By Jim Talamonti | The Center Square
According to a new report on financial red flags, Illinois has a higher debt ratio than any other state and Chicago is the most financially tenuous place in America.
Reason Foundation used audited financial reports from state governments and the nation’s 100 largest cities, counties and school districts to evaluate them in eight measures of financial health.
Reason Foundation Research Director Geoff Lawrence said Illinois is way upside down, with a debt ratio of 276%.
“It has way more debt than assets, $80 billion in total assets versus $220 billion in debt, so if you were to try to liquidate all of the state’s assets to pay off all its debts, it would be impossible,” Lawrence told The Center Square.
The report also flagged Illinois for liabilities per capita and unrestricted net position.
Lawrence said Chicago residents are facing heavy city and county debt on top of federal and state debt.
“In addition to what you owe to the federal government in terms of outstanding debt per citizen, you owe substantial amounts as well to every level of local government,” Lawrence said, adding that the city continues to dig the hole.
“They outspent revenues by about $580 million in the last year for which we have data,” Lawrence said.
Read on here.
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