Budget woes in the states

Posted: Thursday, July 02, 2009 5:57 PM by Mark Murray
Filed Under: States, Economy

From NBC's Alex Beinstein, James Rankin, and Katelin Schartz
The economic recession has not only hurt individual Americans across the country; it has also negatively affected state governments, which must balance their budgets.

June 30 was the end of the fiscal year for most states, and here's a round up of headlines -- in the last couple of days -- that shed light on the challenges they're facing:

Alabama
“Recession Delays Alabama Tax Refunds”
120,000 Alabama taxpayers will have to wait for their refunds due to declining revenue.

Arizona
“Brewer Rips Budget, Calls Special Session”
Arizona lawmakers pulled an all-nighter to avoid a government shutdown.

California
“California Ready to Issue IOUs”
California’s epic budget meltdown is grabbing national headlines and forcing the state to print IOUs to residents waiting on income-tax refunds

Colorado
“Colorado Crisis Worst Since Depression”
Colorado is accustomed to boom-and-bust economics, but analysts say this budget crisis is the worst the state has seen in a long time.

Connecticut
Gov. Rell Vetoes Democrats' Budget Proposal

Delaware
“House OKs a Dozen New Tax Initiatives”
Reluctant lawmakers passed a slew of new taxes in order to make up for the states deficit.

Florida
“Florida Drivers, Brace for Impact on Your Wallets”
Florida is trying to close budget deficits by increasing registration and licensing fees for automobiles.

Georgia
It's the start of the new fiscal year, but that only means more challenges for Governor Perdue and legislative leaders when it comes to a balanced budget.

Idaho
“Idaho Ends Fiscal Year with Balanced Budget”
Gov. Butch Otter praised legislators for “making tough decisions” which allowed the state to end its fiscal year without a deficit.

Illinois
“State Budget Vetoed”
The Governor of Illinois has vetoed the budget sent to him by state legislators, saying it would cut vital services.

Indiana
“Budget Brings Good, Bad News for State Schools”
Centrist Democrats joined Republicans in creating a two-year budget that has angered many education advocates.

Iowa
“Iowa Dips into Savings to Balance its Budget”
Iowa’s will have to tap into its cash reserves in order to meet requirements set by its balanced budget law.

Kansas
Governor Parkinson Announces Plan To Balance Kansas Budget

Louisiana
“State Budget Year Begins with Cuts”
Louisiana faces steep budget cuts, but not as much as Gov. Bobby Jindal had hoped for.

Maine
State Budget Woes Leading to Court Delays

Maryland
Spending will actually decline next year

Massachusetts
State budget disappoints local lawmakers

Michigan
Bankruptcy may be next for Detroit schools deficit and is considering filing bankruptcy.

Minnesota
Unallotment could leave $7 billion problem in two years
http://www.grandforksherald.com/event/article/id/124834/

Mississippi
Mississippi legislators beat midnight deadline by approving $6 billion budget

Missouri
Missouri currently has a 25-year high employment rate, and this new plan will mean almost 1500 more jobs will be lost when the new program takes effect July 1st.

Nebraska
NU Budget Proposes 4 Percent Tuition Increase

New Hampshire
Budget process most challenging in history for legislators

New Mexico
Governor to cut 470 salaries

North Carolina
N.C. Budget Failts to Draw Consensus

Ohio
Ohio House Passes seven-day temporary budget extension while slots plan remains blocked

Oklahoma
“Oklahoma City schools approve $603M budget” – NewsOK:

Pennsylvania
“It must be time for the state budget impasse”
For the seventh year, Pennsylvania reigns in a new fiscal year without approving a budget.

South Carolina
“State parks weather economic slump; Visitors, revenue strong despite the recession”

South Dakota
“Pierre schools narrow down budget”

Washington
“Another $250 million caseload hit to Washington budget”
The economic recession is causing more people to seek public assistance, which has the state considering taping “The Rainy Day Fund” intended to be used during emergencies. The fund has a balance of $250 million.

