Home Economy States Like Illinois Should Not Get a Federal Bailout for Bad Financial...

States Like Illinois Should Not Get a Federal Bailout for Bad Financial Decisions


Steve Balich Editors Note: States like Illinois, that have elected officials that promote socialism should not be allowed to force citizens that vote for responsible government to pay for their share the wealth socialistic legislation like the 12% raise for ASCME in Illinois. It should be real clear that under Illinois Socialism people who work for Government are in the upper class. Government Employees get above average pay, more days off with pay, Superior Medical Insurance, A defined benefit pension that increases every year, and a job for life.

I understand the need for taking care of employees, but States like Illinois take the care to the highest levels. The State can’t afford it so they want other States to pay for their terrible financial decisions. Under Socialism when people figure out they get paid no matter what, the question Why Work always comes up. So bailing out States like Illinois will result in other States following the bad financial decisions that resulted in the need for a bailout.

It is only logical that the terrible financial decisions made by people elected, be paid for by the people in the unit of government that gave them their authority. We the people are frustrated with high taxes, yet the majority of us seem to keep voting for those that want bigger government and more government control, which means more spending and taxes.

We citizens need to vote and bring people to the polls to put an end to this economic slavery, which places like Illinois are inflicting on the people.

U.S. Senate resolution warns against any federal bailout of state pensions

FILE - Tom Cotton

A U.S. Senator wants to send a message to states like Illinois that have accumulated large pension debts: Don’t look to the federal government for a bailout

A newly-filed resolution by U.S. Sen. Tom Cotton, a Republican from Arkansas, states that Congress should not be responsible for bailing out fiscally-irresponsible states.

“That it is the sense of the Senate that the Federal Government should take no action to redeem, assume, or guarantee any debt, including pension obligations, of a State; and the Secretary of the Treasury should report to Congress any negotiations to engage in actions that would result in an outlay of Federal funds on behalf of creditors of a State,” the resolution reads.

Rachel Greszler, a research fellow with the Heritage Foundation, said states are carrying trillions of dollars in estimated future debt.

“Some of those obligations are so large in states like Illinois, California, and Connecticut that it seems nearly impossible that they would be able to come up with this money,” she said. “They have anywhere between $28,000 and $48,000 per person in unfunded pension liabilities.”

She said there have long been state-level officials who say the federal government should help.

“States, including Illinois, have floated the idea of having the federal government back their pension debts,” she said, referring to former Gov. Pat Quinn’s 2012 budget, which proposed having future pension borrowing guaranteed by the federal government to lower interest on the loan.

Illinois’ pension debt has been estimated between $136 billion and $250 billion, by government officials and credit rating agencies.

The U.S. House of Representatives is set to vote on legislation that would allow for low-interest public loans to private pensions that could be forgiven, something Republicans have called a bailout of the plans.


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