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The Illinois Policy Institute’s Ted Debrowski on the national impact of Illinois debt problems.
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Now this is not funny the state of Illinois to economic hits stand and poors downgraded that State's debt rating.
Blaming its current pension crisis the downgrade will cost taxpayers may be as much as nine -- five million dollars.
Because it will now cost -- a lot more to borrow money than any other state just about.
Joining us now I -- the -- -- from the Illinois policy institute.
Ted welcomed the show again would you think there are -- great national implications.
From this -- the downgrade of Illinois.
Well look I think that the entire nation should be concerned about this downgrade and here's why.
-- Illinois an advanced case of what the national economy will look like in a few years.
If we continue to follow president Obama's agenda.
President Obama loves to beat up his predecessors and Republicans for the state of the nation's economy -- crisis over the last few years.
But in Illinois we can't make such excuses we've been following be the big government model for decades.
And you can see where it's gotten us okay that just cannot -- that pension obligations that's the fundamental problem with -- Illinois -- its pensions right that's what they all human soul now yup.
Well -- and -- that the driver but you know if you look around what other states -- doing Wisconsin passed collective bargaining reform Indiana and Michigan passed right to work laws.
And in Illinois were so beholden to the it to the government employee unions.
That these politicians refuse to to reform the 200 billion -- pension crisis were under alright Ted doing well -- -- -- we gotta we gotta go for big fixes -- right.
And now I wanna just concentrate on Chicago for a second.
OK I am told that the matter Rahm Emanuel.
He's got a commission and looking into the city's finances and that commission suggests that they should shift.
That retiree health costs for the city of Chicago shift them onto the backs of the federal tax -- I believe that is a proposal which may be coming in Chicago.
-- side of that is a back door Obama bailouts of his former hometown -- -- -- -- what do you site.
Plus distort I think you're right look -- -- choice to look at this on the one hand.
Chicago has no business paying for Cadillac health care plans for retirees who retired it in their fifties no reason to pay that in nobody in the private sector -- that kind of perk.
On the other hand Rahm Emanuel is doing this because he knows you can get away with -- he knows he can dump lots of people onto obamacare and absolutely it's a backdoor bailout.
You don't need congressional approval for this I mean congress doesn't have to pass judgment on who on the Chicago shifting its health care retiree costs.
Congress has got nothing to do with this I -- Chicago could simply act and on drug bomb look at this that -- federal go to -- tech picks up the -- Why this fits in right with -- Obama's model of having a bigger bigger government centric programs and die in a -- for -- because he has huge -- the Chicago.
He's got to get rid of lots of costs and if you dump them on the federal government -- -- all right.
But -- cuts had to brassy Illinois policy institute does always thanks for bringing is up and I don't what's going on -- formally great state appreciate it thank you thank you Stewart.
So.
