The goal of No Pension Bailout is to prevent the federal government from bailing out Illinois or any other states that have mismanaged their funds.
We oppose a bailout because not only would it destroy state sovereignty and the concept of fiscal federalism once and for all, it would also transfer trillions of dollars from the most responsible states to those the least responsible. Further, it would have the net effect of delaying even longer the inevitable financial reckoning that Illinois and other states must face. The sooner we face it the better.
This project developed because Gov. Quinn floated the idea in his 2012 budget book in February of 2011.
As this unfolded the governor’s team said this bailout talk was all just an erroneous insertion by staff. “Nothing to see here – we don’t want a bailout” was the line they peddled.
Our policy team saw through the doublespeak. They saw the opportunity to put a project together to force this issue. The governor is upset that the truth is being made known by us.
Our No Pension Bailout project matters because no one ever saw the TARP bailout, the auto bailout or the states’ stimulus bailout coming. They all passed in a crisis atmosphere and resulted in destructive policies.
We cannot let a federal bailout of state debt became the next “sudden” crisis. It will destroy what is left of fiscal federalism and a state’s ability to innovate and lead – exactly what Texas, Indiana, Wisconsin, Michigan, Florida and Ohio, among others, are all doing.
Without states innovating, the federal maw will subsume us all. That is why this project matters and that is why your support of our work not only has positive consequences for Illinois, but for the country.