West Virginia
“Budget year ends on hopeful notes”

Wisconsin
“State budget includes spurs to technology”
The new state budget put more than $10 million toward investment in Wisconsin’s technology economy. The budget will seek to reduce the deficit by raising $2.1 billion in taxes over the next two years, spending more stimulus money, and cutting state spending and reducing aid for schools and government.

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Comments

California issuing IOU's.

That's real rich.

Just run the state tax up to 15% for a few years and things will be fine.

Peter Percival Patterson (Sent Thursday, July 02, 2009 6:20 PM)

Arizona sucks............Moved here from Washington for my job and I am shocked. No transportaion system
Lower pay and the Senator x presidential candiadate could care less

Mishka Mehrens Mt (Sent Thursday, July 02, 2009 6:20 PM)

But, but, but, didn't Obama save the states with all that money from his stimulus bill?

PS, you left off Illinois, where the checks will start bouncing in about a week, government workers are getting 2-3 furlough days a month, and the new Democratic governor just cannot wait to raise income taxes, but it's kind of hard to understand on who, because Illinois unemployment now exceeds 10%.

Grishom, Chicago IL (Sent Thursday, July 02, 2009 6:34 PM)

Go Palin!

Nicholas: Minnesota (Sent Thursday, July 02, 2009 6:51 PM)

Sen. Chuck Grassley doesn't know the deductible amount he pays on his nice federal (public) healh care plan….Elitism

http://www.huffingtonpost.com/2009/07/02/sen-grassley-if-you-want_n_225258.html

Time to get real and extend what members of congress give to themselves….Public Plan

wal (Sent Friday, July 03, 2009 12:51 AM)

Isn't it wonderful? The Republican Mantra of "No Taxes" over the past 20 years, and particularly the past 8 years has worked well for the states I think. Yes, lets give the base what they want...as little taxation as possible on their ceo bonuses and seccond homes.

Fast forward 20 years. Arnie Schwarz would rather hand out IOU's in California and take the state bankrupt...rather than have everybody pay a little more in state taxes. So, when nobody is paying a little more, EVERYBODY pays in financial collapse, lost jobs, pay cuts, horrible schools, and medical debt. People out of work collect unemployment and food stamps...and WE ALL PAY FOR THAT.

It's a simple concept really. It's called SOCIAL RESPONSIBILITY! Pay attention Republicans, this might confuse you...SOCIAL RESPONSIBILITY means you stop blaming all of the country's woes on other people, on the poor, on those with medical problems, on the DEMOCRATS and take a little responsibility yourself...in paying a little taxes, doing your share of taking care of your country as a whole. Perhaps you could talk yourselves into it if you think of it as PATRIOTISM!

Like roads? bridges? schools? hospitals? police and firefighters?...PAY YOUR TAXES AND QUIT WHINING ABOUT IT! Sheesh...this isn't rocket science, it should be rather obvious at this point.

Michelle, military wife in Germany (Sent Friday, July 03, 2009 6:35 AM)

IT APPEARS THE TIME HAS COME TO DOWNSIZE ALL STATE GOVERNMENTS AND REDISTRIBUTE ALL TAX DOLLARS TO LOCAL COUNTIES AND CITIES WHICH APPEAR TO SPEND TAXPAYERS DOLLARS MORE WISELY.

PAUL CHAPMAN , CAMARILLO CALIFORNIA (Sent Friday, July 03, 2009 6:49 AM)

why do you think were in this mess...Government and states cant control there spending and when this happens it the taxpayer who has to bail them out.....if you cant live within your budject then get some one who can...Fed up with listening to short fall in revenue when you cant control your spending...Shut down. cant be any worse off than we are now........

Russell Fox Wells, Me (Sent Friday, July 03, 2009 8:40 AM)

The deal with many of these state budgets is that they spend money on programs to benefit the few, at a cost for all.

