In what state have the most CITIES declared Bankruptcy??
It’s rare for cities and municipalities to default on loans, and even rarer for them to declare bankruptcy. Since the Great Recession, however, bankruptcy or talks of it have become more commonplace in U.S. cities. Click through to find out which U.S. cities squandered away money and which ones had full-on financial meltdowns.
Desert Hot Springs
Mammoth Lakes
San Bernardino
Stockton
Vallejo
Orange County also filed for BK.
Several cities are also on the brink of bankruptcy, including Chicago.
Illinois is headed for disaster —
The state of Illinois is already bankrupt. Even with massive tax increases, there is no way the state can meet its pension obligations. The crisis will come when state officials acknowledge that fact and miss the first pension payments. Pensioners will meet in mass public protests, and the legislature will break into open warfare.
Chicago has spent two decades digging itself into a hole.
Back in 2000, the city had racked up $12.3 billion in debt, in current dollars; now, it owes $20.2 billion. Back then, the debt burden per person was roughly $4,400; these days, it's $7,500.
Even scarier is what Chicago owes to pensioners: $31.5 billion, up from $5 billion in 2000 .
Last year, Chicago's pension funds took in $900 million from the city and its employees and earned nearly $541 million in investment income, but the fund paid out more than $2 billion.
Chicago has less money set aside in its pension funds today than it did a decade and a half ago.
https://www.investors.com/politics/commentary...reliction/
Illinois is 2018’s least fiscally stable state
SPRINGFIELD, Illinois (Illinois News Network) — The Land of Lincoln is the most financially unstable state in the nation, according to new ranking by U.S. News and World Report.
The ranking of 2018’s most fiscally unstable states was conducted by McKinsey & Company, the global management and consulting firm. The report considered credit rating and state public pension liability to rank states on long-term stability. For short term, the report measured each state’s cash solvency and budget balance.
Illinois was 50th overall.
The state’s pension debt – commonly estimated at $130 billion, but measured as high as $250 billion last summer by Moody’s – was a factor. That debt load was cited by Moody’s and other creditors as a cause of the state’s near junk rating.
Rankings by short-term stability used the number of liquid funds in a state’s budget and how balanced the state’s budget is.
Illinois’ current budget that passed last July, despite Gov. Bruce Rauner’s veto, is $1.5 billion in the red, even with a $5 billion income tax hike, according to the Civic Federation.
Illinois has been one of the most fiscally irresponsible, fiscally mismanaged state’s for decades,” Gov. Bruce Rauner said of the report.
Rauner’s been at the helm of the state since January 2015.
“I can’t even find a year where we’ve had a truly balanced budget in this state,” he said.
Rauner’s budget battle with the Democrat-controlled General Assembly led to two years without a formal budget.
https://wqad.com/2018/03/12/report-illinois-i...ble-state/
It’s rare for cities and municipalities to default on loans, and even rarer for them to declare bankruptcy. Since the Great Recession, however, bankruptcy or talks of it have become more commonplace in U.S. cities. Click through to find out which U.S. cities squandered away money and which ones had full-on financial meltdowns.
Desert Hot Springs
Mammoth Lakes
San Bernardino
Stockton
Vallejo
Orange County also filed for BK.
Several cities are also on the brink of bankruptcy, including Chicago.
Illinois is headed for disaster —
The state of Illinois is already bankrupt. Even with massive tax increases, there is no way the state can meet its pension obligations. The crisis will come when state officials acknowledge that fact and miss the first pension payments. Pensioners will meet in mass public protests, and the legislature will break into open warfare.
Chicago has spent two decades digging itself into a hole.
Back in 2000, the city had racked up $12.3 billion in debt, in current dollars; now, it owes $20.2 billion. Back then, the debt burden per person was roughly $4,400; these days, it's $7,500.
Even scarier is what Chicago owes to pensioners: $31.5 billion, up from $5 billion in 2000 .
Last year, Chicago's pension funds took in $900 million from the city and its employees and earned nearly $541 million in investment income, but the fund paid out more than $2 billion.
Chicago has less money set aside in its pension funds today than it did a decade and a half ago.
https://www.investors.com/politics/commentary...reliction/
Illinois is 2018’s least fiscally stable state
SPRINGFIELD, Illinois (Illinois News Network) — The Land of Lincoln is the most financially unstable state in the nation, according to new ranking by U.S. News and World Report.
The ranking of 2018’s most fiscally unstable states was conducted by McKinsey & Company, the global management and consulting firm. The report considered credit rating and state public pension liability to rank states on long-term stability. For short term, the report measured each state’s cash solvency and budget balance.
Illinois was 50th overall.
The state’s pension debt – commonly estimated at $130 billion, but measured as high as $250 billion last summer by Moody’s – was a factor. That debt load was cited by Moody’s and other creditors as a cause of the state’s near junk rating.
Rankings by short-term stability used the number of liquid funds in a state’s budget and how balanced the state’s budget is.
Illinois’ current budget that passed last July, despite Gov. Bruce Rauner’s veto, is $1.5 billion in the red, even with a $5 billion income tax hike, according to the Civic Federation.
Illinois has been one of the most fiscally irresponsible, fiscally mismanaged state’s for decades,” Gov. Bruce Rauner said of the report.
Rauner’s been at the helm of the state since January 2015.
“I can’t even find a year where we’ve had a truly balanced budget in this state,” he said.
Rauner’s budget battle with the Democrat-controlled General Assembly led to two years without a formal budget.
https://wqad.com/2018/03/12/report-illinois-i...ble-state/
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