from State Rep. Bob Pritchard’s (R-Sycamore) weekly newsletter:
The Civic Committee of the Commercial Club of Chicago concludes that Illinois is insolvent and may be reaching a tipping point where it will be extremely difficult to reverse the tide of debt and budgetary shortfalls. Legal experts say the protections of the federal bankruptcy code are available to cities and counties, but not states.
So while a state can’t go bankrupt, we fit the classic definition: Illinois’ liabilities far exceed its assets, while we have an inability to generate enough cash to pay our bills.
To focus public attention on solutions, the Civic Committee is kicking off a campaign in major newspapers and on the internet (www.IllinoisIsBroke.com). They support what my House colleagues and I have been saying: balance the budget, cut spending, reform pensions and Medicaid, and stop borrowing.
As if to mock our suggestions, the Governor recently sold $3.46 billion in pension notes. The proceeds of the sale will go towards pension payments and $840 million will be used to help reduce the state’s unpaid bills backlog.
Meanwhile the Comptroller’s office reports it will have to direct $500 million or more each month from March to June to pay off our emergency short-term borrowing. Some financial help is coming from the release of FamilyCare money held up in a Blagojevich lawsuit –$400 million—and nearly $1 billion from the release of federal stimulus dollars.
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