As more tax revenue reports roll in, projections for the state budget hole continue to worsen.
planned spending. The cuts announced Thursday provide $1.1 billion toward
filling that hole. She is banking on another $900 million from the federal
government that will go primarily toward Medicaid.
The $2 billion estimate is up from $1.6 billion just a couple of months ago. And that is not even counting the $300 million hole in the state health plan.
But don't shed a tear for legislators and bureaucrats as they scramble to make "cuts" in order to balance the budget. Consider the following:
- State budget-makers began receiving warnings last January that the economy's downturn would have a negative impact on revenues. In spite of such warnings, when they crafted the current year budget they: put no money aside into the rainy day fund, raided nine different trust funds for $60 million dollars to finance their spending increases and authorized an historic $857 in non voter-approved debt.
- The state budget increased at an average annual rate of 8.6 percent over the previous four years.
- Growing state revenues created more than $3 billion in combined surpluses for FY 2006 through FY 2008, yet rainy day reserves sit at only about $860 million.
- Since FY 2004, the state has authorized more than $3 billion in new debt spending. As a result, debt service requirements in the current (FY 2008-09) budget is 2 1/2 times more than just seven years ago.
Of course, why spend responsibly when DC will just bail you out when times get tough?
Isn’t it strange that same folks continue to vote for the same old mind set that continues to do the same old thing and the voters actually think something will change for the better. My goodness………wake up before you don’t have anything left to call your own!