Prairie State Wire

As the State of Illinois is poised to net a windfall of as much as $7.5 billion from the federal government’s recently enacted stimulus plan, some wonder when will enough ever really be enough for the long cash-strapped state.

It all begs the question of ‘does state government really need more money?’ or ‘does it simply need to reform how it makes use of all that it already draws down from taxpayers?’

For Chicago lawyer Richard Porter, the answer is an easy one.

Richard Porter

“This spending orgy should be deeply troubling for at least three reasons: where the money is coming from, how it will be spent and the financial pain Illinoisans will feel after this cash bender comes to an end,” he recently wrote on Real Clear Politics. “The federal government will borrow every nickel it sends to all of the states and we the people will pay for this ‘help’ through either higher future taxes or a devalued dollar and diminished economic opportunities.”

Porter stresses none of the money in the bill is free, or even comes cheap.

“We the people will pay for this “help” through either higher future taxes or a devalued dollar and diminished economic opportunities,” wrote Porter. “Illinois is in a self-reinforcing swirl of financial failure: Our government’s liabilities grow as our population shrinks, which means the state’s expected future taxes are growing exponentially. This scares more people away, which drives Illinois deeper into a vicious cycle of financial failure.”

In the end, Porter has just one bit of advice.

“Illinois, don’t be fooled by all this money,” he warns. “Use the windfall to finance structural reforms to avoid a Blue State Hangover and the mother of all tax hikes in 2023.”