States keep up spending levels

[thundley4]

Despite warnings about steep budget cuts, state and local governments maintained level spending in 2009 as federal stimulus money came to the rescue, a USA TODAY analysis finds.
What happens when federal aid starts to wind down in 2011 is unclear. But states have avoided the disaster that loomed last year when their income and sales tax collections plummeted.

Though some programs were cut, overall state and local spending inched up 0.1% to $2.2 trillion in 2009, the Bureau of Economic Analysis reports. Revenue increased 0.9% for the year.

The federal stimulus package made the difference, pumping enough money into states, cities and school districts to offset a sharp drop in tax revenue. The fourth quarter was the best of the year as revenue climbed 2.6% because of a rush of stimulus money and a slowdown in tax declines.

"The timing of the stimulus bill was right," says Elizabeth McNichol of the liberal Center on Budget Policy and Priorities. "We were able to get money out when it was needed."

The stimulus bill will pump about $110 billion into state and local governments in 2010, an additional $65 billion in 2011 and $25 billion in 2012, estimates the Government Accountability Office. Some experts on state finances worry about what will happen when stimulus funds run dry.

USA Today

This shouldn't be worrying just the experts, it should be worrying to any sane person that pays taxes.  These idiots should have made cuts now, because tax revenues are not going to be increasing anytime soon unless tax rates are raised. 

[bkg]

They'll just raise taxes again. One of the beauties of being the gov't - you decide your spending level first, then worry about getting revenue.

Pawlenty is trying to drive a balanced budget COTUS amendment. He was promoting it on the radio recently when he filled in for Jason Lewis. He cites that a majority of states have one. Funny... MN is one of them and we're $1.8B in the hole. Posturing, nothing but posturing... just like most politicians. States will not stop spending any time soon.

[NHSparky]

The second they pass an income or broad-based sales tax here, I'm very seriously considering moving.  That and the Democrats will once again revert back to redheaded stepchild party in this state.

[bkg]

The second they pass an income or broad-based sales tax here, I'm very seriously considering moving.  That and the Democrats will once again revert back to redheaded stepchild party in this state.

 

I hate to say it... but when you're born into an ass-raping, and know no better, you fight for nothing better.

You have a lot to lose - keep up that fight. MN tried to ban the mortgage deduction for people over $67k (or was it 69K)/year. Apparently the "rich" aren't paying enough. Keep up the defense!

[NHSparky]

We need look no farther than our neighbor to the east, Maine--highest state and local tax burden in the nation.  And what do they get for it?  Paved roads that are WORSE than dirt ones.  Shitloads of government employees who soak the tourists (think Fish and Game wardens every 10 feet) and locals alike.  A state with a DECLINING population, who for the first time in 200 years, is expected to have a LOWER population than New Hampshire--and THAT takes some doing.

[docstew]

They'll just raise taxes again. One of the beauties of being the gov't - you decide your spending level first, then worry about getting revenue.

Pawlenty is trying to drive a balanced budget COTUS amendment. He was promoting it on the radio recently when he filled in for Jason Lewis. He cites that a majority of states have one. Funny... MN is one of them and we're $1.8B in the hole. Posturing, nothing but posturing... just like most politicians. States will not stop spending any time soon.

As long as that amendment states explicitly that budgetary shortfalls must be made up by cutting spending and cannot be covered by raising taxes, I'd go for that.  Hell, I'd also support an amendment making tax increases require a 2/3 majority and/or a special election of every member of Congress to be held the day after the tax is paid.

[The Village Idiot]

Just keep on spending. Don't worry. There is never going to be a problem. You can avoid the Noid forever.