Illinois Treasurer Dan Rutherford Sounding the Alarm on State Debt

SPRINGFIELD – May 23, 2011 – Illinois State Treasurer Dan Rutherford is today detailing the state’s debt in a clearer, more meaningful manner than many taxpayers have seen. Borrowed dollars and other financial liabilities have become oppressive, and the state’s credit rating makes future borrowing both unaffordable and unwise.

“I’m sounding the alarm today. Every household in Illinois is responsible for the repayment of $10,000 to reimburse our bond holders in the coming years. The backlog of other bills and our unfunded pension and retiree health care liabilities, when combined with the bond repayments, brings household debt to a whopping $42,000. Most families do not have that kind of cash,” the state treasurer said. “We need to cut our spending and break our unsustainable borrowing cycle before we realize a further financial disaster.”

Troubling numbers:

Illinois taxpayers’ debt from borrowing = $45 billion (was $12 billion in 2002;  $25 billion of the $45 billion is from pension debt)

Illinois taxpayers’ unpaid bills = $8 billion

Illinois’ unfunded pension and retiree health care liabilities = $140 billion

Each Illinois family shoulders this debt = $42,000 per household