Originally Posted by DePaul Bunyan
California's finances aren't in a whole lot better shape than IL's
You'll have to support that because from where I sit it couldn't be more wrong. It's a delusion the un-knowledgeable who suffer from a certain desire for Californians to share their suffering have.
Let's see. California has a balanced budget and has had every year because its Constitution requires it (these are projections--at the end of at least 3 of the last 5 years, there was a budget SURPLUS). California has a "rainy day fund" set aside for unexpected budget problems with a current balance of around $8 billion (they ay have to spend a little of that on state-maintaied dams this year). California had, in 2016, about $116 billion of general fund supported debt (bonds) existing and approved and a gross state product of almost $2.5 trillion (with a T). That's a debt to GSP of 4.6% (by comparison, at the federal level the federal debt is now over 100% of the gross national product).
CA has an economy bigger than any country in the world except the U.S., China, Japan, Germany and the United Kingdom.
Those with superficial knowledge of the situation may have concluded that CA was in budgetary trouble due to the fact that until a recent Constitutional change, CA required a legislative supermajority to pass a budget which, in turn, meant the Democratic legislative majority required some Republican votes (usually, just a couple). I several years within recent memory the wheeling and dealing to obtain those votes caused the legislature to miss the end of the old fiscal year to pass its budget. That, in turn, meant the state Treasurer had to stop spending money and n 2 cases I recall paid state employees and creditors woth IOUs for a week or two (the IOUs were promptly redeemed for cash when the budget--balanced as required--was passed).
So how does Illinois compare in specific terms? One direct comparison are the state general obligation bond ratings. California's is AA- from S&P and Fitch, Aa3 from Moody's. Illinois's is BBB from S&P and Fitch, Baa2 from Moody's (in each case, Illinois is the lowest of the 50 states).
This article from today's Wall Street Journal isn't promising for Illinois (CA schools are having no such problem):
Illinois Universities Feel the Brunt of State’s Fiscal Woes
By MELISSA KORN
March 18, 2017
With the budget stalemate in Illinois in its 21st month, public universities in the state are going beyond belt-tightening to deal with a funding drought that has no end in sight.
Campuses already have paused new construction and stopped hiring for vacant positions. Now, universities including Northeastern Illinois, Governors State and Southern Illinois are looking to fixes such as raising tuition, cutting academic programs or laying off student workers . . . .
So I guess if your company leaves CA and goes to Illinois you may want to leave the kids in their CA colleges.