yo Kyle,
Is the key lock cylinder loose?
Key Moves Freely & Won't Engage the Starter; "...The part that broke is called the rack actuator. I have enclosed a picture of it for your reference.
To replace it, the upper portion of the column needs to be disassembled. If you are comfortable doing that, you will need to remove the following parts to gain access..."
read more
http://en.allexperts.com/q/Steering-Column-Repair-2047/2009/6/1986-Ford-Bronco-Full.htm
Key Lock Cylinder & Switch Replacement & Depictions in 87-91 (figure 1) (from Factory Manual and the Ford Electrical & Vacuum Troubleshooting Manual (EVTM)
Source: by Broncobill78 (Dave) at
http://broncozone.com/topic/14120-87-91-ignition-switch-info-troubleshooting-guide/
Recall, Ignition Switch FSA 95S28 for 88-91 Bronco & F Series & many others
check w/local Ford dealer with VIN ready to see if the recall was performed or Not Needed
http://www.revbase.com/BBBMotor/TSb/DownloadPdf?id=133964
EXCERPTS:
Note that this is a safety recall, and any included vehicle will be repaired free, no matter how old it is, how long the owner waits to present it for repair, or how many times it has been sold.
On a small number of the affected vehicles, a short circuit could develop in the ignition switch that could lead to overheating, smoke, and possibly fire in the steering column area of your vehicle. The condition may occur while the vehicle is in use or unattended.
At no charge to you, your Ford or Lincoln-Mercury dealer will replace the ignition switch with a revised design switch. Dealers currently have instructions and parts ordering information.
The dealer will also check the wiring in the upper steering column area and will inspect for the installation of any aftermarket electrical accessories. If an improper installation is noted that is not part of this recall, you will be advised to have it corrected.
88-91 Bronco/F-Series
Built through September 30, 1992
Built through September 30, 1992
Built through September 30, 1992
Excluding F53 and F59 models