by Rachel Droze, Fox Illinois <\/p>\n
Its now been 719 days since the state has had a complete budget. <\/p>\n
We are two days away from the start of a special session called by Gov. Bruce Rauner. <\/p>\n
While many remain hopeful a deal can be brokered, some fear the state may soon reach its breaking point. <\/p>\n
An American state has never filed bankruptcy, but in May, Puerto Rico sought what's essentially bankruptcy relief. This is the first time in history an American territory has done so. <\/p>\n
Its leaving some to question if the state of Illinois could do the same. <\/p>\n
Its now been 719 days since the state has had a complete budget. <\/p>\n
According to the state comptroller's website, the bill backlog as of Friday is above $15.1 billion. <\/p>\n
Under current law, Illinois cannot file for bankruptcy, but Congress could amend federal law to give Illinois this option. <\/p>\n
\"You would have to have Congress pass and the president sign an amendment to the federal bankruptcy law allowing states to declare bankruptcy,\" said Kent Redfield, a political science professor emeritus at the University of Springfield. <\/p>\n
U.S. Rep. Rodney Davis, R-Illinois, said instead of this, hed like to see lawmakers work together toward a compromise. <\/p>\n
\"Come up with a solution because that's what I think we are going to try and do for our problems in Washington D.C., Davis said. That's a message I'm sending in Washington, and a message I continue to send to our leaders in Springfield and I hope they can come up with that compromise.\" <\/p>\n
Bankruptcy could also potentially be unconstitutional. <\/p>\n
\"There is a provision in the U.S. Constitution, Article 1, Section 10, that prohibits states from impairing contracts, Redfield said. And then you'd probably get into a long court battle about exactly does that specifically apply to things like pensions, like bonds.\" <\/p>\n
Redfield said even if bankruptcy is the route chosen in the future, the case would likely have to be decided in the Supreme Court. <\/p>\n
He said the state would be better off raising taxes and cutting programs now, rather than dragging out a long court proceeding. <\/p>\n
Tune into Newschannel 20 Tuesday to find out how state pensions would be impacted if the state were to go bankrupt. <\/p>\n
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Could Illinois file for bankruptcy? - FOX Illinois<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" by Rachel Droze, Fox Illinois Its now been 719 days since the state has had a complete budget. Continue reading