Dire States (Deep in debt, most governors will have to either raise taxes or cut spending)

The Atlantic ^ | 1/05/11 | Megan McArdle

[Libloather]

Dire States
Deep in debt, most governors will have to either raise taxes or cut spending - exactly what not to do when recovering from a recession.
By Megan McArdle

**SNIP**

Many states have what you might call a “Don’t kill Grandma” problem: spending creates dependent—and stubborn—constituencies. At least New York doesn’t have the legislative gridlock of California, where ballot initiatives have mandated spending and prevented tax increases, and a two-thirds-majority requirement to pass tax increases has resulted in a stalemate between free-spending Democrats and tax-averse Republicans. New York’s local economy hasn’t been devastated by the collapse of a primary local industry, as have those of Michigan and Nevada, where unemployment tops 12 percent. It does not, like New Jersey, have a history of underfunding its pensions.

True, the state is no repository of fiscal virtue. As Josh Barro of the Manhattan Institute says, “They’ve made their pension payments on time because state courts have essentially ordered them to make their pension payments on time—if the legislature had had the option to misbehave, I’m sure they would have.” But its vices aren’t excessive. Barro says that New York’s budget woes are probably worse than the average state’s, but not as bad as those of California, Illinois, or New Jersey.

[NEMDF]

In Omaha, as everywhere, money is a problem. So the mayor put out a budget that included something like $1.5 million to “fight truancy”. The population of the city, proper, is maybe like 400,000. How much truancy can there be? Why should the city pay for it? (My data could be “iffy” on this stuff, it is all IIRC.) Anyway, he just does NOT GET IT, and therefore a recall election is to be held on 1/25/11.

[BobinIL]

Perhaps Gov Quinn should just raise taxes in the counties he carried in the election. That would be the BLUE ones.

[teletech]

Perhaps Gov Quinn should just raise taxes in the counties he carried in the election.

Good idea!

[Buckeye McFrog]

That electoral map of Illinois is just stunning.
The average resident of your state is absolutely and
forever SCREWED by the enormous leech population of
Cook County.

[corkoman]

Holy Cow Allegra - glad i clicked to your FR home page - you picked Baghdad?? You seem to have more cahones than most i know!

[Allegra]

Holy Cow Allegra - glad i clicked to your FR home page - you picked Baghdad??

LOL - Baghdad is where I work.

The great state of Texas is my home. ;-)