SPRINGFIELD -- By most measures, Illinois is broke.
The state can't pay its bills on time. It is poised to
top the $3 billion mark in the amount of money it will
borrow this year to stay afloat. Programs are being
cut and there is talk of selling off assets to help
pay bills.
But don't expect the state to declare bankruptcy
anytime soon. It can't.
Individuals, businesses and even local governments
can file for reorganization under federal bankruptcy
laws. But, that doesn't cover state governments.
Experts say the main reason is that states can
adjust their financial situation in order to balance
their budgets.
"It's not like a corporation where they are
completely going to go broke. There always will be
some revenue coming in," said Elizabeth McNichol, a
state budget analyst at the Washington D.C.-based
Center on Budget and Policy Priorities.
Illinois can and is employing a number of financial
maneuvers to keep the state operating.
It is rolling over its bills into the next fiscal
year, which then brings the ledger books closer to
being balanced. It is delaying paying vendors, which
means the state is essentially borrowing money from
private businesses to continue meeting its payroll.
Gov. Pat Quinn will ask lawmakers in February to
approve an income tax increase, which also could
remove some of the red ink from the budget.
In the meantime, there is still money coming into
state coffers.
Along with revenue from income and sales taxes, the
state continues to collect fees for various services.
And, the federal government has propped up states
across the nation with billions in federal stimulus
dollars.
On Tuesday, Republican state Rep. Roger Eddy was
trying to balance the budget at the Hutsonville school
district where he serves as superintendent.
If school districts can't make ends meet, they can
be taken over by the state - the same state that is
putting many of them in tough financial straits by
delaying state aid payments.
"How ironic is it that they would have that power?"
Eddy said.
Eddy is among those who say Illinois' problems are
not going to change overnight.
The state will have to start prioritizing how it
taxes and spends. That could mean cuts to programs and
higher taxes.
"I think there's going to be a lot of pain," Eddy
said.
But it won't be resolved in bankruptcy court.
Senator Rutherford
is urging friends and constituents to visit his
Facebook Fan Page to comment on this controversial
plan.
By Christi Parsons
The nearly empty rural
facility is being considered, an Obama administration
official says. But obstacles remain, including a law
that bars the detainees from the U.S. unless they're on
trial.
Reporting from Washington -
A near-empty prison in rural Illinois has emerged as "a
leading option" to house terrorism suspects currently
held at Guantanamo Bay, Cuba, an Obama administration
official said Friday.
Read
More
Rutherford warns licensed professionals to keep current
on student loans
FOR IMMEDIATE RELEASE
November 10, 2009/rd
PONTIAC, IL – Illinois citizens who are
defaulting on their student loans are losing their
professional licenses to operate within the state, at an
alarming rate, according to State Senator Dan Rutherford
(R-Pontiac).
“Recent stories in the media have
highlighted the situation about our state’s licensed
professionals losing their accreditation because of
student loan defaults,” Rutherford said. “Of course the
economy has impacted most Illinoisans on some level, but
it is important that people stay current on their
student loans.”
Read More
