I Demand a Recount!

In an outcome I find impossible to fathom, 24/7 Wall Street ranks Illinois as the 49th worst-run state in its annual ranking:

Illinois collects more than $3,000 per capita in state and local taxes each year, one of the highest per capita tax revenues. Yet, the state’s fiscal management system does not appear to be operating optimally, which is the main reason it ranks as the second worst-run state. For example, Illinois has one of the smallest rainy day funds compared to other states, at 1% of its general annual budget — an indication the state may not be able to satisfy its short-term obligations. Illinois’ debt is equal to more than three-fourths of its annual revenue, also one of the highest shares in the nation. Similarly, the state’s pension fund is not financially healthy. The state only has assets on hand to meet 39% of its pension obligations, the lowest ratio of any state. Perhaps as a result of the state’s finances, Illinois has the worst credit rating and outlook from S&P and Moody’s of any state.

The housing market in Illinois is also struggling. One in every 73 housing units is in some state of the foreclosure process, nearly the highest foreclosure rate in the country. As is often the case in states with particularly high foreclosure rates, home prices in Illinois have dropped by more than 10% from 2010 through last year. This decline was the worst in the country during that time.

Only New Mexico is ranked lower. This is an obvious miscarriage of justice. Illinois should have been ranked dead last. Consider. In addition to the factors listed by 24/7 Wall Street Illinois

• Has the lowest state contribution to education of any state.
• Has the 2nd highest rate of outmigration of any state (only New York is higher).
• Has a state legislature that has refused to enact a budget.
• Is rated C- on its infrastructure by the civil engineers’ professional association.
• Is the only Midwestern state to be ranked in the bottom third of states.
• Is the most corrupt state in the Union (only Louisiana provides any real competition).

If Illinois were a company it would be placed in receivership and the entire management team replaced. Illinois’s voters replaced the Democratic governor with a Republican last year. Illinois’s legislatures, each with Democratic supermajorities, have completely refused to work with the new governor.

Illinois has political sclerosis. It needs to discharge its debts in bankruptcy, renegotiate its contracts with its public employees, something for which there are both legal and political barriers, and it needs to restructure its way of doing business completely. The only strategy our present leaders can imagine is raising taxes which is the reason Illinois has the 2nd highest rate of outmigration.