‘Day of Reckoning’: Chris Christie Tackles Massive State Debt on ‘60 Minutes’ | The Blaze
Posted December 20, 2010on:
This is interesting. The Governor who is willing to tell the truth says the day of reckoning has arrived. California, Arizona, Illinois, New York both state and city, and of course New Jersey that Governor Christie is trying to get under control are so far in debt that it really is impossible to get to the bottom of it in most cases the debtors (states and cities) even know how much they do owe. The main problems seem to be the public employee unions, but other spending is really just as bad it is just that the unions are making the biggest fuss and are at this time unwilling to even discuss the problems with the governments.
When will the bubble finally bust? When will these states and cities finally hit bottom and go belly up? Some analyst say as soon as within the next 12 months. then it is predicted they will turn to the federal government for a bail out. Which means that the federal government will then have to borrow money toi bail out the states and cities. Considering the federal government is now borrowing $.40 of every dollar it spends it is difficult to believe they will do another round of bail outs. And beside that the facts are that when bailed out the states and cities just continue on the way they have been operating and this will just lead to another crisis down the line. What we need is fifty governors like Chris Christie and one President like Chris Christie. BB
Day of Reckoning’: Chris Christie Tackles Massive State Debt on ‘60 Minutes’
- Posted on December 20, 2010 at 9:08am by Jonathon M. Seidl
It could be the biggest crisis since the collapse of the housing market.
That’s how experts are describing state budgets, which are becoming so spend-heavy that municipalities are now drowning in debt and unrealistic spending obligations.
Here’s a taste: California now spends more on public employee pensions than it does on the state university system; Arizona has sold its state capital, supreme court chambers, and legislative building to private investors; and Illinois, which spends twice as much as it takes in in taxes, is months behind on Medicaid payments and some gas stations won’t even take State Trooper credit cards.
Those examples were included in a “60 Minutes” special on Sunday, which detailed the growing problem of mounting state debt. It’s a problem that includes blatant fiscal irresponsibility and borrowing money to delay what NJ Gov. Chris Christie calls in the piece the “day of reckoning.” The segment also features Meredith Whitney, one of the most respected women on Wall Street who once predicted the dismal housing collapse. In her mind, the state budget crisis will be just as crippling.
Business Insider calls the piece, “what everyone will be talking about today”:
Last week, the Manhattan Institute’s Steve Malanga called the state budget problem a “fiscal train wreck,” and compared benefits in the public sector to benefits in the private sector. In short, he confirms Christie’s call for cuts:
One big area of concern is employee costs, including not only pay but benefits. According to the governor’s association report, the average state worker now earns $39.83 an hour in compensation, including benefits, compared to an average of $27.49 in the private sector. The big differentials are in health benefits ($4.43 per hour in the public sector vs. $2.01 in the private sector), and in pension costs ($3.23 per hour in the public sector vs. 94 cents per hour in private industry). As the report noted, “To have any hope of achieving fiscal health in the future, states will need to redesign their benefit systems.”