Posted on 03/11/2010 5:33:01 AM PST by Red in Blue PA
If the global recession didn’t leave you black and blue, get ready for a heavy dose of the state and local budget blues.
Americans who managed to keep their job and income steady, even though the value of their home and investment portfolio is down over the past two years, can look forward to higher taxes and fees, fewer services and, as a result, less pocket money.
"It's just becoming evident now," says Chris Hoene, director of research for the League of Cities. "It's very sobering."
State budget gaps will probably get worse before they get better over the next two years, unless the federal government extends tens of billions of dollars in aid, originated under the massive stimulus program of 2009.
The recession's other shoe, so to speak, may come as a surprise to some, but economic recovery at the state and local level tends to lag the national one by one to two years, as tax revenue—the chief source of income—catches up to events.
Unusually high unemployment will aggravate the revenue recovery this time around, following a 13-percent decline in revenue over the three most recent quarters, according to the Rockefeller Institute of Government.
"We haven't bottomed yet," says Ray Scheppach, executive director of the National Governors Association. "Every time we revise a forecast down, the actuals come in below that."
(Excerpt) Read more at cnbc.com ...
How unexpected! ;)
Yep look for many different revenue enhancement programs to include taxes and fees.........
Less pocket money [discetionary income] means less consumerism, which means fewer jobs and less income tax revenue.
Households know that when times are tough, you cut out needless spending. Why don’t state and local govts know this obvious point?
And where will the federal government get this money? From us, as always.
START CUTTING THE SIZE AND SPENDING OF GOVERNMENT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
I apologize for the outburst (rant is NOT off)
And that my FRiend, in of itself will either be the push for a massive second dip in the economy after more commercial real estate loans default this spring, or, at best, keep the recovery dismally flat.
The more accurate headline would be:
“Surviving the Recession?”
The recession is not over. The fact that all levels of government tax revenue are through the floor is all the hard evidence we need that all the “recovery” lies they are spewing through their propagandists in the state-run media are just that. Lies.
Taxes will go up. And they will try to raise them drastically. Why? App. 800,000 state workers whose incomes and pensions were promised and calculated based upon bubble-era rises in the equity market and real estate. They have evaporated and will begin to retract significantly this year and next. We also have several major economic implosions about to happen. When they hit, many of these unionized government workers will have their income cut off and their promises of pension rescinded.
Greece riots, anyone?
SEIU and other unions have been helping to create the day of rioting and are well prepared for that day. Why? Because they are ruled by communists who still envision a “world workers’ revolt.”
Obammie the Commie is in close contact with the head of the SEIU helping to coordinate events so that everything falls in-line for the most profound impact.
Union workers won’t allow it, especially in the highest population densities (cities) where riots have the greatest effect. See my previous post.
Sniff sniff.
Then cut your dang budgets like everyone else has to!
As my home appraiser recently told me, local governments are in a world of hurt if home values don’t skyrocket back up in the next couple of years. Reason: Here in Nashville they found a way to raise our assessments during a time when actual values are clearly going down. They’re writing all kinds of checks that they won’t be able to cash. So what’s next, sales tax increases, including food? Good luck with that. Those local political hacks have a lot to answer for down the road. But for right now, everything’s coming up roses for them as long as comrade Obama keeps the stimulus money going.
“if home values don’t skyrocket back up in the next couple of years. “
They are in a world of hurt right now, even without the annual assessments lower property values. Many of those foreclosed homes are not paying the property taxes.
“if home values don’t skyrocket back up in the next couple of years. “
If elected officials are banking everything on THAT happening, they are too stupid and incompetent to hold their office, and need to be impeached now.
Everyone should be prepared for Carter era inflation or worse -
buy some tangibles NOW.
Buy bulk food and household items now.
Talk about timing. The radio stations in Houston just ran a story about pending budget shortfalls will result in layoffs and furloughs with the police and fire departments. NO mention of fluff jobs with the city. Typical. And then the govt media is all surprised at the rate of ammo sales. Duh.
“Gentlemen, we have to do something to protect our phony balony jobs, harrumph harrumph harramph.”
Yep, ditto for Tennessee. All the while 0 and his buddies are gut and cutting SS, Medicare, Tricare for Life for the Retired Military over 65, giving them NO COLA raises for 3 years, 1 of our CD investments renewal’s came in and the new rate is 1.34%, down from 1.78% which was down from the 5% under GW. All so they can give freebies to college students and illegals.
When commie rags like Mother Jones starts reporting that he’s going to cut and gut SS and Medicare....buyer beware.
Obama Puts Social Security on the Chopping Block
http://motherjones.com/mojo/2010/01/obama-puts-social-security-chopping-block
Defeat Obamacare call list: List now contains the new MAYBES culled from FR posts.
PLEASE CALL! DC OFFICE LOCAL OFFICE State District
Code Red” - House Target List on Health Care
The National Republican Congressional Committee has published a target list on health care. In addition to continuing to contact the five Tennessee Democrat Congressmen, you can go http://www.votervoice.net/link/clickthrough/ext/94697.aspx to contact some of these targets. Much of the talk following Obama’s announcement has focused on how to defeat this second bill through reconciliation, but that is misleading because the first step to defeating Obamacare is not by concentrating on defeating the “fixer” bill but by defeating the Senate bill in the House when it goes to the floor for an up-or-down vote on Thursday, March 18th.
