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Shutdown impact could hit soon

SPRINGFIELD -- If the federal government does not raise the debt ceiling, it will run out of money to pay its bills and Illinois could take a big hit.
SPRINGFIELD -- If the federal government does not raise the debt ceiling, it will run out of money to pay its bills and Illinois could take a big hit. A lot of the state budget comes from federal money; things like grants for education and environmental protection.

The state also relies on the federal government for reimbursements on some Medicaid spending. Kent Redfield is a Political Science Professor at the University of Illinois at Springfield. He says losing any part of that would be devastating for our state government and there are other potential setbacks.

Social Security checks may not be processed, which means less money in people's pockets, and less spending in the state's already crippled economy. The bottom line is that a U.S. default would hurt down the road.

"It's not going to be this huge nuclear explosion on October 17. It's kind of like a tree falling. It just slowly starts, it picks up momentum and then you have a big crash," said Redfield.

Illinois is already facing a tough budget. The state has $100 billion in pension debt and billions in unpaid bills. However, many seem confident Congress will reach a deal. But, with less than two days left, there is still no solution on the table.
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