Illinois Municipal Bankruptcy: Updates and Further Thoughts – Updated – WP Original

 Updated 6/14/15 where indicated in italics. By: Mark Glennon*   HB298,  a bill to authorize Illinois municipalities (cities, towns, school districts, counties, etc.) to file under Chapter 9 of the Federal Bankruptcy Code, was introduced in the Illinois House earlier this year by Ron Sandack (R-Downers Grove). The bill was assigned to the Rules Committee, often a procedural purgatory, though prospects seem to be brightening a bit.   When introduced, it was typically shrugged off by most of the General Assembly’s controlling Democrats, but today they at least seem to be taking it seriously. Last week I heard Illinois Senator

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Paul Volcker warns on health of US state finances – CNBC

Mounting fiscal stress in Illinois, Detroit’s bankruptcy and the financial troubles coming to a head in Puerto Rico demonstrate the importance of developing better financial policies, according to a new report from the Volker Alliance (full text of report linked here). The municipal bond market where states and local governments raise money does not fully reflect shoddy state budgeting, Mr Volcker said. “There is a hidden agreement between issuer and buyer – neither has had an interest in exposing it,” he said. “

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Opponents block local unit ‘pruning’ – Herald-Review

Gov. Rauner created a task force to find ways to get rid of Illinois’ vast number of small, local governments. Four months into their meetings, the panel headed by Rauner’s running mate, Evelyn Sanguinetti, appears to be hitting the same roadblocks that have stalled consolidation efforts in the past.

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As Illinois Suspends Big Tax Breaks, Special Treatment Undermines a Welcoming Economy for All – Huffington Post

Both the Illinois Film Tax Credit and EDGE tax credits allow for tax breaks on income, which is a perk that small businesses and regular taxpayers do not enjoy. If the state realizes that industries won’t set up shop in Illinois without a lowered cost of doing business, then why doesn’t it address the underlying problem instead of handing out piecemeal tax breaks?

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