Potential state government shutdowns – Where the real fault lies…

BallotPedia
June 30, 2017

Report: Potential government shutdowns

“Daily Brew” email news from Ballotpedia- On Thursday, Maine Gov. Paul LePage (R) accused the legislature of playing chicken with state finances. “They’re playing chicken at 100 mph. If you want to play chicken, let’s play chicken,” said LePage. Maine’s fiscal year ends at midnight on Friday. Without a budget in place by that deadline, non-essential government services will shut down.

This would be the first partial government shutdown in Maine since 1991. At the center of the stand-off is a ballot initiative approved with 50.6 percent of the vote in 2016. Question 2 established a 3 percent surcharge on household income exceeding $200,000 per year and earmarked revenue raised from that surcharge for education funding. Republicans and Gov. Paul LePage (R) have proposed repealing Question 2, but Democrats say they will not back repeal unless Republicans support an alternative revenue plan for education similar to what the surcharge was estimated to generate.

 

As of June 29, 2017, the following six states were on the verge of a partial government shutdown or the implementation of spending cuts to non-essential government services:

  • Connecticut – totally Democrat controlled government – Sanctuary State
  • Delaware – totally Democrat controlled government
  • Illinois – divided government – Sanctuary State 
  • Maine – divided government – big issue surcharge and education 
  • New Jersey – divided government – Sanctuary counties and cities 
  • Washington – totally Democrat controlled government – big issue court decision on underfunding of education – Sanctuary State 

The 2017 state legislative sessions began with a total of six Democratic trifectas, 25 Republican trifectas, and 19 states under divided government.

Source

{A 2016 Daily Wire article noted additional states of California, Massachusetts, Kentucky, Hawaii, and New York. Many of these have been Democrat dominated states for long periods of time or at least when the financial instabilities occurred.}

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The Philadelphia Trumpet
By Tyrell Schlote
June 19, 2017

‘We’re like a banana republic. We can’t manage our money.’

For 700 days, the state of Illinois has operated without a complete and balanced budget, and things are starting to unravel. Bills are continuing to pile up, and talk of bankruptcy has begun.

Last week, the state again failed to reach a balanced budget. For the past two years, the Fiscal Times reported, the state has been forced to conduct business under court-ordered spending and stop-gap measures while running up a massive deficit. Right now, the state has a pile of unpaid bills totaling $14.7 billion, which equates to 40 percent of the state’s operating budget, and there is no indication that these bills are going to be paid any time soon.

Some of the current problem can be attributed to the gridlock between Republican Gov. Bruce Rauner and the Democratic-controlled state legislature. While the Democrats continue to push for more government spending, the governor keeps pushing for a more balanced budget. The latest budget, which proposed a $7 billion deficit, was struck down by the state senate after the governor threatened to veto it. Rauner, a former businessman who vowed to run the government like a business, lamented the terrible condition of the state by saying, “We’re like a banana republic. We can’t manage our money.”

The problem, however, goes further back. As the Fiscal Times pointed out, the problem goes all the way back to 2011 when the state’s budget crisis was first exposed. Back then, then Democratic Gov. Pat Quinn and the Democratic-controlled state legislature had to enact a major tax increase to address a looming deficit of at least $12 billion. That amounted to roughly a third of the entire $35 billion general fund budget. Quinn was ousted in 2014, but nothing has changed in the six years since the crisis started.

As more and more bills go unpaid, the outlook for the state is becoming worse and worse. For starters, multiple programs and agencies dependent on state aid are in danger of losing their funding. Schools, universities, hospitals and police are just a few that could face cutbacks.

Read the article HERE.

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So let’s look briefly at just three of the states – two shockers and one expected:

Connecticut: 

2010 Census, Connecticut was presented as the highest per-capita income, third smallest state by area, the 29th most populous, and the fourth most densely populated of the 50 United States.  According to the Tax Foundation, the 2010 Census data showed Connecticut residents paying the second highest average property taxes in the nation and third highest burden in the nation for state and local taxes at 11.86% compared to the national average of 9.8%. The state had 40 or more private schools (K-12) several having served the citizens for a hundred years or more;  private university including notables like Yale or Trinity; and a dozen or more public universities. (Wikipedia)

