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Old 07-01-2009, 01:46 PM   #1
Fire Haley
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Default Multiple states on verge of economic collapse

SACRAMENTO, Calif. — Legislators in more than a half-dozen states, their revenues evaporating in the recession, frantically worked to stave off government shutdowns and devastating service cuts. California failed to meet a midnight deadline and now may need to issue IOUs instead of paying bills.

Across the country, lawmakers were feeling the heat as their legislatures began the new fiscal year without a budget in place.

In Illinois, the sputtering drive to come up with a state budget broke down completely Tuesday, leaving the state without any plan for paying its employees or delivering government services. The session ended without any firm plans to return or even for Gov. Pat Quinn and legislative leaders to resume negotiations.

In Pennsylvania, talks between Gov. Ed Rendell and top legislators ended Tuesday night with no substantial progress, aides said. Rendell said he didn't think an agreement would come soon. The state faces the prospect of not being able to pay state employees if they cannot resolve an impasse.

Arizona, Indiana, Ohio, Connecticut and Mississippi also were among the other states that raced against the clock to pass budgets _ and avoid crippling consequences

Ohio on Tuesday passed a seven-day spending plan that will allow the state to keep operating while talks continue, the first temporary budget Ohio has been forced to approve in 18 years. On Wednesday, the House was considering a second seven-day budget to give lawmakers more time.

Indiana narrowly averted a large-scale government shutdown after coming to terms on a budget.

Mississippi lawmakers approved most of the $6 billion budget, but left one agency _ the state's utility regulatory agency _ unfunded. The Public Service Commission said it didn't know how the agency would continue to function, but Gov. Haley Barbour has said he can run the agency by executive order.

In Connecticut, Gov. M. Jodi Rell signed an executive order to keep the government running without a two-year budget in place. While she contends the average taxpayer won't notice any change, municipal officials fear delays in state grants that fund everything from road repairs to education.

In the wee hours Wednesday, the Arizona Legislature completed action on budget bills to implement most of a compromise $8.4 billion budget negotiated with Gov. Jan Brewer. Lawmakers omitted a sales tax increase that Brewer wanted, and her spokesman declined to say if she would sign the bills.

In Pennsylvania, state workers will receive only partial pay on July 17 and July 24, after which paychecks will be withheld entirely until the impasse is solved. They will then be paid retroactively.

Rendell said 10 banks and credit unions have agreed to help 69,000 state employees by offering them low- or no-interest loans and lines of credit.

In most states, the debate centers around whether states should be raising taxes to bridge the budget gaps. California Gov. Arnold Schwarzenegger said he wouldn't sign anything that raised taxes or fees beyond what he has already proposed.


http://www.huffingtonpost.com/2009/0..._n_223684.html

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Old 07-01-2009, 02:08 PM   #2
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Default Re: Multiple states on verge of economic collapse

Obaama's going to bail out cali, then watch as the rest of the states get in line. And here you thought you'd have some money left over after payday. Change we can believe in.

They'll start bailing out states and that will put the state under the government thumb just like the banks, gm and chrysler.
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Old 07-01-2009, 02:58 PM   #3
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Default Re: Multiple states on verge of economic collapse

You notice all those state govt's are begging to raise more taxes to keep their pockets full.

WE have no state sales tax and things are running fine.
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Old 07-01-2009, 03:29 PM   #4
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Default Re: Multiple states on verge of economic collapse

Quote:
In Pennsylvania, talks between Gov. Ed Rendell and top legislators ended Tuesday night with no substantial progress, aides said. Rendell said he didn't think an agreement would come soon. The state faces the prospect of not being able to pay state employees if they cannot resolve an impasse.

In Pennsylvania, state workers will receive only partial pay on July 17 and July 24, after which paychecks will be withheld entirely until the impasse is solved. They will then be paid retroactively.

Rendell said 10 banks and credit unions have agreed to help 69,000 state employees by offering them low- or no-interest loans and lines of credit.
Gee - what a shocker. NOT.

They'll just increase the cigarette tax again.
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Old 07-01-2009, 06:37 PM   #5
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Default Re: Multiple states on verge of economic collapse

Feds are taking over - Nationalize everything!

SACRAMENTO, Calif. -- The California governor's office says federal officials are threatening to seize six state parks if they are closed to help balance the state's budget.

Gov. Arnold Schwarzenegger has proposed closing 220 state parks.

But the National Park Service warned in a letter to Schwarzenegger that six of those parks are on former federal land that could revert to the U.S. government if they are not kept open as parks
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Old 07-01-2009, 06:46 PM   #6
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Default Re: Multiple states on verge of economic collapse

i thought huffington post articles were not allowed.

Quote:
Rendell said 10 banks and credit unions have agreed to help 69,000 state employees by offering them low- or no-interest loans and lines of credit.
talk about a double slap in the face. (especially considering all the banks who have been bailed out and are sitting on their bailout money).

im guessing the state wont be paying interest on the retroactive pay?
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Old 07-02-2009, 08:50 AM   #7
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Default Re: Multiple states on verge of economic collapse

This is an easy one, and requires some common sense (which means my solution will NEVER be enacted!).

Take the percentage of the budget that your state is over (say, In Ohio's case, it's 8%). Do a simple, across the board cut of 8% in EVERY department. In any government office, I'd say you probably have about 30% TOO many workers doing too little work. Then do temporary lay-offs of however many people you need to do in each department to make up the shortage.

Now, if we had some time, I'd say an auditor could probably come in and find ways to save 30-40% in each and every department, as the government is a model of inefficiency, and it's entrenched inefficiency. However, we don't have time for that, not to mention the fact that the government has become this countries largest employer, so this would create a dramatic spike in unemployment.
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Old 07-02-2009, 08:19 PM   #8
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Default Re: Multiple states on verge of economic collapse

Maybe California could quit cutting checks to ghetto girls who ride around in new Cadillacs with their 3 inch nail manicured hands hanging out of the window during normal working hours kind of thing while honest people are busy trying to make a living paying for their $1000.00plus 1 bedroom apartments in that horrible effing state. No wonder they are broke, I wish they would break right off into the ocean, I have NO sympathy for California or anyone living there. None. I couldn't get out of there fast enough. It's a beautiful state but the mentality there made me sick.
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Old 07-02-2009, 08:41 PM   #9
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Default Re: Multiple states on verge of economic collapse

The funny thing about living here in California, is that everyone wants to pay no tax, but want all the govt. benefits.

it is unbelievable. Then, try to get a straight answer from the govt. on something. There is no one you can call. No one you can speak to, no one that can give you an answer.

it is an absolute joke.

Then everything is regulated... If they would simply cut HALF the regulations and the jobs of those who run those offices, my suspicion is that we would be out of debt in six months.
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Old 07-02-2009, 08:44 PM   #10
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Default Re: Multiple states on verge of economic collapse

Just out of curiosity, what is the tax rate in Pennsylvania these days?
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