Tags: illinois | budget | backlog | spending | term | limits

Illinois Financial Crisis Deepens: $14.6 Billion in Unpaid Bills

Image: Illinois Financial Crisis Deepens: $14.6 Billion in Unpaid Bills
(AP)

Tuesday, 27 Jun 2017 10:14 PM

A standoff in Illinois between its GOP Gov. Bruce Rauner and Democratic Speaker of the House Michael Madigan over spending and term limits has left the state without a budget for two years – and an unpaid backlog of $14.6 billion, the Wall Street Journal reported.

A fiscal train wreck could get even worse, the Journal reported, with billions of dollars in road projects scheduled to grind to a halt on July 1, the start of the new fiscal year, the newspaper reported.

At this dismal point, however, some social-services agencies have given up on receiving state funding, and others have closed entirely, leaving some rural communities without mental-health clinics, domestic-violence shelters and drug-treatment clinics, despite an opioid crisis gripping some towns downstate, the Journal reported.

And at Eastern Illinois University, state funding has taken a $53 million hit as average funding levels have steadily declined over the last five years the Journal reported. Its enrollment hit a peak less than a decade ago by 12,000; it dropped to 7,400 last fall.

The crisis has apparently triggered a population exodus as well, the Journal reported; Illinois has lost more residents than any other American state for the third year in a row, with 90 percent of the state’s counties seeing a drop in population, shrinking the state’s tax base.

In 2016, a net of 37,508 people left, according to census data, putting the population at its lowest in nearly a decade.

"Right now, our state is in real crisis," Rauner declared last week ahead of a special legislative session that's underway, the Journal reported.

Any solution state lawmakers come up with will need a three-fifths legislative majority to pass, the Journal reported; S&P Global Ratings warned it could lower the state’s rating to junk as early as this week if it doesn’t pass a budget.

© 2017 Newsmax. All rights reserved.

 
1Like our page
2Share
Newsfront
A standoff in Illinois between its GOP Gov. Bruce Rauner and Democratic Speaker of the House Michael Madigan over spending and term limits has left the state without a budget for two years – and an unpaid backlog of $14.6 billion, the Wall Street Journal reported.
illinois, budget, backlog, spending, term, limits
305
2017-14-27
Tuesday, 27 Jun 2017 10:14 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved