Illinois In Worst Fiscal Shape In Country

By aaroncynic in News on Jun 22, 2012 8:40PM

For the second year in a row, Illinois has the emptiest pockets in America. According to the Chicago Tribune, the Illinois’ deficit, now at $43.8 billion as of June of 2011, puts us at the lowest level of net assets in the country. That debt grew more than $6 billion from 2010, when the state was also at rock bottom in net assets with a $37.5 billion deficit.

According to a report released from the Auditor General’s office, the state has seen a steady increase in the deficit for seven years, from $15.4 billion in 2004 to $43.8 now. The General Revenue Fund has also run a large and increasing deficit since that time, bottoming out to $8.8 billion last year and slightly decreasing to $8.1 this year. The five states in the union running deficits are Illinois, New Jersey ($33.4 billion), Massachusetts ($22.8 billion), Connecticut ($14 billion), and California ($10.5 billion). Texas ($97.3 billion), Arkansas ($64.5 billion) and Florida ($50.4 billion) hold the top three slots in positive assets.

Illinois’ pension liability contributed to the deficit significantly. A study released by the Pew Center on the States shows the pension in Illinois was only 45% funded in 2010, also the lowest in the country, with a gap in funding of $76 billion. In addition, Retiree health care costs, funded at less than 1 percent, were at $44 billion. The unfunded pension liability at the end of FY 11 for Illinois is almost $83 billion.

According to the Tribune, a statement from Gov. Pat Quinn’s office said that the report from the auditor does not include steps his office has taken to put the state on “sound financial footing.” “We cannot fix decades-old problems overnight but we can take major steps to improve our finances.” Quinn’s office recently signed bills to lower Medicaid costs, which together with pensions account for 39 percent of general fund spending.