Monday, February 09, 2009
States of Distress - WSJ.com
The finances of our states are in big trouble.
It used to be raise taxes and then spend the money.
Now, apparently, it's evolved to spend money so you have to raise taxes.
This looks like it's going to be a rough ride...
It used to be raise taxes and then spend the money.
Now, apparently, it's evolved to spend money so you have to raise taxes.
This looks like it's going to be a rough ride...
The Wall Street Journal gives their opinion:
"The state spending binge of the last five years has been almost unprecedented in American history. (See nearby chart.) Since 1998 state and local budgets have nearly doubled to $2 trillion, according to the Census Bureau. State and local expenditures rose 34% from 2003-2007 compared to inflation of 19% and population growth of 5%. They also loaded up on debt, which doubled to $2.23 trillion in 2008 from $1.14 trillion a decade earlier. This doesn't include nearly $1.5 trillion in unfunded health and pension liabilities."
