I hope Meep is planning to do all of the states eventually, or at least of of the states in fiscal distress. But that is a tall order. To date she’s done California and Illinois.
First up: States Under Fiscal Pressure: California.
The second one is that, unlike the federal government, they don’t have a money printer, and they really need tax revenue.
Governor Newsom of California announced yesterday that he is relaxing the statewide lockdown sooner than he had said he would.
What gives? I think Newsom is finally recognizing tradeoffs. He started the fiscal year with an expected budget surplus. He now expects a state government deficit of $54.3 billion.
At least they had a surplus going in to this mess. It shows some level of discipline. Unlike Illinois.
Illinois has some serious problems. States Under Fiscal Pressure: Illinois.
They’ve been issuing bonds with some of the highest yields in the muni market because of course they are.
So let’s hit the issues, in no particular order.
Illinois looking to raise public employees’ salaries
Wirepoints: Big raises for Chicago Teachers Union, state’s AFSCME shows where federal aid to Illinois will end up – Wirepoints
As hundreds of thousands of Chicagoans are getting laid off or seeing their pay slashed as a result of the economic shutdown, Chicago’s Mayor Lori Lightfoot has been quietly finalizing the $1.5 billion, five-year contract she negotiated with the Chicago Teachers Union six months ago.
So they’re broke. Beyond broke. And they are handing out raises, and holding their hand out for a handout from the rest of us. Yeah, count me out.