Will Illinois File Bankruptcy

IncSmart Illinois (Small Business and Startups) - Illinois has been operating without a budget years.  The state has been forced to conduct business under court ordered spending at the same time running up a massive deficit.  Many state programs and agencies dependent on state aid, are in danger of losing money. Schools, universities, hospitals and police are facing cutbacks due to the massive pension crisis. The bond ratings are so low, the state is unable to raise money.  Bankruptcy is being floated.

Illinois has unpaid bills totaling $14.7 billion.  This debt is 40 percent of the state’s budget.  The democrats however is continuing to push for more government spending.  The state legislature had to enact a major tax increase to address the deficit of $12 billion. Puerto Rico, which earlier this year announced a restructuring of its $70 billion in debt through courts after negotiations with bondholders failed.  Illinois state's financial loss is the shrinking tax base. For the last three years, Illinois lost residents and the population is now lower than it was 10  years ago.