What’s going on?
Illinois is facing a pension crisis as more baby boomers retire every day. Government workers who were promised a pension are retiring, but the state is so deeply in debt that the money just isn’t there.
How bad is the problem?
The state’s credit rating has been downgraded to nearly junk status, and the government debt for the retirement system amounts to around $11,000 owed by every man, woman and child in Illinois. The state is short around $137 billion altogether across five retirement systems.
How did Illinois get here?
On today’s show, Doc talked about the bad politicians and policies that led Illinois to this disaster. Despite heavily taxing residents and homeowners, Illinois is only going deeper into debt and has run out of ways to tax people.
The state has reached a point where income tax can’t be raised anymore because it would result in garnering less money, and Illinoisans already pay the second-highest property taxes in the country. Property taxes are so high that they can cost more than a mortgage to pay off.