Americans Face State and Local Service Cuts if Fiscal Cliff Talks Fail (Video) (What BS)

Yahoo Finance ^ | November 30,2012 | Bernice Napach

[Hojczyk]

When state governments suffered big revenue losses during the Great Recession, the federal government came to the rescue with $150 billion in stimulus funds that saved jobs, repaired roads and maintained health care services. Now, almost four years later, states risk losing billions of dollars in block grants if no fix is found for avoiding the billions in spending cuts and tax hikes set to take effect next year.

"These block grants are a prime target for cuts," Meredith Bagby, resident fellow at the Harvard Institute of Politics, tells The Daily Ticker. "Citizens will be greatly affected if these block grants are cut too deeply."

The cuts will affect state education, police, health care and infrastructure spending. Cities--especially smaller cities—are the most vulnerable because they rely on state block grants for 34% of their revenues, according to Bagby.

The block grant cuts couldn't come at a worse time for state and local governments. Facing a $55 billion shortfall in the current fiscal year, many states have already slashed spending for education, infrastructure and other services in order to balance their budgets, which is mandated by law. But that had no effect on the $7 trillion in debt and unfunded liabilities they've accumulated over the years.

Cuts to education could be the cruelest of all, says Bagby.

"The more education you have the better you'll do in the economy," says Bagby. The corollary is also true. Government statistics show the unemployment rate for those who finish college is half that of those who never went to college.

[Hojczyk]

Can Americans seek shelter in Canada??? More Harvard BS

[Tennessee Nana]

Americans Face State and Local Service Cuts if Fiscal Cliff Talks Fail
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Americans wouldnt suffer as much as the illegal aliens and their anchor babies would...

[JRandomFreeper]

The cuts will affect state education, police, health care and infrastructure spending.

Those cuts never seem to affect the diversity office, the arts council, or code enforcement.

/johnny

[Obama_Is_Sabotaging_America]

That statement was designed to agitate the unions.. ‘education, police, health care and infrastructure’ are ALL buzz words for ‘UNIONS’.

[skeeter]

Good news. Thanks Yahoo! you made my day.

[Valpal1]

Those cuts never seem to affect the diversity office, the arts council, or code enforcement.

Truer words were never spoke.

Kick people off the dole and gut regulators and there would be an economic boom as previously idle and undegreed people figured out ways to make a buck while not being suppressed by the official do-gooders with a degree and a government sinecure.

[Tzimisce]

Sooner or later we’re going to collapse.

The only question now is exactly how much money are we going to owe when this government crashes.

[vette6387]

“The cuts will affect state education, police, health care and infrastructure spending. Cities—especially smaller cities—are the most vulnerable because they rely on state block grants for 34% of their revenues, according to Bagby.”

The problem is that 34%! These “cities” have had a champagne appetite on a beer income. We need to start having orderly bankruptcies in these places to correct the excesses the “city fathers” have allowed. It’s time to hit the reset button in a very big way!

[blueunicorn6]

Written by an educator at Harvard who is afraid education funds might get cut. When people like this start screaming, you know the blows are landing where they should.