While much has been said of our problems around the growing federal debt and deficit, very little light has been shed on the other half of what I call the perfect storm. And that is why the State Budget Crisis Task Force was established last year to better understand the extent of the fiscal problems faced by the states in the aftermath of the global financial crisis.
The 11-member Task Force that I co-chaired with former Federal Reserve Chairman Paul Volcker today unveiled the first-ever comprehensive report detailing states' fiscal sustainability and actions that can be taken to address them.
While the extent of the fiscal challenge varies significantly state to state, there can be no doubt that the magnitude of the problem is great and extends beyond the impact of the financial crisis and the lingering recession. The conclusion of the Task Force is unambiguous: The existing trajectory of state spending, taxation and administrative practices cannot be sustained. The basic problem is not cyclical, it is structural. The time to act is now.
Many of us have read about the bankruptcy issues facing cities such as Scranton, Stockton and Central Falls, but when we combine the totality of the problem and look at the ability of the states to meet their obligations to public employees, to creditors and most critically to the education and well-being of their citizens, we are a threatened nation.
Our states and local governments bear a heavy burden, given that the U.S. Constitution leaves to states the responsibility for most domestic governmental functions: States and their localities largely finance and build public infrastructure, educate our children, maintain public safety and serve as the social safety net. State and local governments spend $2.5 trillion annually and employ over 19 million workers -- 15 percent of the national total and six times as many workers as the federal government.
I am hopeful the substantial array of facts that our Task Force has assembled will motivate Washington, our states and localities to commit to breaking down the disconnect that seems to permeate more and more.
To summarize, certain large expenditures are growing at rates that exceed reasonable expectations for revenues, including Medicaid, pension funds and health care benefits. And, at the same time, the capacity to raise revenues is increasingly impaired because of declines in sales, gas and income taxes. In addition, there are the spillover effects of the federal budget crisis on state and local governments, and state actions will have spillover impact on local governments.
Going forward, business as usual will not work. The storm warnings are there. Only an informed public can demand that the political systems -- federal, state and local -- recognize these problems and take effective action. The costs, whether in service reductions or higher revenues -- will be large. Deferring action can only make the ultimate costs even greater.
The work of this task force, to date, has been to diagnose the problem. Now, with today's report, we move to the next phase of going out and talking directly with the American people to gauge their interests in solving the problem, once and for all. I encourage you to read our full report at www.statebudgetcrisis.org.
And,of course the collapse of CPS-why would any young couple trust their child to be educated there?),and the fact those mean spirited people from Wisconsin and Indiana keep stealing jobs from Illinois really hurt
As an aside,could one of you tell me if you were proud,appalled or amused by the Cook COunty Executive's chastising Wisconsinites for being 'mean spirited' and trolli8ng for jobs.
Anyway,things will get worse.and then worse.Sad to say,in about 3 years you will talk lovingly of the summer of 2012 as a golden time
The other problem with many state pensions was the politician’s deferred or borrowed from pension funds rather than going to the tax payers for more money for the programs and projects that they all want. Rather than raising taxes when they should have, they borrowed or differed payments.
Now they want to make other people pay for their greed and stupidity.
Thank you independent press for letting this slide for 30 years in some cases and then scream for reactionary policy changes.
Repalzheimer's : Debilitating mental illness characterized by the inability to remember political history leading to present circumstances and personal responsibility for such.
Symptoms include:
-Stubborn denial of simple cause and effect.
-The creation of elaborate conspiracy theories to dispute extremely simple truths.
-Incessant ranting, whining and fist shaking without reason or provocation.
-An irrational fear and distrust of anything resembling intellect.
-A deep aversion to simple logic and/or common sense.
-Feelings of anger, bigotry and paranoia against anything that doesn't look, sound, think or believe as they do.
-Love affair with firearms and war.
-Complete lack of empathy.
-Religious worship of money and those who have it.
