Illinois has dug itself into such a huge financial hole that it may not be able to provide basic services to residents or meet employee benefit obligations, according to a national task force that is due to release a report about the state’s finances.”

“The report, prepared by the nonpartisan State Budget Crisis Task Force and expected on Wednesday, will also say that the state’s fiscal stress is a “serious drag” on its economic performance, a statement from
the task force said. The group is led by former Federal Reserve Chairman Paul Volcker and former New York Lieutenant Governor Richard Ravitch.”

Unfunded pension liabilities and mismanagement of the state’s finances for decades brings Illinois to the bottom of the fiscal heap for states. The Chicago Tribune covers the breaking news here.