JB Pritzker Plan On Federal Bailout Backfires On Illinoisans
BREAKING NEWS: JB Pritzker Plan On Federal Bailout Backfires On Illinoisans
JB Pritzker Plan On Federal Bailout Backfires On Illinoisans and now the state is in the worst financial crisis in history.
- State government throughout the nation was booming prior to the coronavirus pandemic
- However, Illinois was bleeding financially even prior to the coronavirus pandemic
- Led by the heavyset obese freshman rookie governor, J.B. Pritzker, the state was in a major financial crisis prior to the coronavirus outbreak when other states were raking in billions of dollars
- When the COVID-19 outbreak hit the United States in February 2020, it hit all states hard
- However, the political newbie J.B. Pritzker was the first governor to shut down Illinois
- Illinois remains to be one of the last states to reopen
- Big J.B. Pritzker politicized the coronavirus pandemic
- He wanted to make a name for himself so he can be on the 2022 Democrat Presidential ticket
- Many experts and analysts believe J.B. Pritzker always assumed the federal government will be bailing financially strapped Illinois
- This is why he extended the executive stay at home order and ordered thousands of businesses closed due to the COVID-19 pandemic
- Pritzker’s tactics turned out backfiring on him and Illinois Democrats
- The White House said the federal government will NOT be bailing out financially irresponsible states such as Illinois and New York
- Now, J.B. Pritzker is scrambling from the major financial shortage the state is facing
JB Pritzker Plan On Federal Bailout Backfires On Illinoisans: What Now?
J.B. Pritzker and Illinois Democrats were so sure they will be getting billions of dollars in federal bailout due to the coronavirus pandemic.
- With these funds, Pritzker and lawmakers were planning on balancing the state’s budget and deficit
- This is the main reason why Pritzker shut down Illinois way before other states and is in no worry in reopening the state
- Having the state closed means loss of tax revenues
- This was not the main priority for Pritzker because he was counting on the federal coronavirus relief funds
- However, this plan has totally backfired on the governor
- Governor J.B. Pritzker is giving heads-up to all the department heads of all state agencies to get ready and prepared for 5% budget cuts for the 2019 and a 10% cut in budgets for the next year
- Pritzker blames the COVID-19 outbreak for Illinois being in such a financial crisis
- However, the rookie freshman governor is wrong
- The state had serious financial problems way prior to the coronavirus outbreak
- The state’s mismanagement and financial irresponsibilities have driven Illinois to the verge of bankruptcy
Illinois is ranked as the highest taxed state. Illinois has the nation’s second-highest property tax rate. As of June 2020, the state ranks as the highest out-migration state in the nation. Both businesses and individual taxpayers are fleeing Illinois to other low taxed states.
State Of Illinois’ Financial Position
Michelle McCue of Gustan Cho Associates has been following the economic and financial situation of Illinois for the past several years and especially since JB Pritzker got elected. Michelle said the following:
The $43 billion spending plan Pritzker signed for the budget year that began July 1 relied heavily on federal aid and borrowing to plug a massive hole caused by revenue lost to the COVID-19-induced economic slowdown. Republicans, who largely opposed the budget, were critical of its reliance on uncertain assistance from Washington and a provision giving Pritzker additional leeway to shift money between different budget lines. The partisan lines continued to be drawn on Tuesday as the first-term Democratic governor blamed the threat of budget cuts on the GOP.
JB Pritzker Plan On Federal Bailout Backfires Leading To State Budget Cuts And Potential Layoffs
Illinois is in deep financial trouble. Financial trouble will lead to other potential disasters like a lack of services. J.B. Pritzker is not taking the blame for his financial irresponsibility and said the following:
Every state in the nation has suffered, every municipality in the nation has suffered from the fiscal effects of COVID-19. However, until Republicans in Washington decide otherwise, middle-class, working-class, and poor families across our state and across the nation will likely suffer from cuts to public safety, education, human services, and environmental safety. And the potential layoffs will make the economic recession worse. We are reviewing the budgets of agencies under their control to identify potential cuts and will need to implement those if there is no action taken by Congress. I can’t tell you exactly when each cut will take place. This year’s budget is only affordable in its current form with federal support to bridge the pandemic-related shortfalls and that now appears not to be forthcoming.
An estimated $6.5 billion in revenue will be lost this year in Illinois according to data and numbers by the governor’s budget office.
Governor Pritzker Orders Department Heads To Cut 5% From Their Budgets This Year And 10% Next Year
The heads of state agencies have a deadline of October 2nd, 2020 to complete a list on how they are going to reduce 5% from their budgets this year and a 10% budget cut for next year.
- Department heads have discretion on how they are going to reduce spending
- Many department heads are going to suspend hiring and job promotions for this year
- Many department heads are planning on laying off state workers next year
- For example, the Illinois State Police has hundreds of state troopers retiring every year
- The state police director and upper management have suspended hiring new state troopers
- The State Police is now short 20% in personnel due to not replacing retiring troopers and personnel
- State troopers who are assigned take-home squad cars are instructed to take better care of their squad cars so it lasts past the 200,000-mile mark
- Although the state police are short 20% personnel, they are still running at a deficit due to the broken pension system
- State troopers can retire with 50% pay after 20 years of service and 75% of their highest year annual pay with 30 years of service
- Although the retiring state trooper no longer works, the state still needs to shell out anywhere between $50,000 to $100,000 per year for the life of the retired state trooper
This is why Illinois needs pension reform. It is a broken pension system and is being run like a Ponzi Scheme.
Tax Increase Likely For Illinoisans
JB Pritzker is in a panic mode in shock that the federal government will not be bailing out mismanaged states. Inside anonymous sources said the governor is not just thinking about cutting spending but also increasing taxes and creating new taxes for Illinoisans.
JB Pritzker issued the following statement about the forced spending cuts:
I can promise you that for everyone and anyone who got into public service who actually wants to serve the public, this is a nightmare scenario. This year’s budget allows for borrowing of up to $5 billion from the Federal Reserve that would be repaid with anticipated but uncertain federal aid. Illinois became the first state to tap a new Fed program designed to aid state and local governments when it borrowed $1.2 billion in June to plug a hole in last year’s budget. Illinois officials also have been hoping for a loosening of restrictions on how the state can spend $3.5 billion in federal aid the state has already received. Currently, those funds are designated for expenses directly related to the COVID-19 response.
Despite the mass exodus of Illinoisans to other lower-taxed states, the governor is pushing hard to implement his FAIR TAX. It is up to the voters to vote for a progressive tax system for Illinois from the current flat-tax. It seems Illinois business owners and taxpayers are getting hurt the most due to incompetent politicians. Never in history have numbers been so high on out-migration. Pritzker does not seem too worried about it. When asked about the out-migration of Illinois, Pritzker has shrugged it off that out-migration is nothing new to Illinois. Certain folks move out while others move in. However, this governor has it wrong. The number of businesses and taxpayers moving out far outnumber those moving in. Until Illinois gets competent politicians and lawmakers, the state is in very deep trouble.