Blue-state budget crises spell more trouble for Democrats

The Washington Post ^ | 12 November 2010 | Michael Gerson

[Senator Goldwater]

Following the midterm elections, attention understandably focused on those parts of the South and Midwest where the Obama coalition collapsed. But a second wave of trouble is coming for the president and his party, precisely in those states where the first wave barely reached. Having experienced the revolt of red America, Democrats must now deal with the fiscal crisis of blue America.

While massive state budget shortfalls are not limited to predominantly Democratic states, they are concentrated in them. "In California and New York," says John Hood of the John Locke Foundation, "the fiscal crisis flirts with bankruptcy. All the major sources of revenue have cratered."

The states doing worst are the ones, such as California and New York, that had irresponsible budgets going into the recession. States that were fiscally responsible during good economic times, such as Indiana, have had a softer landing.

But now comes the reckoning. After the economic panic of 2008, a number of states hiked taxes as an emergency measure. But with Republicans in the midterms electing their highest total number of state legislators since 1928, even Democratic governors will think twice about proposing tax increases.

What are the political effects of the blue-state budget crisis? In Washington, it will set up a conflict between desperate governors and the new Republican House. States will seek federal help and pressure their congressional delegations for support. But there is little chance that conservatives will add a new state bailout to all the bailouts that have come before. Any additional economic stimulus would probably be in the form of tax relief, perhaps a payroll tax holiday, not in cash payments to state governments.

[Senator Goldwater]

Start with breaking the backs of the public unions.

[ari-freedom]

More states with GOP governors and legislatures means better fiscal policies for those states. But that will put an even tighter squeeze on the blue states and suck out their jobs even faster.

[trumandogz]

Texas will have a budget shortfall of only 25 Billion Dollars.

[teletech]

Here in The Peoples Republik of Illinois we have been circling the drain for while. More example of blue “leadership” in action.

[American Constitutionalist]

Not only break the backs of the unions, de fund and dismantle the Department of Education where the teacher’s unions get their money funneled through, and make all those states right to work states.

[OrangeHoof]

States like California, Massachusetts, Michigan, New York and Illinois are the most corrupt, bankrupt states in the country and yet it is people from California, Massachusetts, Michigan, New York and Illinois who think they know best how to rescue the economy when it’s clear from their own state governments that they are the worst possible people to be put in charge.

That’s been the idiocy of our federal government since 2006.

[kearnyirish2]

“Not only break the backs of the unions, defund and dismantle the Department of Education where the teacher’s unions get their money funneled through, and make all those states right to work states.”

Here in NJ our governor has presented the people with a stark choice: either destroy the teachers’ unions, or all of the taxpaying Americans will leave. I hope it isn’t too late already...

[Pollster1]

While massive state budget shortfalls are not limited to predominantly Democratic states, they are concentrated in them. "In California and New York," says John Hood of the John Locke Foundation, "the fiscal crisis flirts with bankruptcy. All the major sources of revenue have cratered."

I believe that is called bad luck, when the most liberal states happen to run into much bigger budget problems than their conservative neighbors.

[mrspeelwerneeded]

This example is an election issue to be used to show the effect of Demonrat policies.

[Lysandru]

Good reply.

If freakin' New Joisey can get the clue, why can't New Yawk and Calipornia?

Folks, I am really scared about the future of this nation and the entire world right now.

[kearnyirish2]

“Folks, I am really scared about the future of this nation and the entire world right now.”

Everybody is; that is why the people that “do” will either abort/contracept/bomb the people that “don’t” into oblivion, or the species goes the way of the dodo...