State Financial Crisis

An article in the Springfield Journal Register on December 7, 2006 chronicles the latest in several reports of impending financial doom for Illinois. This article details a new report by the Civic Committee of the Commercial Club of Chicago, an organization of business executives. This study calculates Illinois state government debt at almost $106 billion and makes recommendations to slash costs and increase taxes to avoid “an impending financial implosion.” The report says the state needs an additional $5.9 billion next year just to catch up on pensions and health insurance for future employees and retirees and to deal with a backlog of Medicaid payments. Naturally the governor’s office welcomes the report but dismisses it because they were not involved in the development of the report and therefore it is based on flawed data.

This is just one stronger signal that Illinois needs to develop a strong bi-partisan group to deal with the impending financial disaster looming. Efficiencies and other reductions proposed by the Governor will not be enough to solve this crisis. Additional revenue will also be needed.

You can read the article and download the entire 56 page report at http://www.sj-r.com/ and clicking on the December 7, 2006 issue or at www.civiccommittee.org/initiatives/StateFinance/FacingFacts.pdf