Skip to comments.States, Localities Face Deeper Crisis
Posted on 10/09/2008 4:22:56 PM PDT by TigerLikesRooster
States, Localities Face Deeper Crisis
The Bond Buyer
By Lynne Funk
October 8, 2008
State and local governments are facing a fiscal crisis that will be far worse than the 2001 recession because sharp declines in income and sales tax collections will lead to more widespread budget cuts in the months ahead, a new Rockefeller Institute of Government report warns.
But governments may have to issue more debt as a result of their financial difficulties, according to Don Boyd, the author of the report, titled The Damage is Just Beginning, and other market participants.
Boyd said he expects a major drop in income tax revenue in the April-to-June 2009 quarter that will make the current fiscal difficulties even worse than the "very bad" crisis following the mild 2001 recession. The state tax revenue report, which the institute releases quarterly, focused on data from April to June of this year.
"If you remember the last recession, [it] was mild," Boyd said. "If you remember its impact on state governments, though, it was huge against historical standards. It was dramatically bad. At the early part of this particular crisis, it looked hard to believe that it could be back as bad as the last one. The last one was essentially a 50-year event. This one now looks worse."
(Excerpt) Read more at financial-planning.com ...
This isn’t bad news. Anytime government deadheads lose their jobs it represents progress.
Good, maybe they can learn something about fiscal responsibility and cut spending. We hope this is the final resolution they arrive at.
Thankfully, such things are taking place in my own town. I was speaking with a Council member and he sheepishly told me they were cutting funding, and I told him, “Good! That’s what I want to hear.”
He was a little surprised by my response.
States and localities are going to get to make a choice - keep the roads paved so people with jobs can get to work, or to buy votes with welfare. Wonder which one they’ll pick?
How exactly is this a bad thing?
Remember, the purpose of tax cuts is not to INCREASE government revenue.
The purpose of tax cuts, the goal of our movement, is to STARVE THE G-Damned BEAST until it FALLS OVER DEAD!
New Jersey has a SOLUTION to this problem. WE are going to TAX the living CRAP out of homeowners; and eclipse our title of the #1 High Property Tax State in the nation - to a Communist NATION that just sucks the living life out of you! TRUST ME! I used to be with Goldman Sachs!
Just don’t cut the power and water off. I’ll take care of the rest.
The only thing that will save our economy now will be for goobermints, at all levels, to massively cut programs/budgets then cut taxes.
It’s during times like these that I thank GOD I’m a federal government employee.
First off and this is number 1. Stop all payments of any type to illegals and their off spring from school to free medical care to housing. Warn employers that the hiring of illegals will not be tolerated.
Second and at the same time, they can do what the rest of us do when our income drops, spend less.
What jobs are purely politically correct and bring no benefit to the community, county and state. Terminate those employees now.
I’m a City Councilman. We are having difficulties. Trust me, it’s NOT fun to have to cut positions. These are all friends and relatives, and are suddenly out of a job.
We are barely able to meet our obligations, and then along comes three floods this year, losses of income, debts due, and a situation where we have to raise taxes YET AGAIN to fulfill our obligations. Think I like it? Hell no.
You might have a bigger town with a bigger budget and more dead weight than I’m dealing with, but please have a little sympathy, k?
Well my husband is one of those local government "deadheads" and he puts in many more hours than he's paid for, maintaining networks for city communications. So if you have an emergency and need to pick up the phone to call 911, and the "deadheads" have been laid off, and the system happens to be having a down time because of it...you might wish a "deadhead" or two was on the job so you could reach the fire, EMT, or police department and their dispatchers. (BTW, cuts have already been made in salaries, no raises are planned, positions not filled at this time won't be filled, etc.)
When exactly did Government at any level become an employment haven for your friends and relatives?
I thought you existed to keep the water on, the streets paved, and the cops and firemen paid.
Actually, you’re right. That was a bit insensitive. Sorry.
I’m sure your husband is a valuable public servant. Just remember, though, if it weren’t for those of us in the private sector who tote the freight via taxes, his check wouldn’t cash.
And as far as salaries for firemen, cops, etc., that’s an old tactic of government. Whenever money gets tight, they threaten the public with cutbacks in emergency services while the tit-suckers on welfare and the real deadheads never miss a beat.
I’m too old to be fooled by that BS anymore.
Besides, I am at the point where I dread going to work there. If it wasn't such a bad high school drama club, it would be different.
I had an interview after I got off work today at a branch of an established private company. It went well and it seems like the atmosphere is brighter and they promote from within. It was something like 90% of people who rose in rank started there. The starting pay is kind of lousy but the benefits are very good. It is a better drive away from downtown and on a set of hours I like better. Those hours would work out so I could be more productive in side ventures. I am going to sleep on it and may give the guy a call to process my application.
After all said and done, I have been living on not much more and I usually have some side/freelance stuff anyway. If it weren't for my virtual tour photo gigs and stuff I find on Craigslist, I would have been wiped out a long time ago.
Some good news, granted small time. I have finally made my first payout peddling stock video at Shutterstock. It is a good feeling. The ones that got me over were some things I shot at a couple of old tractor shows. Now if something in stock photo would move, it would be great. All things take time.
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