Illinois Turnaround Plan

Illinois’s budget is broken—that’s a fact accepted by almost all Prairie State policy analysts. The state has more than $6 billion in accumulated operating debt, to say nothing of the $83 billion in unfunded public employee pension liabilities. How did Illinois get into this mess—and more importantly, how do we get out of it?

The Illinois Policy Institute’s Budget Solutions 2011 offers an alternative spending blueprint that addresses our state’s immediate problems rather than kicking the can further down the road.

Illinois is in rough shape. The state faces $6 billion in unpaid bills, and the unemployment rate is over 11.3%, the highest in 27 years. The state’s bond rating is the second lowest in the nation. Pension plans for public employees are woefully underfunded, with a liability of over $80 billion, and the state’s increasing annual pension contribution is squeezing out spending on core government programs.

Want to be a hair braider? Get a license. Already a pizza restaurateur? Raise your prices. Starting a business? First prove to the state there is a “need” for your product. Like flowers? Don’t even think about trying to sell them on the street—it’s not allowed. And, don’t dare try to start a cupcake business out of an unapproved kitchen.

Out of the 50 states, Illinois ranks 48th in economic performance. According to the ALEC-Laffer State Competitiveness Index, Illinois is doing better than only two states: Michigan and Ohio.