And So I Go: Yesterday, Today and Tomorrow

Posts Tagged ‘Arizona

‘Day of Reckoning’: Chris Christie Tackles Massive State Debt on ‘60 Minutes’ | The Blaze.

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

13:51 Added to queue State Budgets: Day of Reckoningby CBSNewsOnline338 views

Day of Reckoning’: Chris Christie Tackles Massive State Debt on ‘60 Minutes’

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.”

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Report: 10 states face looming budget disasters – Yahoo! News

Not much to say here as the writing is as they say “on the wall”.  The 10 states that together are our most populous and therefore have the most to lose in a down turn as far as jobs and productivity are concerned now find themselves on the ropes.   These states account for more than 1/3 of the nations economic output and population. That much of their problems have to do with the same problems the federal government has, bloated government employee rolls and to many and too generous  entitlement programs,  is not surprising.

California’s ongoing fiscal crisis has attracted national attention, but a study warns that nine other states are barreling toward similar economic disaster.A report released Wednesday by the Pew Center on the States says Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin also are at risk of fiscal calamity.

That could mean higher taxes, more layoffs of government employees, increasingly crowded classrooms and fewer services in states that account for more than one-third of America’s population and economic output.

Another thing that will not be surprising will be the federal governments rush to bail these states out of their problems thus allowing them to go their merry ways without making the cuts in government employees and  social services that have to be made.  The Obama administration is desperate to stop the  rise of unemployment so that they can continue to claim the Stimulus  bill “saved” jobs so it will be paramount to the administration not to allow these states to cut back on the employee rolls.

Now there  will of course be cut backs on education and cut backs on services offered, but they will keep the same number of government employees sitting around handling fewer cases and doing less work.  And neither will the federal government nor the state governments  insist  the union members, Service Workers International Union (SEIU),  give up any of their lucrative benefits in order to keep their jobs.  If you will remember   SEIU’s Andy Sterns was once of the people President Obama proudly claimed he spoke with about health care legislation.  SEIU also  gave Obama’s campaign hundreds of millions of dollars in workers union dues  to buy this kind of largess with the rest of the tax payers money.  I would also like to make clear that the tax payers whose money I am speaking of are  too young to be paying taxes yet  or have not even been born yet because the THE FEDERAL GOVERNMENT DOESN’T HAVE ANY MONEY!  We the people are paying our bills with money borrowed from people who save their earnings in China and India and Japan.

As my father would say, we are going to hell in a hand-basket!  BB


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