Illinois, after years of plundering and looting the public purse, now finds itself out of money and unable to even pay unemployment claims:
Gov. JB Pritzker has acknowledged there is not enough money in the state’s unemployment reserves. Just last month, the U.S. Department of Labor also warned that Illinois was one of a handful of states that would not be able to handle a surge of claims on its own.
As CBS 2 Investigator Megan Hickey reported, the federal government was already worried about Illinois’ ability to pay unemployment benefits before COVID-19, along with California, Massachusetts, New York, Ohio, and Texas.
In February, the Department of Labor issued a report saying the trust fund that Illinois uses to pay unemployment benefits had the fifth-lowest solvency level in the country.
“Employers hadn’t been paying enough money into the system in order to cover the claims that workers were claiming,” said Eliza Forsythe, a labor economist at the University of Illinois School of Labor and Employment Relations.
“Employers aren’t paying enough money.” Hmm, how strange, Illinois already has some of the highest tax rates in the country. Could it be that far left, anti-business policies, out of control crime, corrupt and incompetent government, and ultra-high taxes chasing businesses out of the state are causing the problem?
Nah. Another tax hike aimed at
the middle class and small business the “rich” is sure to solve the problem!
“I would love to know where it’s coming from, but as long as I get it, I kind of don’t care,” Cheele said. “But at the same time, I don’t understand – if our state is so broke, our taxes keep going up and they still have no money.”
Dollars to doughnuts this person will faithfully pull the lever for the same old Democrats in November with nary a whisper of protest.
And while Illinois is starting off from a *particularly disadvantaged position, Forsythe does not think any state is going to be able to handle this by themselves.
“No, I don’t think so,” Forsythe said. “Yeah absolutely, this is a really unprecedented situation.”
Forsythe agrees with Gov. JB Pritzker that ultimately the federal government will have to step in the fill the gap.
Trump is going to have to bail out Illinois, and probably California as well, since he will be attacked for “not doing his job of helping people” if these states go broke. Unfortunately, as we discovered during Hurricane Katrina, many citizens seem to think the president is a pseudo-king that is elected every four years, and they do not understand that the states are expected to be first responders in major disasters.
The Democrats, of course, are happy to spread this point of view.
By the way, in spite of being insolvent to the point where they can’t even pay unemployment claims, S&P has rated Illinois BBB-, Moody’s has them rated Baa3, and Fitch has them rated BBB. These are all investment grade ratings. Maybe it’s time to knock them down a few notches? CC/Ca seem like better ratings for this basket case of a state.