Illinois as Deadbeat

Another day goes by, another failure of progressive economics is made painfully obvious. In this case, we’re talking about the state of Illinois and its inability to make payments for Medicare and its Lottery. From the Fox Business news story:

Illinois will not meet a court-set deadline Tuesday to increase spending on backlogs of Medicaid payments, pushing the problem off until the end of the month as the state’s unprecedented budget impasse is on the verge of entering its third straight fiscal year.

I thought that proud progs thought that we should give “free” Medicare to everybody? Why don’t they just steal raise taxes some more?

Illinois owes Medicaid providers $2 billion for care provided to more than 3 million people — a small sum compared to the state’s total unpaid bill of $15 billion, or 40 percent of Illinois’ operating budget. After failing to pass a spending bill for two straight fiscal years, the state has been functioning on appropriations since 2015.

Illinois can’t pay 40% its budget? Perhaps they should spend less? Don’t tell that to a Democrat.

Failure to strike a budget agreement by the end of the state legislature’s annual session on May 31 resulted in a critical credit downgrade for the country’s fifth largest state to Baa3, the lowest of any state and only one level above non-investment grade — also known as junk.

I wonder what Illinois is offering as an interest rate on its junk bonds? I sure as hell won’t accept a measly 4.4% from a 10-year Illinois bond.

Additionally, the state currently has more than $250 billion in unfunded pension obligations, annual payments of which could be cut if a deal isn’t struck — a scenario that Moody’s warned would be a negative credit event for bondholders.

I’m sure that the Democrats in the Legislature have $250 billion hiding somewhere. The capitalist neo-kulak pigs just need to pay up.

The state legislature’s special session begins Wednesday and will take place over 10 days. The impasse between the Democratic-controlled legislature and the Republican governor has paralyzed the state so severely that Gov. Rauner even compared Illinois to a “banana republic” earlier this month because it cannot manage its finances.

Yeah, I’d say banana republic is a good description. Venezuela isn’t doing so hot these days.

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