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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