Think the Economy Is Bad? Wait Till the States Cut Back

http://www.nytimes.com/2008/06/01/weekinreview/01uchitelle.html


-snip-

State and city governments have yet to shrink the economy; indeed, they have even managed to prop it up. They have quietly maintained their spending at pre-crisis levels even as they warn of numerous cutbacks forced on them by declining tax revenues. The cutbacks, however, are written into budgets for a fiscal year that begins on July 1, a month away. In the meantime the states and cities, often drawing on rainy-day savings, have carried their share of the load for the national economy.

-snip-

“We are looking at a $4 billion cut to public schools and deep cuts that will result in thousands of Californians losing their health care,” said Jean Ross, executive director of the California Budget Project, offering a preview of coming hardships. “But the reality is we have not pulled money off the streets yet.”

-snip-

No state seems more vulnerable than Florida, with its plunging home prices and slashed property-tax assessments, not yet on the books but soon to be. In anticipation, the legislature in May approved a $66.5 billion budget for the coming fiscal year, down from $72 billion in the current one.

Schools are a target, said Michael Sittig, executive director of the Florida League of Cities, “but none has been hurt yet. Nevertheless, everyone is scared. Everyone is in the mode of trying to figure out how to get through next year” — starting 30 days from now.
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When sanitation, water, and public safety get cut, we're all in trouble--and it's just around the corner.

it was a week last year. this year they are saying 2 weeks. that is a paycheck i can't afford to lose. i have a few paychecks to put a little extra away. that is all i can do.

nt

even though little cracker boxes like mine are still selling briskly. The city just has an oversupply of big barns built for speculators while it has a shortage of small single family houses.

McMansion prices are down a good 20% across the board. Houses like mine have continued to appreciate very slowly, about 5% over the last 3 years.

However, the McMansions, while generating the largest profit margin for the builder, also generated the largest tax revenue per square mile. This is going to hurt the county, especially.

and not replacing our retirees. they cut out several offices in trenton. they are going to try to do it with attrition. we'll see.

Tennessee is going to be deeply hurt. I'm hoping this will wake people up to offsetting the sales tax with flat income tax.

State job cuts possible in Tennessee


Associated Press - May 7, 2008 10:23 PM ET

NASHVILLE, Tenn. (AP) - More than 2,000 state jobs are being cut in Tennessee.

Governor Phil Bredesen says the 5% reduction in the state work force would trim about $64 million out of an expected $468 million budget shortfall.

He says most of the cuts will come through voluntary buyouts.

snip

More than half the states are experiencing budget shortfalls. Under state constitutions, most can't borrow money or run a deficit. That means governors and legislatures are cutting spending, eliminating jobs or imposing hiring freezes to close the gaps.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

http://www.wistv.com/Global/story.asp?S=8287383

He also said supermarkets will be selling off or closing their gas pumping services.

He's been on the money on a lot of predictions.

He said the rationing could start as soon as late June.

The cutbacks won't happen until after the election, therefore everything will be the Dems fault.

:shrug:

They'll try it of course, but I don't think the people are in any mood to keep blindly believing and swallowing these stories of blame.

Vetrans Admin employees, State Gov employees, contractors for government agencies etc.

It's happening right now and we will see the impact clearly very soon on a national level.

This is a REPUBLICAN ECONOMY without a doubt.

Iraq is a REPUBLICAN WAR.

on us. 1 and 2 also fucked the states. We are getting less for our tax dollars so Halliburton and Blackwater can rake in billions.

done irreparable harm to the economy. Stores are not restocking. They are IMO preparing for the worse/depression. It's eerie driving through town. Eerie.:scared: :scared: :scared: :scared:

we have miles of unused office space, retail and commercial buildings sitting vacant, but the powers to be are going to force us to spend about 450 million dollars to move the freaking rays 16 blocks and build a new stadium on our waterfront due to the vibrancy of the downtown (whatever the hell that means). Life is grand

uber-rich. We are stuck, in economic quicksand, sinking, we're sinking. We Are STUCK.