Illinois’ finances are in dire straights.
Some fear the state is a hair’s breath from (gasp!) bankruptcy.
"We would like all the stakeholders of Illinois to recognize how close the state is to bankruptcy or insolvency," Laurence Msall, president of the Civic Federation, a fiscal
watchdog in Chicago told Crain’s Chicago Business.
Bankruptcy is defined as an inability to pay debts out of current assets, and it’s no secret that Illinois can’t pay its bills. The latest count puts Illinois’ unpaid bills at
around $5 billion – a contentious fact among the state’s gubernatorial hopefuls.
This has occurred from decades of corruption as well as funny accounting. The state of Illinois, like most states, mandates a balanced budget. Through a series of budget tricks the legislature has run a deficit through a series of budget tricks.