Kirk Releases Report On Illinois’ Debt Crisis

CHICAGO (WBBM) — Senator Mark Kirk says Illinois can forget about federal assistance, if it goes to Congress saying it’s broke and needs a bailout.

WBBM Newsradio’s Bob Roberts reports that Kirk has released a report showing that Illinois state government is teetering on the edge of insolvency.

The report shows the state’s debt is so massive that it’s the equivalent of $78,000 per household.

LISTEN: WBBM Newsradio’s Bob Roberts reports

The report’s author – venture capitalist Henry Feinberg – says those debt levels are unsustainable. He says that, if Illinois were a privately-owned business, its auditors would declare it insolvent.

“Can Illinois go bankrupt? By law, it cannot. However, does it have all the symptoms of bankruptcy? Absolutely,” he said. “Illinois’ political leadership has ignored the obvious in recent history and, as a result, has plunged Illinois into a self-perpetuating destructive cycle of debt.”

His report says Illinois already has kicked the can down the road so often during the budget process, that when broken down by household, the state’s debt is twice that of Indiana, Iowa or Missouri and three times that of Wisconsin or Michigan.

He also says the state has started sliding down the same chute as desperately indebted European nations like Greece.

Feinberg added that the state’s worsening credit rating also hurts the credit ratings of local government bodies that have no problems of their own paying bills.

Feinberg says that the end result is that every unit of local government ends up paying more in interest, which means higher taxes and drives people and businesses to move elsewhere.

Kirk said Congress has already signaled it won’t bail out insolvent state governments.

  • Jim

    WOW, this is shocking news! Well not really with Quinn as governor (not making anything better) and unions making bank in this state. Killing the unions is the only way this state has a chance…

  • g-man

    Gotta love them Democrats–Always giving the welfare cheats more money and taking more money away from the working people—So let Obama raise our taxes and give away more free money to the do nothings while we tax the workers more money —Didn’t Quinn raise the state income tax to take care of this ??????? Thats right—thats the Democratic way—just raise the tax and do nothing to cut back on the waste

  • justforfacebook

    Why again are we blaming the Democrats… First of all it WAS the REPUBLICANS who caused the financial crisis… Second Illinois has been under Republican ruled 26 of the last 31 years, and only now, when the whole country is in crisis, Illinois is supposed to magically be solvent… It was the Republicans who continued to spend on while collecting minimal taxes on businesses… Finally comparing Illinois’ state debt, to states with lesser population is completely misleading, and down right irresponsible representation of the problems… Beside Kirk is a republican, why would he ever say a Democrat was doing well in this state…

    • OutofControl

      Get it straight stooge! Democrats have been running the state for many moons, Governor seat aside. The Senate has been under the firm grip of the Democratic party for 25 of the last 36 years, the House? Try 32 of the last 36 years.

  • gpc

    Justforfacebook: you are wrong—the Democrats have been in firm rule in Illinois since the early 90s. You must also be a politician as only a politician would attempt to defend the indefensible scam that the government of Illinois has put over on its constituents (notice there is no shortage of money for politicians). Finally, try to actually THINK about what you are saying. Comparing PER HOUSEHOLD debt is perfectly accurate–there is no defense for what the so-called leadership has done to this state.

  • Wolf

    Illinois is insolvent just like most of the US …the reason is clear look at the massively bloated public sector and their fraudulent multi-millionaire pension scam…we cannot be spending $7 Trillion annually nearly 50% of GDP and considering that the public sector pensions are under funded by over $3 Trillion …this corruption is setting the stage for the final collapse of the US…

  • mohammedbinawad

    Question: how many of Illinois’ manufacturing jobs have been exported overseas.
    I remember Cicero was a booming town with factories from the west end to the east end . From Roosevelt to 18th street, what happened? Those worker paid Illinois’ and federal taxes. Since you brain are pretending to know what is causing, answer my simple mindless inquiry.

  • Chicago Daily Observer » Blog Archive » Kirk: State is Nearing Insolvency

    […] Kirk Releases Report On Illinois’ Debt Crisis [CBS Chicago] […]

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