The money has run out in Illinois. Despite having already mandated an income tax increase this year, the Democratic-controlled state legislature is facing the need for steep spending cuts. As Governor Pat Quinn said, “The truth is that over the past 35 years too many governors and members of the General Assembly have clung to budget fantasies rather than confronting hard realities, especially with respect to pension and Medicaid investments. . . . Today, our rendezvous with reality has arrived.”These are the kinds of statements and spending cuts that would be denounced with words like “savagery” and “draconian” if they had been made by the other party. But the rules of the game have now changed. Illinois’ debt has climbed in recent years in large part due to ballooning pension costs, which Governor Quinn pegged at $5.2 billion for the coming year—triple the total in 2008.The country’s bluest states—Illinois, California, New York—are among its most dysfunctional. A meaningless coincidence, obviously.