The next Stockton? Illinois’ runaway debt affecting education, infrastructure
M. Spencer Green, Associated Press
Taxpayers in Illinois, home to the most underfunded pension system in the U.S., are starting to feel the sting of mismanaged debt as the poor condition of its public infrastructure becomes critical, according to the a recent report from the state’s budget task force.
More than 15 percent of Illinois’ 26,000 bridges were “structurally deficient or functionally obsolete,” in 2010, according to the report.
Check out more: These 9 states have dangerously underfunded pensions
The state cut it’s K-12 education funding by 3 percent from FY 2012.
“Illinois’ past fiscal choices and future threats challenge the state’s ability to meet its population’s basic needs, let alone accommodate future growth,” the task force said in the report. “Infrastructure is deteriorating. Education is threatened. Public safety, public health, and care for the needy all are at risk. Taxpayers and the state’s competitiveness are also at risk.”
The state has been underfunding its pension system since the early 1980s, according to the report. The result is an estimated $85 billion in unfunded pension liabilities, making it the most underfunded system in the country.
"Illinois’ aging and deteriorating infrastructure is in urgent need of immediate repairs to meet basic standards of public safety,” the task force said in the report. “Over the next several decades, Illinois’ infrastructure needs will likely exceed $300 billion, yet the state does not have a comprehensive plan to address this critical need.”
The task force called for immediate decisions on the state’s financial situation. In the report, the group suggests “spending cuts and revenue increases” to balance the budget.
- 4 reasons why you shouldn't shop on Black Friday
- Our complete guide to Black Friday, Cyber...
- These two things are helping California's...
- Immigration reform will boost the economy,...
- Adults expect to spend $720 on gifts. Here's...
- 5 ways to talk about money with your family...
- Working on Thanksgiving Day? Here's why most...
- 3 Reasons holiday shoppers will spend cautiously
- Obama immigration plan good, not great... 13
- Working on Thanksgiving Day? Here's why... 12
- Immigration reform will boost the... 7
- Thanksgiving trumps Black Friday for deals 4
- Facing health law hikes, consumers mull... 4
- US stocks inch further into record... 1
- 3 Reasons holiday shoppers will spend... 1
- Millions expected to shop on Thanksgiving 1