Serious Topic, Humorous Headline
Stumbled across this headline whilst scanning the news.
Illinois governor calls for pension fix, offers no plan
Article mostly covers Illinois Gov Quinn talking about the state's underfunded pension plan. To be fair to the Gov, even though he didn't offer a plan, he did endorse a bill addressing the issue. Here are a few key quotes.
Illinois state pensions are in the red by a staggering $97 billion, more than $20,000 for every household in the state. The pension systems have the lowest level of funding of any U.S. state at 39 percent.
While the state is supposed to have a balanced budget requirement, Illinois has delayed paying its bills. The state has an estimated $9.3 billion in unpaid bills, of which 40 percent are for basic health services such as care for the poor.
The slow bill payment has been going on for a few years now. A little math puts Illinois' unpaid bills at roughly $2000 per household. Gotta wonder how much longer this can continue.
On the 'truth in labeling' front, the state's pre-two-letter abbreviation, ILL, also describes its financial status.
Several other choice bits in the Reuters piece if you're a gov't budget, public pension, or muni-bond wonk.
Fool on! Russ