And Rightly So!

Live Free or Die

Warnings of a fiscal meltdown?

Posted by Raven on April 25th, 2008

Copyright © 2008 And Rightly So!

The scary headline of the day:

Many states appear to be in recession
The finances of many states have deteriorated so badly that they appear to be in a recession, regardless of whether that’s true for the nation as a whole, a survey of all 50 state fiscal directors concludes.

The situation looks even worse for the fiscal year that begins July 1 in most states.

“Whether or not the national economy is in recession - a subject of ongoing debate - is almost beside the point for some states,” said the report to be released Friday by the National Conference of State Legislatures.

Oh my.


Photobucket - Video and Image Hosting

By mid-April, 16 states and Puerto Rico were reporting shortfalls in their current budgets as the revenue those budgets were built on - typically, taxes - fell short of estimates. That’s double the number of states reporting a deficit six months ago.

The NCSL said the news is even worse for the upcoming fiscal year, with 23 states and Puerto Rico already reporting budget shortfalls totaling $26 billion. More than two-thirds of states said they are concerned about next year’s budgets.

Yikes. It’s not good folks.

Massachusetts is one of the states shown in the graphic above that has a problem. Yet they allow these foolish and wasteful expenses to be paid for out of the tax payers’ pocket.

State lawmakers are responding to warnings of a fiscal meltdown by larding the budget with $1.3 billion in new spending - much of it pork - that would double next year’s deficit and shower money on golf courses, merry-go-rounds and local parades.

A Herald review of House budget amendments shows that individual lawmakers have proposed hundreds of millions in new expenses, even as their leaders and the state treasurer have cautioned that revenues could drop sharply in the months ahead.

Among the spending requests:

• $1.5 million by Newton Rep. Kay Khan to repair an irrigation system at a Newton golf course;

• $250,000 by Dorchester Rep. Martin Walsh for the Hub’s First Night celebration;

• $100,000 by Holyoke Rep. Michael Kane for his town’s St. Patrick’s Day Parade;

• $50,000 by Kane for a merry-go-round at a state park in Holyoke.

“There’s been all this talk of a $1.3 billion deficit, but I guess we found out where it’s really going,” said House Minority Leader Brad Jones, who has railed against excessive spending. “It’s frustrating, but it’s not surprising.”

:roll:

They defend these expenses as needed items and reject the call for cutting back on the budget, like the peons must do in order to buy their food and gas:

Democratic legislators defend their proposals, saying that many of the amendments would pay for legitimate needs such as elder care and substance abuse treatment.

They also argue that the spending items that often bring criticism - the proposals for gazebos and local summer festivals - are a reflection of the myriad requests they get from constituents.

“I strenuously disagree with the notion that this is irresponsible,” said state Rep. Kathi-Anne Reinstein (D-Revere). “We have an obligation to the people of our districts to advocate for things that are important to them.”

Reinstein’s $50 million in requests include tens of millions for elder care and home heating assistance. She also proposes $150,000 for repairs to a local park and $25,000 for summer programs on Revere Beach.

State Rep. Barbara L’Italien (D-Andover) proposes $125 million in new spending, the second most in the Legislature. She said much of the money would pay for special education services - both to expand key programs and help communities cope with ever-rising costs.

We all have wish lists. When times are tight though, and the money isn’t or shouldn’t be rolling in at the speed of roller coasters, we have to make some sacrifices. Trim out unneeded expenses. Cut back on wasteful spending. Budget better.

But who am I to speak of such things? I don’t live in MA (THANK GAWD) and this is one reason why.



7 Responses to “Warnings of a fiscal meltdown?”

  1. Duncan Says:

    To all those states who choose to spend their tax $$$ on frivolous crap.. here is my response…

  2. Raven Says:

    BWAHAH Love that little graphic and will have to use that. Hehe!!!

  3. Jennifer Says:

    Wait - isn’t the great state of Mass. the one that has universal health care program? States that are having trouble need to stop spending! Just like people who live on credit cards and cannot pay them off. If you don’t have the money, don’t spend the money and do without.

  4. Always On Watch Says:

    The economy here in the D.C. area is obviously in a downturn. Still, almost every local government refuses to make the necessary budget cuts. For example, Fairfax County wants to expand certain services, which seem rather pointless to us residents.

  5. Weapon of Mass Disturbance Says:

    Don’t forget the $8,000,000 to teach stray dogs how to use oral contraceptives.

  6. Raven Says:

    Oh yes..MA is in deep doodoo when it comes to their universal health care. See, they were not counting on covering everyone. As of now not even everyone has applied and they cannot afford it. Dumb asses. It’s a total farce- this law. The peasants will be paying out their ying yangs for this. If they don’t revolt first.

  7. Raven Says:

    BWAHAHAH