Friday, March 12, 2010
States Scramble To Cover Expenses
Govts Need Fiscal Stimulus Exit Plan
NEW YORK (Dow Jones)--Calling government budget deficits unsustainable, a top Federal Reserve official on Thursday called on national leaders to start laying out plans that would allow a move back to more manageable spending levels.
"Just as there needs to be a credible exit strategy for monetary policy to anchor inflation expectations, there also needs to be a credible exit strategy from fiscal policy stimulus to anchor expectations about the risks of sovereign debt default," Federal Reserve Bank of New York President William Dudley said Thursday.
The first attempt at solving some of California's $20 billion budget deficit ended far short of the goal Thursday, as the Legislature adjourned its special session on midyear cuts to the state budget.
Illinois : Budget Woes Have Schools Expecting the Worst
In Elgin on Monday night, it is not going to matter who is bluffing, winning or losing in the heated debate under way in Springfield over the state’s gargantuan budget hole.
The legislature may argue for months over Gov. Patrick J. Quinn’s proposed $1.3 billion in education cuts and his plan to raise state income taxes, or they may ignore it. But school officials cannot wait.
New York: A Way to Bail Out New York
New York State is facing a $9 billion budget deficit in the coming fiscal year — a calamitous shortfall that is likely to get worse before it gets better. The state’s credit rating is at risk, and painful budget cuts are inevitable.
Chris Christie on N.J.’s budget crisis
GOVERNOR CHRISTIE: It's going to be painful, Pat, it really is. We have an inherited an 11.2 billion dollar budget deficit for next fiscal year. We'll be addressing that budget deficit in my speech on Tuesday and I will tell you it's going to be painful for all New Jerseyans. But I know that if we dig in and we fix our problems honestly now that we'll be in a position for economic growth as the economy recovers.
Hawaii's budget outlook gets slightly worse
HONOLULU -- Hawaii's projected budget deficit grew by about $50 million Thursday, a relatively small bump based on signs that the economy is stabilizing.
The state Council on Revenues, which predicts how the economy will influence tax collections, left its forecast unchanged for the current fiscal year ending in June, but it toned down its prior optimism about next fiscal year.
The highwaymen from Annapolis
With state lawmakers clamoring to find ways to reduce spending, it’s not surprising that Baltimore’s share of transportation aid has drawn attention like hungry lions eyeing a wounded zebra. But a proposal to cut $30 million in city aid, not to help balance the state budget but to enrich more affluent jurisdictions, demonstrates how nature’s carnivores have nothing on the predators in Annapolis.
Such blatant theft would surely make the Sheriff of Nottingham proud. Taking so-called Highway Users Revenue from Baltimore and giving it to the counties is nothing short of stealing from the poor to benefit the rich. With a potential $2 billion deficit looming next year, state spending needs to be cut, but that doesn’t mean legislators should be harder on the city than local governments with fiscal problems nowhere near so dire.