Posted on 01/04/2010 10:05:01 AM PST by Cheap_Hessian
ATLANTA – If you thought state budgets were in bad shape last year, just wait: 2010 promises to be brutal for lawmakers — many facing re-election — as they scramble to find enough money to keep their states running without raising taxes.
Tax collections continue to sputter. Federal stimulus dollars are about to dry up. Rainy day funds have been tapped. And demand for services — like Medicaid, food stamps and unemployment benefits — is soaring.
As lawmakers head back to state capitols this month, budget woes range "from bad to ridiculously bad," said David Wyss, chief economist at Standard & Poors in New York. "There are some states, those hit particularly hard by the recession, that I don't think can cut spending enough. They're running out of things to cut."
Typically, the worst budget years for states are the two years after a recession ends. Across the nation, budgets are already lean after several rounds on the chopping block. And unless lawmakers increase taxes or fees — unpopular moves in an election year — most will need to cut even more as they grapple with the steepest decline of tax receipts on record. Services ranging from higher education to programs for the elderly could be in jeopardy.
The crunch could also mean new tolls to fund road projects, more prisoners being released early to trim corrections budgets, and the end of welfare programs that don't bring federal matching dollars.
The Center on Budget and Policy Priorities offers a bleak forecast: State budget shortfalls are likely to reach a whopping $180 billion for the coming fiscal year, double the size of Texas' annual budget.
(Excerpt) Read more at news.yahoo.com ...
Two words: CUT SPENDING.
Start with the bloated public union pensions...
Oh, and let’s add on free healthcare for all Americans and some illegals, too... that will fix it!!! /dripping with sarc
I’m sure 99 weeks of unemployment benefits has nothing to do with this.
You said it was gonna get worse before it gets better... sounds like you’re right.
Socialists deeply saddened that their days of power are numbered...
But, really. Is ANYONE tough enough in ANY of our fifty-seven (LOL!) states to clean up this mess? 2010 is going to be very, very interesting. Let's hope some cream rises to the top in our various states!
Deficits in Wisconsin are UP 8.4% over last year. We're $2.71 BILLION in the hole! They've pretty much picked we taxpayers clean...though that won't stop them from sucking the marrow from our bones!
Government should NEVER be in the welfare business as that is just a unconstitutional transfer of wealth. Can the whole welfare thing and concentrate on roads and prisons.
Of course the worthless politicians will not do that because they use welfare to buy votes to keep them in power.
Slowing down the rate of growth is NOT a "Cut". There is a whole lot of cutting the states should be doing. Why is it that no matter how the economy is doing the ONLY thing that always grows year to year to year is Government spending?
They can cut their own pay, their own benefits and their own staffs.
A good place to start anyway.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.