The other problem is that in any government, there will always be 5 people doing the job of one person in private industry. Let's not even mention the patronage jobs.

California provided insight into the mindset of many citizens. Let's have all these wonderful programs; just don't ask us to pay for them.

Many programs get the thumbs up from people, however, the taxes to pay for them get thumbs down. It's really simple. The voters in California knew what was on the line when they voted-they voted for spending cuts.

Why in the world don't politicians understand this? I suppose campaign contributions don't pay any roll at all, do they?

no joe, no bo, nj (Sent Friday, July 03, 2009 9:11 AM)

I realize the states are hurting but I have yet to see my state make any serious cuts within the government. We all know of waste, duplication, lack of performance, unreasonable and undeserved perks,retirements etc yet have not seen any of those addressed. Our politicians could cut their staffs, reduce expenses and retirments for everyone needs to be readdressed and brought down to reality.
Until they do this than they cannot be taken seriously.

katiec (Sent Friday, July 03, 2009 9:26 AM)

The primary reason for these country wide defict disasters is the bilking of the taxpayer by democrat politicians in league with the public employee unions.It is indisputable. Banking on the ignorance and lack of awareness of most voters(this is a nationwide problem) the dems have traded the financial well being of the states for political campaign support, monetary and volunteers, and thereby virtually assuring themselves election to office. This collusion with public employees is also found among republicans but to a much lesser extent. States and indeed the Federal government will never be finanacially sound as long as this continues. The cycle of public employee influence leading to higher wages and benefits not to mention the problem of public employee overstaffing (featherbedding is the old union term which is still operative)has been the stone around the neck of economic growth and prosperity for the average private sector worker. California is only the most egregious example of this syndrome but it exists in most states with the deep blue states invariably in the worst condition. It will take an awakening by the taxpayers to the fact that the public employees have made themselves the economic enemy of the rest of the population for this situation to be reversed.We need people of honor in both major parties to step up to the plate and confront this insidious bargain and dismantle this system.A substantial part of the Obama stimulus program is intended to bail out these profligate dem controlled states. In other words you and I get to bail out the employees of other states that have shown zero discipline through our federal taxes.

Paul (Sent Friday, July 03, 2009 10:18 AM)

Trickle down Obama economic failures hits everyone as America asks where's all the jobs he promised?

That's The Truth (Sent Friday, July 03, 2009 10:47 AM)

This is purely a States Rights Issue, and is not a financial concern of the Federal Government. The states are responsible for the daily, weekly, and yearly operations of their state budgets. The Governors of these states are solely responsible to be good economists for the interests of their states. So to the GOP/RNC racists out there! This is NOT the fault of President Obama! Hey! Hey! Ho! Ho! The party of no has got to go!!

Rock, Janesville,Wisconsin (Sent Friday, July 03, 2009 6:51 PM)

Thank you, South Carolina, for making my state not look so bad this past week. I'm from West Virginia and usually we get a lot of bad press because we are labeled "hillbillies and rednecks". Gov. Sandford certainly took care of that for a while.

JoAnn, Moundsville, WV (Sent Saturday, July 04, 2009 1:27 PM)

do not forget that Gov. Granholm in Michigan has requested that Arnold send his prisoner overflow to Michigan prisons for a fee.She is emptying our prisons because we cannot afford to pay for prison upkeep.This govornor is full of surprises to blow us away.Wish that she would follow Palin by stepping down.At least Palin is not thinking of bringing the worst of the worst to her state.We do not have enough police in the streets and this dimwit wants more criminals here.

poor michigander (Sent Saturday, July 04, 2009 4:52 PM)

Where's NJ? The only bright point is the tax amnesty bill netted more than first thought. That is a one time stop gap. There is going to be likely programs cancelled and people fired from state government over the course of the next 18 months. Does that mean NJ is stable -- not a chance.

S.B. Stein E.B. NJ (Sent Sunday, July 05, 2009 10:46 PM)

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