Wednesday, March 09, 2011

Illinois: Still a Target for WI Commerce

No doubt that business will be leaving Illinois. People, too.

By 2018 Illinois will run out of plan assets which will require that the state begin contributing $11 billion annually from revenues between 2019 and 2023. Currently, the state contributes $3.5 billion annually, and has often bonded its contributions. Using less generous assumptions, this scenario is much worse. Indeed, as Dr. Rauh notes this will present a “catastrophic shock” to Illinois’ current revenue needs. --deRugy quoted at AOSHQ

IOW, Illinois will have to triple its tax-funding of pensions beginning ~2020.

They WILL look at tax increases to do it.

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