This Could Be The First State In US History To Declare Bankruptcy

Illinois is one of the few states that oppose President Trump!

We all know that the so-called sanctuary cities could lose the federal funding and so could Chicago and the state of Illinois!

But their liberal logic could give them something that is even worst!

Thanks to wonderful left-wing policies, the state of Illinois is on track to become the first state in history to go bankrupt.

According to CBS News:

A financial crunch is spiraling into a serious problem for Illinois lawmakers, prompting some observers to wonder if the state might make history by becoming the first to go bankrupt. At the moment, it’s impossible for a state to file for bankruptcy protection, which is only afforded to counties and municipalities like Detroit.

Chapter 9 bankruptcy protection could be extended to states if Congress took up the issue, although Stanford Law School professor Michael McConnell noted in an article last year that he believed the precedents are iffy for extending the option to states. Nevertheless, Illinois is in a serious financial pickle, which is why radical options such as bankruptcy are being floated as potential solutions.

Ratings agency Moody’s Investor Service earlier this month downgraded Illinois’ general obligation bonds to its lowest investment grade rating, citing the state’s growing pile of unpaid bills and its mounting pension deficit. Illinois, by the way, has the lowest credit rating of any state. Lower ratings mean higher borrowing costs, since lenders view such borrowers as riskier bets.

“Legislative gridlock has sidetracked efforts not only to address pension needs but also to achieve fiscal balance, allowing a backlog of bills to approach $15 billion, or about 40 percent of the state’s operating budget,” the agency noted.

As noted by the Fiscal Times, Illinois is the only state that’s been operating without a balanced and complete budget for almost two years.

“We’re like a banana republic. We can’t manage our money,” Gov. Bruce Rauner said after the Illinois Legislature failed to produce a full 2017 budget earlier this month.

So don’t fool yourself Illinois could face bankruptcy!

Federal bankruptcy code permits cities, school districts, and other local governments to file bankruptcy.

Some have done so, and I expect many others will in the coming years. Cities like Detroit and others in California have used bankruptcy to renegotiate their pension plans and other debts.

But Illinois could face total bankruptcy!

Because If the law should change and a state actually tried to file for bankruptcy, creditors would immediately file constitutional objections under the contracts clause and the 10th Amendment.

Some legal scholars think those barriers can be overcome. The argument would go to the Supreme Court and get resolution there!

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Alex D.

Alex D is a conservative journalist, who covers all issues of importance for conservatives. He brings attention and insight from what happens in the White House to the streets of American towns, because it all has an impact on our future, and the country left for our children. Exposing the truth is his ultimate goal, mixed with wit where it's appropriate, and feels that journalism shouldn't be censored. Join him & let's spread the good word!

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Edward Fitman
Edward Fitman
5 years ago

Years of crooks robbing that poor state is possibly gonna cost state employees there pensions cops firefighters teachers etc now tell me how that’s right time to start putting lots of politicians in prison time for people to stand up once and for all

Sally Singer
5 years ago

Maybe people will finally wake up and quit electing these crooked democrats. They keep forcing companies and families to move out of Illinois. Our property taxes are so high now we can barely afford them and they want to raise them again. No wonder people go nuts.

Fenimore Bronson
Fenimore Bronson
5 years ago

I’ll bet California will be next!

Fenimore Bronson
Fenimore Bronson
5 years ago

I’ll bet California will be next!!!!!

Cheryl Martin
Cheryl Martin
5 years ago

I am not sure Illinois is opposed to President Trump. Maybe Chicago is opposed to Pres, Trump, but there is more to Illinois than Chicago!!

JennaVeeve
JennaVeeve
5 years ago
Reply to  Cheryl Martin

There are plenty of Republican voters outside of Chicagoland. The problem is that Chicago is so much more heavily populated than the rest of the state that our votes are basically nullified. Until Democrat House Speaker Mike Madigan either retires or dies, nothing in Illinois will change.

Lal de Mel
Lal de Mel
5 years ago
Reply to  Cheryl Martin

Panama should be re-positioned to provide low cost Health Care for patients who require long periods of health care, to make Health Care affordable for the lower income segment.

Cathy Bedard
Cathy Bedard
5 years ago

Where the he’ll do you come up with this crap? I live in Chicago!

Barb
Barb
5 years ago
Reply to  Cathy Bedard

What crap are you talking about??

Russell Martin
Russell Martin
5 years ago

If Illinois is allowed what makes anyone think other states wouldn’t fall in line sooner than later. What would caution corruption, increases, etc….generally all the consequences of such an irresponsible path????

Susan Wiggins
Susan Wiggins
5 years ago

Thought the State of Michigan went bankrupt under Romney…….

Barb
Barb
5 years ago

People in this state need to WAKE up and stop electing Madigan and his cronies. Its time for a BIG CHANGE and get Republicans in to help the governor. He had NOTHING to do with this MESS… and the democrats of this state are blaming him. He inherited this mess that the democrats created. Mayor of Chicago has set aside millions of dollars to help the ILLEGALS, that money should go to the state to help the STATE NOT THE ILLEGALS. B

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