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State budget crises

July 3, 2017 by Jeff (ILoveCapitalism)

These seem to be popping up. For decades, State public pensions have been under-funded and overly-generous. The bill is coming due. Bloomberg has a map:

Gray means nothing good. California, for example, has under-funded its pensions by $1 trillion – or $93,000 per household – which is worse than Illinois.

The big crisis of the moment is Illinois. They have not enacted a budget in 3 years, have $15 billion in unpaid bills, and a court just ordered them to make some large Medicaid payments they had been skipping. In consequence, the Democrat legislature has passed tax hikes – that the Republican governor has vowed to veto, at least for now.

Other states in crisis are

  • Connecticut, where the Democrat governor has signed an executive order to take control of State spending (and do service cuts) after the Democrat legislature couldn’t pass a budget.
  • Maine, where the Republican governor is threatening a government shutdown (and state of emergency) rather than accept another Democrat tax hike.

All of these States face downgrades of their bond ratings.

As to California: it already has some of the nation’s highest tax rates (13% top income, 7-10% sales taxes). With typical “progressive” insanity, CA is spinning on whether to do single-payer health care – a $400B idea that it can’t afford even today, and still less after California’s inevitable pension crisis hits.

Filed Under: Big Government Follies, California politics, Debt Crisis, Socialism in America, State Politics & Government Tagged With: Big Government Follies, California politics, connecticut, Debt Crisis, illinois, maine, Socialism in America, State Politics & Government, taxation is theft

CA and IL: worst credit ratings

July 28, 2013 by Jeff (ILoveCapitalism)

Just a reminder that, of all the 50 States (or 57-58 States, if you’re Obama), California and Illinois continue to have the worst credit ratings.

That means they’re the most financially ill-run States; the ones in the most trouble with debt. They have swapped spots in 2013, with California upgraded from A- to A and Illinois downgraded from A to A-. But they’re still the bottom two.

By the way, Rahm Emanuel’s duchy of Chicago is getting low on cash, as it faces rising debt and expenses. The next Detroit?

Filed Under: Big Government Follies, California politics, Liberalism Run Amok Tagged With: Big Government Follies, california, California politics, Chicago, detroit bankruptcy, illinois, Liberalism Run Amok, worst credit ratings

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