Gosh. If you spend way way way more than you take in, borrow borrow borrow the rest, one day, you'll have a several billion dollar shortfall in the ole' state budget.
From the WSJ:
Illinois lawmakers were in disarray Thursday as they groped for stopgap measures to address a $13 billion deficit equaling nearly half of the state's general-fund revenue.
The state faces one of the nation's worst budget crises, spilled over in part from the broader national economic crunch, and its current bond ratings lag only California's. But the confusion in the legislature indicates that serious steps to fix state finances won't be taken until after the November elections—if then.
Illinois lawmakers have little appetite for drastic spending cuts. An income-tax increase proposed by Democratic Gov. Pat Quinn is going nowhere. Even temporary steps, such as borrowing to make pension payments, have stalled. Illinois is months late on many of its bills and has no plan for catching up.
The legislature may push the problem to the governor's office by granting Mr. Quinn emergency budget powers and adjourning Friday, about three weeks earlier than usual.
Yeah, baby! Talk about-cher' profiles in courage!
And they don't have a Reagan or a Bush to blame for it. The One is in the White House, and if he ponies up $20 billion or so to bail Illinois out, with no chance of repayment, then Katie-Bar-The-Door on Election Day.
Does sort of make one reconsider that definition of 'Red State'.
Tennessee, on the other hand, is grappling with a shortfall of about 100 million--a lot of money, but Democrat Governor Bredesen and the Republican-dominated legislature stoked away a bunch of cash during the good times. So now the argument is about if and how much of those funds to tap versus how much to cut. They'll get through it, and won't be adjourning early. It won't be pleasant, but everyone will survive.
Read more about the knock-on effect in Illinois at Doug Ross Journal.
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