Nearly a week into the new budget year, all three states are stymied, unable to balance their books and unable to decide whether to fill the huge gaps with tax increases, spending cuts or both. Either way, it will hurt.
Politicians, feeling the pressure from state employees and constituents, are sniping at one another and deploying their legislative tools. California Gov. Arnold Schwarzenegger (R) vetoed a budget because it included tax increases. Illinois Gov. Patrick Quinn (D) vetoed one because it didn't.
Mississippi used a last-minute sleight of hand to make the numbers work, passing a budget that left the state's utility regulatory agency and public service commission unfunded. Connecticut's 50,000 employees will take seven unpaid furlough days in the next two years.
'Programs will be eliminated'
Arizona's Republican governor called the Republican-led legislature into special session on Monday after the two sides failed to agree on the fate of a sales tax hike. Ohio Gov. Ted Strickland (D) said the state is losing money every day its two-year budget goes unpassed and called on lawmakers "to bring their pizza and pillows to the statehouse."
"For a lot of people, there is a continuing failure to recognize the severity of what is happening with this economy," Strickland said in a telephone interview from Columbus. "Programs will be reduced. Some programs will be eliminated."
Billions in federal stimulus dollars have kept cuts from being worse, Strickland said, but there is no magical cure for budget ills largely caused by plummeting tax revenues. The combination of a sour economy and balanced-budget requirements is forcing states to live with smaller budgets at a time when demand for services is increasing.
Ohio's unemployment rate is 10.8 percent "and going upward," Strickland said. For the next two years, he projects a $3.2 billion deficit that would be met with $2.4 billion in cuts and $933 million in estimated revenue from new video lottery terminals at racetracks.
In California, the budget hole was $24 billion until the government missed its July 1 deadline to have a new budget in place. Now, Schwarzenegger told reporters on Monday, the gap is $26.3 billion.
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- ClipsFC
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This is why I hate the private sector. It takes the public sector down with it. We should implement a separation of capitalism and commonwealth. They ought not interfere with one another.
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The situation has nothing to do with the slowdown in the economy, it is a tax and spend problem brought on by politicians trying to keep their job. They spend and spend to give more to their constituancy, not caring that eventually the bill comes due. If I know that my funds are low I don't go and spend my money on frivilous things then try to borrow from everyone I know. I pay my bills, then if I have anything left over then and only then do I buy something that I want. When you're a teenager (and living at home) you can get away with wasteful spending, but when you become an adult tou have to use some wisdom. Our governments, (state and Federal) need to grow up and take some responsibility. Cut your spending, stop wasting money (that you don't have), and stop robbing our kids piggy banks.
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well maybe MJ's death will help.... Cali can make some money, and no more little boys will get hurt .... 2 birds with one stone ... woo hoo ...
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- ks_kickapoo_woman
- 4 months ago
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California's budget is a mess! If one of us didn't do our jobs for years, we wouldn't have one. California has such a concentration of wealth, the focus shouldn't be on cutting social programs and closing parks, but finding creative was to find new revenue. How about a double registration (always) for gas guzzlers of a non-business class? Supplementing forestry shifts with volunteers, "closed days" for parks instead of complete forfeiture? Cutting police costs? Lessening the burden of the prison drain by having sane laws regarding non-violent offenders and non-citizen criminals? Or even a tax on the legalization of marijuana?
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- Denica_Cassandra
- 4 months ago
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We're all in the same boat... almost every state is feeling this right now. WI's Governor Doyle vetoed 81 items from the state budget before signing it this year.
And while I don't see how this article pertains in any way to Michael Jackson, I will say that he is one of few who doesn't have to be concerned with financial debt anymore.
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MJ doin's today is gonna generate a little income for the state .... you all are getting a lot of out of towners that need to eat and drink ... sleep ... ect....
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- ks_kickapoo_woman
- 4 months ago
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"Numinant" you cannot separate the public and private sector. The public sector is the parasite on the back of the private sector.
When a dog dies the ticks fall off!
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Funny thing, everybody wants the public services but nobody wants to pay for them. Everyone wants the good highways, fire and police, city water sewer and garbage services. Hopefully you don't think the Gubinator is going to write a check for a damn or a bridge.
If we keep electing multi-millionairs to office we are going to get what we deserve. No taxes and no public services.-
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- bluestranger
- 4 months ago
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Everyone should just blaze one up and let life be
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ill give you a couple ways to save money and make money..
1.stop building dumbass pointless bridges.
2.Stop spending money on fighting the war on "drugs"
3.Stop advertising california..im sure everyone knows by now that california exists.
4.Everyone needs to chill and start thinking positive
5.America needs to not get involved in other countries hissy fits.
We'll all be good if we follow that :) -
the guvenator is being a major political jackass. he needs to get all his ducks aligned and start acting like the terminator of bad budgeting.
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- thewarnerla
- 4 months ago
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I don't give a shit. we have the answer but still wont legalize pot. I don't care anymore......
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the california economy was broken by an artificially created energy crisis. the republicans sought to oust the democratic governor by shutting down power plants and it worked. california was the 10th largest economy in the world before republican meddeling gave us that unqualified muscle man.
1 in 10 americans live in california, with that kind of economy, whatever happens in california, effects all america. thanks dick cheney, with enron, you are to blame for the recession.
dick have you done anything for the good of mankind? has it all been about you alone? -
Its unbelievable how much California is in need of money. They are now proposing to give ownership of many of their natural parks to the government to save just a few miilion dollars. In my opinion its going to take way more than letting go of a few parks to save such a small amount of money in comparison to the billions in debt they are in.
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Illinois has implemented a classic political response. Let's not bury the indigent dead, they can't vote now anyway.
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lol..........
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- ks_kickapoo_woman
- 4 months ago
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