Gee...I wonder which states would have the most egregious lies about their financial condition? Yep, ILLINOIS and CALIFORNIA.

Gee...I wonder which states would have the most egregious lies about their financial condition?  Yep, ILLINOIS and CALIFORNIA.  Two states that have grossly inflated their anticipated income from retirement funds and other investments.

Financial Crises

Report: State budgets fudge numbers to hide massive debt

By  Maxim Lott
·Published November 13, 2014
·FoxNews.com

America's red ink runs much deeper than you think.

Aside from the nearly $18 trillion national debt, many state governments are looking at future budgets that are trillions of dollars in the red. And they've hidden the numbers by dramatically under-reporting that debt, according to a new report by the think tank State Budget Solutions.

The group looked at what are known as "unfunded liabilities" -- or debt states will owe down the road. It found a number of states are fudging their numbers -- big-time -- using tricks like assuming their stock investments will soar.

The book-cooking could mean bad news for public pensions and other programs that rely on these budgets. The report finds that, nationwide, states have unfunded liabilities of nearly $5 trillion, or $15,000 per American (even though the states allegedly low-ball that number at $2.7 trillion).

“They’re making promises that they can’t keep,” Joe Luppino-Esposito of State Budget Solutions told FoxNews.com.

Illinois was one of the worst offenders, according to the report. It found that while the state says it has an “unfunded liability” of $8,133 per person, the true amount is three times higher at $25,740 per Illinois resident.

“Public pensions assume they will make 7-8 percent every year. Obviously, they don't. That, combined with states that aren’t putting as much money as they promised into pension plans, causes many states to be in a huge liability hole,” Luppino-Esposito said.

Other states have similar problems. For instance, California says it has an unfunded liability of $4,909 per person, but according to the report it is nearly $20,000.

http://www.foxnews.com/politics/2014/11/13/report-state-budgets-fudge-numbers-projected-debt-worse-than-reported/

In Illinois it has been a biparisan lie. Republican or Democrat, they all would not deal with not paying their bill on the public pensions. A judge could get a vested for life pension after only working eight years with health care included, and an average 140k pension. It was unsustainable but both Republican and Democratic politicians and under both administrations. Governor Ryan lost three public pensions where he was triple dipping. The temporary income tax has ended, and there is deadlock on solutions which must start with contributions on healthcare, prorated pensions, and sadly reductions in people's pension benefits which were contracted. I personally know the Republican whip and could tell stories how they all kicked the ball down the field since the days of Thompson.....all the while appointing more judges, keeping township government which is duplicative, and making no real cuts where it was needed. My dislike for public unions is based on their abuses in Illinois. If you have nobody willing to say NO.......you have a problem.

The other thing which is very misleading is how the citizens of Illinois and California only get back 75 cents on the dollar of their federal tax payments. They have historically supported other states, and a simple ten percent change in federal dollars would make both these states debt free. The free loaders are clear to see, and it is clear who has debt based partially on the same.

http://www.theatlantic.com/business/archive/2014/05/which-states-are-givers-and-which-are-takers/361668/

You give two of the largest states which give a net amount to the government while other states are takers. If this could be more fair, there would be no problem with pensions in Illinois.

2seaoat wrote:The other thing which is very misleading is how the citizens of Illinois and California only get back 75 cents on the dollar of their federal tax payments. They have historically supported other states, and a simple ten percent change in federal dollars would make both these states debt free. The free loaders are clear to see, and it is clear who has debt based partially on the same.

http://www.theatlantic.com/business/archive/2014/05/which-states-are-givers-and-which-are-takers/361668/

You give two of the largest states which give a net amount to the government while other states are takers. If this could be more fair, there would be no problem with pensions in Illinois.

Face it, your last three governors are in PRISON. There might lie some of the answers to Illinois' budget issues, not what you think though I am sure.