Connecticut was hit hard by the double whammy of a deteriorating local economy, coupled with a plunge in hedge fund profits – as well as hedge fund managers permanently relocating to Florida – leading to a collapse in tax revenues. According to the latest Connecticut budget released, the state is reeling from the consequences of sliding tax revenue from the super-rich, i.e. the state’s hedge fund managers.  Part of revenue decline may be partially attributed to “a handful” of wealthy individuals who moved to more tax-friendly states — an issue frequently raised by legislative Republicans, who argue Connecticut’s tax policies encourage the state’s super-rich to move out. (ZeroHedgeFund)

Illinois

It is the 6th most populous state with a diverse economic base and is a major transportation hub. The Census Bureau estimates that the population of Illinois was 12,801,539 on July 1, 2016, a 0.23% decrease since the 2010 Census. Illinois is a Democratic stronghold and considered one of the most Democratic states in the nation. Politics in the state have been infamous for highly visible corruption cases, as well as for crusading reformers. For instance in 2008, then-Governor Rod Blagojevich was served with a criminal complaint on corruption charges, stemming from allegations that he conspired to sell the vacated Senate seat left by President Barack Obama to the highest bidder. (Wikipedia)

June 15, 2017, Illinois governor orders special session to break budget impasse. Reuters

Delaware

According to a 2013 study by Phoenix Marketing International, Delaware had the ninth-largest number of millionaires per capita in the United States, with a ratio of 6.20%.  Since the mid-2000’s, Delaware has suffered from economic downfalls affecting stable middle class jobs. DuPont announced massive layoffs in 2016 as have a few other industries. The Democratic Party in 2016 has at least 53% of registered voters and according to 2017 information Democrats sit at 47% with Republican and Unaffiliated having increased to 28% and 23% respectively. The Democrats have held the governorship since 1993, having won the last six gubernatorial elections in a row. The state does not assess sales tax on consumers but it does impose a tax on the gross receipts of most businesses.

The Financial State Of Delaware Report is derived from the state of Delaware’s 2016 audited Comprehensive Annual Financial Report and retirement plans’ actuarial reports. Delaware’s financial grade according to the report is F.

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Those are just quick facts gleaned from minimal internet searches, imagine how long and complicated this article could have been had an in-depth reporting investigation been made.

“Ring-a-Ding”–Raising taxes on the wealthiest individuals and businesses appears to result in mass exodus because they can AFFORD to move out unlike the majority of lower-income levels. Raising minimum wages far above current standards simply chokes off revenue and forces companies to either close shop or find more creative “tech” ways to make money, thereby nullifying any benefit of the increase and reducing entry-level jobs for the future……Bummmmmer dudes and dudettes.

One of the most often mentioned areas of contention was education and its funding–if these schools do not have up-to-date equipment by now with the millions from resources allotted then there will never be enough. Why continue to burden taxpayers over a failed education system until those institutions STOP pandering to any one group of students, STOP indoctrinating the students into the cults of “STUPID and SOCIALISM”, and START actually teaching facts and how to survive in the real world without all the gimmicks and gadgets of politically correct BS. 

Of course, the another overwhelming burden is the flood of money going to welfare/social services for those who have no right to receive them or who have found ways to defraud the system. BTW–Obamacare started in March 2010 and the dominoes of state Democrat run governments crashing at nearly the same time–interesting corollary, don’t you think?

What this tells me is the more sanctimonious, supposedly well-educated, privileged, and wealthy areas are no different from anyone else–easily mislead despite their “so-called” pedigrees. They have been sitting back and allowing the states to be run by bleeding heart liberals who give lip service to “helping” those in need but who often in reality are finding ways to “pocket” those funds rather than use them for their intended purposes.

At this point instead of hearing bleating and baaing from governors, state governments and their congressional representatives on President Trump, these people SHOULD be figuring out how to save their states and stop the hemorrhaging of their resources, tax basis, and employment opportunities. Their petty short-sightedness is harming those that actually put them in office. So WHEN will those citizens say enough is enough and get tough on their own state governments rather than bad-mouthing a man who has a plan IF those people would give him half a chance?

You guys need to get the logs out of your own eyes, your ducks in a row, and your budgets balanced BEFORE you cast aspersions on the current administration as worthless……Democrat run states have for some insane reason figured more money, more social services, more free stuff is great while taking more from personal or business taxes is something that people just have to adjust to…looks like that isn’t exactly working out well, is it?

–Uriel–

 

About Uriel

Retired educator and constitutionalist
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