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Told you so!

Remember last year when Obama's stimulus passed, a few fiscally responsible Republican governors refused part of the money on the grounds that it tied the states in to long-term debt and was only giving them money for the first year or two and they were crucified for "playing politics" and not looking out for the poor people in their state?!

Well guess who was right?!

The states that accepted ALL of the stimulus money are now finding out the hard way what the fiscally responsible governors knew all along--that it wasn't worth taking extra money for 2010-11 when it will leave your state on the hook for 2012 and beyond!

http://online.wsj.com/article/SB10001424052748704152804574628633460370644.html

Your thoughts?! (since I have to ask a question)

 
LoriKeet

Asked by LoriKeet at 9:25 AM on Jan. 2, 2010 in Politics & Current Events

Level 45 (194,908 Credits)
This question is closed.
Answers (11)
  • It's actually worse than I thought it would be. Since the economy didn't bounce back, both federal and state tax revenues are still down. Deficits will continue to grow. Some states it will takes decades to dig out of this fiasco.
    mancosmomma

    Answer by mancosmomma at 9:59 AM on Jan. 2, 2010

  • (Quoting link)

    "in most state capitals the stimulus enticed state lawmakers to spend on new programs rather than adjusting to lean times. They added health and welfare benefits and child care programs. Now they have to pay for those additions with their own state's money."

    "Second, stimulus dollars came with strings attached that are now causing enormous budget headaches. Many environmental grants have matching requirements, so to get a federal dollar, states and cities had to spend a dollar even when they were facing huge deficits. The new construction projects built with federal funds also have federal Davis-Bacon wage requirements that raise state building costs to pay inflated union salaries."

    "Congress imposed "maintenance of effort" spending requirements on states. These federal laws prohibit state legislatures from cutting spending on 15 programs, if the state took even a dollar of stimulus cash for these purposes."
    LoriKeet

    Answer by LoriKeet at 9:30 AM on Jan. 2, 2010

  • (continued "copy and paste" effort from above! LOL)

    "Now, in an election year, Congress wants to pass another $100 billion aid package for ailing states to sustain the mess the first stimulus helped to create. Governors would be smarter to unite and tell Congress to keep the money and mandates, and let the states adjust to the new reality of lower revenues. Meanwhile, Mr. Perry and other governors who warned that the stimulus would have precisely this effect can consider themselves vindicated."


    Short term "gain" now equals long-term TAXPAYER mess!
    LoriKeet

    Answer by LoriKeet at 9:33 AM on Jan. 2, 2010

  • Good point, the economy is not bouncing back and I do live in one of the worse states right now. I see no recovery here in the next year. The Governor of my state will not be seeking re-election, and of course this means nothing will be any better and since she is on the way out and a new Governor has to pick up the pieces here, and who knows how long the recovery will take.

    tyme4me2day

    Answer by tyme4me2day at 10:26 AM on Jan. 2, 2010

  • what? no sweet response yet? lol




    DA
    Anonymous

    Answer by Anonymous at 10:29 AM on Jan. 2, 2010

  • And my state was in the front of the line with hand held wide!!!! NC is one of the heaviest taxed states on the Eastern Seaboard and our wonderful governor just added to that burden. It makes me want to hurl sometimes.

    jesse123456

    Answer by jesse123456 at 10:59 AM on Jan. 2, 2010

  • what? no sweet response yet? lol


    ***


    ONLY if I can be proven wrong (which isn't going to happen on this one)....so its unlikely to be worth the effort!  Afterall there's no fun in agreeing with someone whose ideology is VASTLY different from yours, now is there?! LOL


    SOME people only choose to battle the unimportant issues or alleged "facts!"  LOL


    wink

    LoriKeet

    Answer by LoriKeet at 11:45 AM on Jan. 2, 2010

  • I just love smart people!

    I just hate the idiots running my state. They met the challenge by raising state income taxes. The new rate ties us with another state for the highest in the nation. There are across the board increases for all income levels and a new 2% surcharge on incomes over $250,000..the surcharge is figured on GROSS income. That means businesses will now pay an additional 2% tax on everything from payroll to the cost of the items they manufacture/sell.

    The people of the state collected enough signatures to repeal the law and now it is going to a vote. The state has just announced where the cuts will be made if it isn't passed. Education is at the top of the list! That is a crock 'o crap! There are lots of things they could cut, they are just using bully tactics.

    Unemployment in my town is at almost 19%. I know of at least 3 businesses that are going to close if this is reinstated.
    yourspecialkid

    Answer by yourspecialkid at 1:00 PM on Jan. 2, 2010

  • jesse123456 NY is right up there too!! Now they're probably going to try and violate federal treaties with the Native American nations up here AGAIN, and that's going to work about as well as a lead balloon AGAIN. He's also purposing raising the state taxes to 11% in southern tier counties that have no major cities in them. These places didn't realize the last recession ended before this one started!
    BlueCollarMama

    Answer by BlueCollarMama at 3:20 PM on Jan. 2, 2010

  • Anyone with a brain knew someone had to pay for this stimulus. My state was one of the smart ones that did not take stimulus money we are still hurting but it is something we can recover from and we have not had the job losses here like other states. In my town unemployment is only at 4.2 percent up a bit since we were at 3.5 percent last year. The state did cut the budget by 10 percent but it could be so much worse. Glad we had a Governor and state congress with actual brain cells.  Our state taxes have always been a bit on the high side but we have great schools and the money is actually spent in good ways.  Obama and many of his followers in the Congress will be booted as soon as they can be they took a big problem and turned it into a disaster. 

    Anonymous

    Answer by Anonymous at 3:26 PM on Jan. 2, 2010