Revolution of 2010 ??

Please read the following excerpts from yesterdays Chicago Tribune editorial entitled - The revolution of 2010.

“The current generation of state lawmakers also contemplates the abyss of debt Illinois has excavated for itself and . . . only digs deeper. State government progressively approaches the "financial implosion" famously predicted three years ago by the Civic Committee of the Commercial Club of Chicago. For lack of stiff spines in Springfield, the unfunded liability of state pension funds alone now totals some $80 billion. State retiree health obligations? Another horrorfest. And every day these unmet obligations only grow. Republican and Democratic governors alike have approved budgets that don't bother to pay for many of today's costs -- chiefly pensions and other benefits for state employees -- with today's revenues. Short on cash? No need to live within Illinois' means, Springfield repeatedly has intoned. Let's just delay paying overdue bills. Or borrow billions. Or both!”

The editorial also includes a graphic depiction of the geography of the state with the caption, “state of corruption.” The above editorial can be viewed in its entirety at
http://www.chicagotribune.com/news/opinion/chi-1025edit1oct25,0,2682341.story

The editorial ends with the following, “The people of Illinois then will determine, come Feb. 2 and in the Nov. 2 general election, whether "The Revolution of 2010" is just a catchy phrase -- or an ode to the year energized voters change Illinois.”

Revolution is defined as a fundamental change in power and/or organizational structure within a short period of time. It can occur peacefully or otherwise. It the case of governments it does require a replacement by the people governed of the existing government structure and personnel.

Corruption is traditionally defined as abuse of power and personal gain by public officials and employees through illegal means such as bribery and extortion. Corruption is much more than that. TheFundamentals defines corruption as the forced excessive payment for comparable goods, services and labor than is either necessary or available and attained elsewhere by others for less.

For non Illinois readers, all that needs to be changed to make this editorial applicable to your state is the $$$ amount of unfunded state pension fund liability and the name of your state capitol. If you are skeptical, just click on the links at left under the captions “Feeding at the Public Trough” and “Within our Means.” The Tribune’s prediction of “financial implosion” has widespread applicability. Many places have already imploded and are being artificially inflated by the corrupt spending, borrowing and money printing policies in Washington DC.

The overwhelming financial problem in all government fiscal activities is the rising proportion of personnel costs as a percent of total revenues. There are absolute limits to how much government entities can tax. There must be statutory limits to how much they spend and the commitments they make to funding employee costs, benefits, pensions and support activities. Government budgets are overwhelmed by personnel costs for wages, benefits and pensions that now consume revenues needed for infrastructure (roads, bridges, tunnels, school repairs and constructions) and other necessities such as public transportation, health care, social services and other goods and services that can and should be purchased through competitive bids from private concerns. Public employment is at record levels indicating a massive anomaly to the productivity and efficiencies that are realized in the private sector. State and local employment is a record high 19.7 million. Federal government employment is a record high 2.7 million. Over 22 million (a) people are on government payrolls!!!! The payroll costs for all these employees, coupled with the needed buildings, offices, desks, automobiles, trucks, uniforms, weapons, training sessions, conferences, computers, managerial staff, vacations, health insurance and massive pension program benefits is overwhelming limited tax revenue sources at the very time the private sector is cutting back to realize increased productivity and efficiency. This situation cannot be cured through curtailment. It requires drastic cutbacks, drastic permanent layoffs and drastic changes to benefit and pension program terms and funding. It must start in November 2010.

(a) Interested readers can go to http://www.census.gov/govs/apes/index.html and examine the details of these numbers including state specific statistics.