-Incredibly selfish, yet easily convinced to act against their own self interest while thinking otherwise.
While no one knows the cause, it is believed that risk factors for Repalzheimer's include consuming Fox News, The Washington Post, Rush Limbaugh, Glenn Beck and other conservative propaganda while tuning out rational conversation and civil debate.
Warning signs include using terms like "Lamestream Media", "Liberal bias", "Job Creators" and end stage cases display diminished IQ and compulsion to hang tea bags from their wardrobe.
This austerity bs doesn't work, won't work, has never worked.
Are there problems? Hell yes. Mostly caused by corruption and collusion with the big banks!
But before I'm willing to cut one penny from a Social Security benefits, Medicare, Police Pensions, etc. I DEMAND that politicians and their staffs FIRST give up their pensions, their benefits AND the cushy salaries they all seem to walk into once leaving their jobs as "serving the public."
If they really want to be servants then pay them as servants and see how much they really want to serve.
60% of Orange County firefighters earnt over $125,000 in 2008 plus gold plated benefits and retirement plans. BTW only 2% of the instances they were called out last year were actually fires....
http://bluecravat.blogspot.com/2012/07/municipal-bankruptcy-fact-of-day.html
I challenge each of you to look up your state government's CAFR (Comprehensive Annual Financial Report) and witness for yourself the assets values held. For who's benefit? Certainly not the citizens, but you can bet the farm they are using your tax money to buy those assets.
I looked at your "work" (which is an insult to the word) and is there anything NEW there?
Want to fix the states? Here's how:
1) Decriminalze MJ. Grow it and tax it for use in each state. Like the old state liquor stores. Creates jobs, creates taxes, keeps both in the state and reduces the power of the "drug cartels" they keep threatening us with.
2) Create state banks that DON'T make obscene profits everytime the state needs to borrow a nickel.
3) Audit all of the pension plans for the past thirty years and then "clawback" the bad investments the bankers got you to sink your funds into. It's not just that pension plans were deliberately underfunded the money was stolen.
4) By freeing up police to actually do their jobs again rather than chasing MJ the lower crime rate, the lower prision rate, etc will create millions, if not billions, of dollars of savings nationwide. It will also lower police pension costs since fewer police will be needed to terrorize young black males for smoking a joint.. I just started REAL solutions to fixing the states mess. Contact me and I'll give you my address to mail me my check.
HAve you any witnesses or data that quantify your increase in intelligence? (And,sorry,the ability to use caps isn't applicable.)
I looked at your "work" (which is an insult to the word) and is there anything NEW there?
Want to fix the states? Here's how:
1) Decriminalze MJ. Grow it and tax it for use in each state. Like the old state liquor stores. Creates jobs, creates taxes, keeps both in the state and reduces the power of the "drug cartels" they keep threatening us with.
2) Create state banks that DON'T make obscene profits everytime the state needs to borrow a nickel.
3) Audit all of the pension plans for the past thirty years and then "clawback" the bad investments the bankers got you to sink your funds into. It's not just that pension plans were deliberately underfunded the money was stolen.
4) By freeing up police to actually do their jobs again rather than chasing MJ the lower crime rate, the lower prision rate, etc will create millions, if not billions, of dollars of savings nationwide. It will also lower police pension costs since fewer police will be needed to terrorize young black males for smoking a joint.
There Dick. I just started REAL solutions to fixing the states mess. Contact me and I'll give you my address to mail me my check.
It's a shame that our federal government has forgotten that...for years.
Take for example the F22, the F 22 has not been used in a combat despite the initial introduction of this jet in 2005. The last of the 188 plains rolled off the assembly line in April of 2012. It has cost The United States more than $64 billion, more than double the initial expected cost.
Why are we spending money on this, when we aren't even using it? The answer to reducing the federal budget is a) stop unnecessary spending and b) finding a new source of income.
http://www.youtube.com/watch?v=czoLH2KEQ6E