
How broke is Illinois? Let me count the ways.
Madiganistan (f/k/a the State of Illinois) is so broke that its bonds were just downgraded for the 8th time in 8 years. It’s so broke that the next downgrade, anticipated around July 1, will reduce its bonds to junk status, which would prevent many institutional investors from buying them and increase the cost of borrowing even further. It’s so broke that by the end of this month, the state will owe about $800 million just in interest and fees on its unpaid bills. It’s so broke that the unpaid bills amount to almost 40% of its operating budget. It’s so broke that, in the absence of some reform, the state is getting further in debt to the tune of at least $10 million dollars A DAY.
The big item in the news is the lack of a budget for 2 years. But bad as it is, the lack of a budget is not the problem. Most of Madiganistan’s financial deterioration occurred during a time when Democratic majorities in the General Assembly passed budgets we couldn’t afford, and Republican and Democratic governors signed them. These budgets spent more than the state had to spend, avoided any pension reform (which effectively grew the debt), and kicked the debt can down the road. Governor Rauner, has thus far become a curb, turning that street they’ve been kicking the debt can down into a cul de sac.
The key to turning things around is not just any old budget that makes no reforms but raises taxes. We did that in 2011 and the result was the biggest outflow of humanity since the Berlin Wall came down. People who can will leave the state rather than throwing more money down an even larger rathole. The estimate of the price tag on the tax increase voted by the Senate last month was about $1,400 per family, with nothing to reform pensions or attract business; in fact, the tax bill included a tax on people for the “privilege” of starting a business in the state and adding to its tax base.
Tribune columnist John Kass coined the term Madiganistan. Under the circumstances, I believe that shouldn’t just be a nickname, but the state’s actual name, and I’d sign a petition to do just that. If we can’t change reality, we can at least change the state’s name to reflect reality. The petition would at least be a concrete method of showing the public’s increasing displeasure over its “governance.” It’s either that or torches and pitchforks.
David Stanczak, a Forum commentator since 1995, came to Bloomington in 1971. He served as the City of Bloomington’s first full-time legal counsel for over 18 years, before entering private practice. He is currently employed by the Snyder Companies and continues to reside in Bloomington with his family.
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