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News Link • Illinois

Illinois Hopes to Fix $134 Billion Pension Shortfall By Issuing More Debt

•, By Tyler Durden

Now, the latest Democrat failing to understand simple math, and that the answer to fixing a debt problem is not more debt, is billionare Illinois governor J.B. Pritzker.

Pritzker is said to be preparing his first address on the state's budget for Wednesday, where he will address his desire to issue $2 billion in bonds in order to raise cash for the state's horrifically insolvent retirement system. This is the same tactic that the state tried in 2003 which, of course, failed miserably. All the while, in the years following 2003, Illinois' credit rating has moved closer and closer to junk with the state just one notch above the embarrassing level.

Pritzker's deputy governor, Dan Hynes, thinks that the bond sale might be a way for the government to shirk its annual contributions to the funds, which is what happened 16 years ago after Governor Rod Blagojevich's $10 billion debt sale. After the 2003 debt sale, the state failed to make sufficient annual payments into pension funds from 2005 to 2008, which added nearly $12 billion to the state's obligations.

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