(The Center Square) – According to a new report, Illinois is one of five states with more than $30,000 in debt per capita.
Mariana Trujillo, managing director of government finance at Reason Foundation, said state, county and local governments and school districts are accumulating a lot of unfunded obligations.
“So this means there’s a share of your taxes that are currently and will continue to go to paying for services and goods that were already enjoyed and services already rendered,” Trujillo told The Center Square.
Trujillo co-authored the State and Local Government Finance Report that found Illinois has by far the highest state and local pension debt in the United States.
“It’s convenient for politicians to give benefit increases that they don’t have to pay for and push their problem into the future, but the problem in Illinois is unique and its scale stands out. It’s almost unheard of,” Trujillo said.
With $31,582 in overall per capita debt, Illinois trailed only New York, New Jersey and Connecticut.
Trujillo said the debt is not evenly distributed, with Chicago residents facing almost $50,000 in per capita debt.
A different Reason Foundation report released in August said Illinois’ debt ratio of 276% was the highest in the nation.
Trujillo said government debt numbers improved because of a change in the way health care retirement benefits are valued.
“Not the outcome of governments putting more money aside to pay for their employees’ benefits, not a reflection of structural reform, but only a reflection of the change in accounting standards and Illinois is one of those,” Trujillo said.
Illinois also ranks fourth in total debt with $404.1 billion.
“Not because of merit, but because of a change in accounting requirements and economic tailwinds,” Trujillo said.
Trujillo said the state’s debt ratio would go up again when the economy changes.
“It’s not the place you want to be,” Trujillo said.