Rep. Lincoln Davis 202-225-6831 Columbia office: 931-490-8699
Rep. Jim Cooper 202-225-4311 Nashville office: 615-736-5295
Rep. Bart Gordon 202-225-4231 Murfreesboro office: 615-896-1986
John Tanner (202) 225-4714, Union City, (731) 885-7070, Jackson Phone: (731) 423-4848, Millington (901) 873-5690 TN (MAYBE)
Rep. Steve Cohen 202-225-3265 Memphis office: 901-544-4131
Harry Mitchell (202) 225-2190 (480) 946-2411 AZ 5th District
Gabrielle Giffords (202) 225-2542 (520) 881-3588 AZ 8th District
Ann Kirkpatrick (202) 225-2315 (928) 226-6914 AZ 1st District
Jerry McNerney (202) 225-1947 925-833-0643 CA 11th District
John Salazar 202-225-4761 970-245-7107 CO 3rd District
Jim Himes (202) 225-5541 (866) 453-0028 CT 4th District
Alan Grayson (202) 225-2176 (407) 841-1757 FL 8th District
Bill Foster (202) 225-2976 630-406-1114 IL 14th District
Baron Hill 202 225 5315 812 288 3999 IN 9th District
Mark Schauer (202) 225-6276 (517) 780-9075 MI 7th District
Gary Peters (202) 225-5802 (248) 273-4227 MI 9th District
Dina Titus (202) 225-3252 702-256-DINA (3462) NV 3rd District
Carol Shea-Porter (202) 225-5456 (603) 743-4813 NH 1st District
Tim Bishop (202) 225-3826 (631) 696-6500 NY 1st District
John Hall (202) 225-5441 (845) 225-3641 x49371 NY 19th District
Bill Owens (202) 225-4611 (315) 782-3150 NY 23rd District
Mike Arcuri (202)225-3665 (315)793-8146 NY 24th District
Dan Maffei (202) 225-3701 (315) 423-5657 NY 25th District
Earl Pomeroy (202) 225-2611 (701) 224-0355 ND At-Large District
Steven Driehaus (202) 225-2216 (513) 684-2723 OH 1st District
Mary Jo Kilroy (202) 225-2015 (614) 294-2196 OH 15th District
Zach Space (202) 225-6265 (330) 364-4300 OH 18th District
Kathy Dahlkemper (202) 225-5406 (814) 456-2038 PA 3rd District
Patrick Murphy (202) 225-4276 (215) 826-1963 PA 8th District
Christopher Carney (202) 225-3731 (570) 585-9988 PA 10th District
Paul Kanjorski (202) 225-6511 (570) 825-2200 PA 11th District
John Spratt (202) 225-5501 (803)327-1114 SC 5th District
Tom Perriello (202) 225-4711 (276) 656-2291 VA 5th District
Alan Mollohan (202) 225-4172 (304) 623-4422 WVA 1st District
Nick Rahall (202) 225-3452 (304) 252-5000 WVA 3rd District
Steve Kagen (202) 225-5665 (920) 437-1954 WI 8th District
Bart Stupak (202) 225 4735 MI (MAYBE)
Brian Baird (202) 225-3536, Vancouver, (360) 695-6292. Olympia, (360) 352-9768, (MAYBE)
senator mark begich (202) 224-3004 toll free. (877) 501 - 6275 just became a MAYBE
Jason Altmire 202-225-2565, Aliquippa, 724-378-0928,
Natrona Heights, 724-226-1304 (MAYBE)
On the Bubble (Major developments from the “yes” and “no” columns in the House)
http://www.freerepublic.com/focus/news/2467046/posts
Like these:
MILITARY & Retired MILITARY
Veterans’ G.I. Bill benefits MIA
http://www.freerepublic.com/focus/f-news/2464680/posts
TRI CARE FOR LIFE This from a google search:
http://economicspolitics.blogspot.com/2009/05/tricare-for-life-is-obama-trying-to.html
This option would help reduce the costs of TFL, as well as costs for Medicare, by introducing minimum out-of pocket requirements for beneficiaries. Under this option, TFL would not cover any of the first $525 of an enrollee’s cost-sharing liabilities for calendar year 2011 and would limit coverage to 50 percent of the next $4,725 in Medicare cost sharing that the beneficiary incurred. (Because all further cost sharing would be covered by TFL, enrollees could not pay more than $2,888 in cost sharing in that year.) http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf
Bill Would Restrict Veterans’ Health Care Options 11/06/09
Buyer and McKeon Offer Amendments to Protect Veterans and TRICARE Beneficiaries
Congress plans to block Tricare fee increases
http://www.armytimes.com/news/2009/10/military_tricarefees_blocked_100709w
http://www.navytimes.com/news/2009/10/military_tricarefees_blocked_100709w/
By Rick Maze - Staff writer, Oct 7, 2009
Tricare fee increases imposed last week by the Defense Department will be repealed by a provision of the compromise 2010 defense authorization bill unveiled Wednesday by House and Senate negotiators.
The fee increases were announced on Sept. 30 and took effect on Oct. 1, but the defense bill, HR 2647, includes a provision barring any fee increases until the start of fiscal 2011.
Retired Army Maj. Gen. Bill Matz, president of the National Association for Uniformed Services, said the announcement of fee increases was shocking considering that the Obama administration promised earlier this year to hold off on any new fee Tricare fee increases until fiscal 2011.
“President Obama and DoD assured NAUS and the entire military family earlier this year that there would rightly be no increases in any Tricare fees” in fiscal 2010, Matz said. “We took them at their word, and I can’t believe that a co-pay increase like this was allowed to go forward,” he added.
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