Bailing out the states
The next folks with hats in hand are the governors of the several states. And just like everyone else in line, the governors are not looking to correct their financial woes today. No, they are operating their states at near business as usual levels -- they are pushing their states to the abyss.
You see, there is no point in (say) Ohio correcting its acknowledged budget deficit today when a bailout is but months away. And there is no point going to DC with a need for anything less than a billion. Spend to today so that tomorrow's deficit is something to cry about.
To that end, and despite its current deficit and looming $7 billion hole, Ohio state officials still want "to move forward with a $125 million plan to provide bonuses for veterans since the Gulf War ..." Why face reality today when Uncle Sam will bail you out tomorrow?
Comments (3)
Axel Riemer
I saw something about that this morning as well, from the Wisconsin corner.
Gov. Doyle's press release:
"MADISON, Wis. (AP) -- Governor Jim Doyle says Wisconsin has plenty of company when it comes to major budget problems for the state government.
The governor says Wisconsin has a deficit projected to hit $5.4 billion by the end of the two-year budget cycle that starts next July. And he says 45 states represented at a meeting in Philadelphia with President-elect Barack Obama are in a similar situation.
Doyle says a federal bailout would help, but Wisconsin and other states still face deep, painful cuts in government spending.
He says any federal stimulus package to benefit the states should focus on such items as transportation, buildings, health care, unemployment compensation and the education system.
Doyle also says Obama did not talk in specifics about how much money may be in a stimulus package, or how much Wisconsin would receive."
more here:
http://www.wuwm.com/programs/news/view_news.php?articleid=4000
which contains this nugget:
...“What they’re trying to get out of it is stable employment", says Jim McGibany, an associate professor in Marquette University’s College of Business Administration. He says the strategy comes from a page of history in how America began recovering from the Great Depression by creating public works projects....
Published: December 3, 2008 8:46 AM
C. Evans
"...He says the strategy comes from a page of history in how America began recovering from the Great Depression by creating public works projects...."
I think there is a better chance that roaches will become extinct before this myth dies.
Published: December 3, 2008 11:30 AM
Brian R Gentry
I saw Governor Doyle debating Governor Mark Sanford of South Carolina last night on CNBC.
Of course, Governor Sanford was railing on the governors who support the bailout. The video can be found here:
http://www.cnbc.com/id/15840232?video=948289340&play=1
Published: December 3, 2008 3:49 PM