Day of reckoning is here

  • Follow Editorials

States are having the same budget woes as the federal government. The difference is, they aren't mortgaging our children's future by borrowing from the Chinese.

That's a good thing, but it's a painful thing: It means some tough choices have to be made to balance budgets.

"Legislators in more than a half-dozen states, their revenues evaporating in the recession," writes the Associated Press, "frantically worked to stave off government shutdowns and devastating service cuts. California failed to meet a midnight deadline and now may need to issue IOUs instead of paying bills."

In many cases, governors are running into stubborn legislators who simply can't see that the party's over and the good times aren't rolling anymore. The lawmakers, worried about their own political necks, don't want to be blamed for cutting essential services or temporary government shutdowns.

The cowards. Man up, as they say, and do the jobs you were elected to do and quit dodging the issue.

The budget disaster is most pronounced in California.

"Fallout from California's budget mess threatened to spread nationwide because of the sheer size of the state's economy," writes the Associated Press. "The Senate rejected three bills designed to save $5 billion, including $3.3 billion in education funding cuts that had to be enacted before Wednesday."

This recession doesn't seem to be going anywhere fast, and the private sector has had to tighten its belt as never before since the Great Depression. It's time for governments to do the same.

After its legislature failed to balance the budget by the July 1 deadline Wednesday, California was turning to IOUs -- leaving vendors in the lurch. Democrats, who control the Golden State's legislature, pushed for higher taxes -- the easy way out. Only politicians have that option of, when they get in a pinch, taking more money from others. The rest of us have to get by, make cuts, do with less.

These people need to get a clue, so here's one: California has seen the biggest drop in personal income tax revenues since the 1930s. That should tell Democratic leaders that they're fishing in a dry hole.

We wish the federal government would stop spending us into oblivion. But that may never happen as long as Congress can borrow, borrow, borrow and put off the day of reckoning.

Thankfully, that day is here for most states. But some are dealing with it better than others.

Lawmakers in Delaware, New Jersey, Oregon and Wisconsin raised income taxes, while governors in Illinois and Pennsylvania pushed for them. Massachusetts raised its sales tax.

Raising taxes in the depths of a recession is like visiting someone in the intensive care unit and asking him to go get you a carryout pizza.

Comments (10) Add comment
ADVISORY: Users are solely responsible for opinions they post here and for following agreed-upon rules of civility. Posts and comments do not reflect the views of this site. Posts and comments are automatically checked for inappropriate language, but readers might find some comments offensive or inaccurate. If you believe a comment violates our rules, click the "Flag as offensive" link below the comment.
omnomnom
3964
Points
omnomnom 07/03/09 - 04:10 am
0
0
going on a spending spree

going on a spending spree (stimulus) to help a depression caused by long-term deficits and E-Z credit is akin to treating diabetes with doughnuts. IDIOCY.

patriciathomas
42
Points
patriciathomas 07/03/09 - 04:51 am
0
0
We need much more government

We need much more government spending and higher taxes. And much more government spending. You can tell that's what the voter mandated by who they elected to congress and the white house. Well, the people are getting what they demanded. I hope the change is what will make them happy. (Dem voters iz reel smart)

southernguy08
532
Points
southernguy08 07/03/09 - 05:48 am
0
0
Here is a great way to save
Unpublished

Here is a great way to save billions. Do away with our state school system and let parents use the money they pay in property taxes (taxpayers only) and send their kids to state accredited private schools. My kids went to school overseas, and those schools put ours to shame, and for a lot less money and with a lot more to show for it. Public "schools," are a joke! Call them what they are...public babysitters.

Riverman1
94246
Points
Riverman1 07/03/09 - 06:13 am
0
0
Great editorial that our

Great editorial that our local leaders should take to heart. We simply have to make cuts in government and education. No one wants to, but THE MONEY IS NOT THERE. California is an example of what's in store for all states. Megatrends. There are two ways to go....obscene and unsustainable tax increases that keep the tax base shrinking or harsh cuts in spending. Some believe we can tax our way to keep corpulent government and education in the status quo. They are mathematically wrong. You don't need a calculator with a Y function to figure it out either.

SteveGrekko
0
Points
SteveGrekko 07/03/09 - 08:28 am
0
0
How can you expect the

How can you expect the Government to spend less of your money. You know, the money that even you don't have for them to take? Let's think about this rationally, okay? How can they fix the problems they created last time without even more money this time...and wait until next time their hands are out. Give the politicians a break, will ya? Can't you see that they need your money more than you do? These guys and their corporate cronies need to eat too. Wait! But there is another way, the US Dept of the Treasury (a subsidiary of Goldman Sacks for over 30 years) can just print up the money they need since it is only paper and not backed by anything these days, which makes your dollars more worthless by the day (prepare for hyperinflation, the American way of life). Or, we can elect people to represent us that have a modicum of common sense. You pick.

imdstuf
10
Points
imdstuf 07/03/09 - 08:31 am
0
0
The federal government has

The federal government has been in debt for years, but they make their payments so I do not think its going to up and shut down, as it has not since the debt began. State governments are different. Unfortunately California's problem is mainly sheer size. Legalizing marijuana would help there, but people with nothing better to do, but worry about others will keep that from happening.

mad_max
1
Points
mad_max 07/03/09 - 09:29 am
0
0
California has made their

California has made their payments too...but it ain't making them now. Yes, the federal government HAS made their payments....based on borrowing. But now those who loan us the money are starting to question our stability. First, the interest rates we have to pay will start rising. Next, they will just not buy our debt. In the meantime the interest rates WE pay will start rising and that will mean less consumer spending, less manufacturing, and less taxes collected. It's a downward spiral and our ship is already spinning around the top of the vortex. And for those who think we can just print more money, printed money is worthless money. People who do not think that you could see a situation where a loaf of bread costs $100, if you can find one, are woefully ignorant of what can go wrong when a country's economy crashes and their debt is too high. We are on a tightrope now and all that is needed to shake us off is something like Cap and Trade, Universal Healthcare, or a VAT tax. Any one of these could tip the balance. Anything that is bad for business is horrible for the country right now.

jack
11
Points
jack 07/03/09 - 09:39 am
0
0
Schwarxzeneger was right

Schwarxzeneger was right about the huge state government and other unions milking the state's budget dry. Note who is doing the protesting in the picture in CA. The SEIU, one of the largest in the nation and supporter of BimbObama/DIMs. The UAW is why GM and Chrysler are major reasons they have gone bankrupt of had government bailouts (or both).

Riverman1
94246
Points
Riverman1 07/03/09 - 11:50 am
0
0
IMDstuff displays a classic

IMDstuff displays a classic attitude many have believing we can continue to borrow without consequences. Universal health care may be the straw that breaks the camel's back. By the way, I agree withou about legalizing and taxing marijuana, but I'd take it a step further and legalize all drugs and tax them. Ending the war on drugs would save billions.

jack234
852
Points
jack234 07/03/09 - 02:58 pm
0
0
Breaking News: Ellie Mae

Breaking News: Ellie Mae Palin resigns as gov. to spend more time with family. HELLO! HELLO!

mad_max
1
Points
mad_max 07/03/09 - 10:32 pm
0
0
She will be back in 2012 to

She will be back in 2012 to kick Comrade Bro'bama's arse.

Back to Top
loading...
Top headlines

Ex-SC Gov. Edwards dies

CHARLESTON, S.C. - James B. Edwards, South Carolina's first Republican governor since Reconstruction and later energy secretary for two years in the Reagan administration, has died.
Search Augusta jobs