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Illinois Finances In Disarray

It’s kind of funny that the AP is reporting a story that has not been “news” for years to tax professionals. The state of Illinois is running out of taxpayer money, as its obligations exceed its revenue intake.  This is what happens when a state has been mismanaged for decades by incompetent Democrats: From CHICAGO (AP): 

The Illinois official responsible for paying the state’s bills is warning that new court orders mean her office must pay out more each month than Illinois receives in revenue.

Comptroller Susana Mendoza must prioritize what gets paid as Illinois nears its third year without a state budget.

A mix of state law, court orders and pressure from credit rating agencies requires some items be paid first. Those include debt and pension payments, state worker paychecks and some school funding.

Mendoza says a recent court order regarding money owed for Medicaid bills means mandated payments will eat up 100 percent of Illinois’ monthly revenue.

There would be no money left for so-called “discretionary” spending – a category that in Illinois includes school buses, domestic violence shelters and some ambulance services.

Is Illinois going to be the first state to become truly insolvent? Is Illinois going to file for bankruptcy? The situation is critical enough that we need keep an eye on it in the coming weeks and months.