Skip to comments.Higher Taxes, Layoffs, And Service Cuts: The State And City Budget Crisis Is Here
Posted on 06/30/2020 9:56:59 AM PDT by 11th_VA
The recession is hitting state and city budgets hard in the new fiscal year that starts on July 1. They are responding by firing workers, reducing services, and even increasing taxes. Massive federal aid is the only real solution.
The new fiscal year for 46 states and many cities begins on Wednesday. And a flood of red ink caused by the deep pandemic recession is forcing them to fire workers, reduce spending and services, and even raise taxes (one of the worst things you can do in a recession). Without Congress providing up to $1 trillion in federal aid, non-federal government spending will shrink. This hurts not only public services but the entire economy, and makes the recession longer and more painful.
The budget problem is widespread and deep. According to Dan White at Moodys Analytics, average state general revenues will suffer an annual fall between 14.8% and 19.5% this fiscal year. Losses vary widely across states, but in Moodys severe forecast, the smallest state reduction shows Pennsylvanias general fund revenue falling by 8.2%. Other states are projected to take bigger losses: 11.9% in Arkansas, 34.7% in New Jersey, 45.7% in Louisiana, and a whopping 79.6% in Alaska, which depends heavily on collapsing oil revenues.
...Moodys now finds that an unprecedented 34 states would see budget gaps (in the new fiscal year) of 10% or more even after using all reserves.
(Excerpt) Read more at forbes.com ...
“Massive federal aid is the only real solution.”
Du Phuk you say.
If there is less demand for services, then throwing money to keep givernment employees on the payroll isn’t the solution.
Givernment needs to contract just like private businesses do when there is less demand.
You did yourselves and the citizens of this country by scaring everyone away from their offices.
All those employees not going into the offices of San Francisco will not be dining at restaurants in the ares nor shopping at retailers nearby.
Just say goodbye
Massive federal aid is the only real solution.
Isn't that what they always say?
Didn’t we all see this coming for 40 years now ?
We’ve been in the eye of the storm and the other side is teh ecoomic one.
And if they all get their bailout from the FedGov, expect massive price inflation. Hold on to your precious metals.
The federal government simply doesn’t have the money. Didn’t these idiotic localities have a rainy day fund for such events?
SPEND LESS. EVERY American family reality.
Listen to this wad of fk. He just declares out of state families subsidize their 6 figure pensions, political gluttony and illegal alien free-bees.
State finances are not unlike household finances. Wise people don’t live on debt and they prepare ahead for difficult days. That’s a bit too complex for collectivists.
As bad as it is and as bad as its going to get, not one puke politician in this nation will miss a paycheck. Why is that? Answer; Sheeple!
Except for my wife!
Gub mint employees might lose their worthless accomplish nothing jobs?
Maybe state legislatures can pass laws (or constitutional amemdments) allowing them to declare bankrupcy. Or just issue bonds.
“when they started locking down, that if we cannot buy and sell, produce and consume, work and receive wages”
The slowdown is caused by government regulations.
Keep in mind come November that ultimately government is we voters.
Partisan Media Shills update.
Something to watch closely - and could drastically affect the precious metals markets.
It's not just the current salaries.
It's also the pensions. Billions upon billions in state pensions.
Very, very, very expensive pensions. Pensions that certain courts have deemed untouchable, but the reality is now that many states don't have the money to pay them. At all.
That could crash the whole shebang.
Those who are trying to defund police departments may get their wish. As well as fire departments, schools, roads, prisons, etc., etc.
Yep. I saw that. People forget that tungsten weighs almost exactly the same as gold and China has been cladding it with real gold and selling it as real gold for well over a decade. That’s why I’m not a fan of gold. Junk silver is my precious metal of choice, or very small gold coins.
And if we don’t get many more people to vote Republican, the various levels of government will tax us all to death next year.
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