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State Budget Disaster
July 02, 2010
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See the NY Times story State Budget Disaster

There is a mixture of politics and money in the air this summer. Should Congress reduce federal spending to start addressing the deficit and risk plunging the nation back into a recession, killing the recovery? Or, maybe the situation isn't that bad?

While states may have to "suck it up" and have more layoffs and eventually raise taxes to meet the needs of governing, doing so doesn't put the recovery at risk--or so some think. Both opinions are in the linked story.

Personally, I don't know what the right answer is. What I do know is this:

  • Many states have as much political gridlock as the federal government
  • Action will not come until there is a fiscal catastrophe for the organization
  • Taxes being raised will be the final step taken by any elected official in this current environment.
  • Citizens are going to be paying much more attention to their state and local government budgets and wanting accountability.
  • The costs of providing services and the pay and benefits going to government workers, including first responders will come under the microscope.
  • Emergency management is not immune from coming under the budget cutting knife
The end of the gravy train is near. One of the things the Gulf Oil Spill did was move other events off of page one to section B or C in the newspaper. Should a state announce that it is declaring bankruptcy -- that will be the tell tale sign of more bad news to come.

Bill Cumming shared the NY Times link.
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