Below is an excerpt; click here for the entire article.
State and local governments that relied on federal aid to stay afloat during the recession are not counting on as much help from Congress once the era of divided government begins next year.
Nationwide, states are grappling with a total budget gap of $110 billion for fiscal 2010 and $82 billion for fiscal 2011, according to the National Council of State Legislatures.
Compounding the budgetary problems, states are burning through the fiscal assistance that was passed under the stimulus law. The loss of that funding has analysts talking of an ‘ARRA hangover’ as states adjust to life without the American Recovery and Reinvestment Act.
The budget crunch also comes amid a post-election push by the GOP to end earmarking in Congress, a practice that has long been used to direct funding to state and local projects across the country. Republicans in the House and Senate approved a voluntary moratorium on earmarks last month, throwing the future of the practice into doubt.
“It’s going to be a tough environment next year,” said Charles Loveless, director of legislation for the American Federation of State, County and Municipal Employees. “We’re going to have a major fight on our hands, no ifs, ands or buts about it.”
In August, as the House was moving on legislation that provided another $26 billion in state and local relief, [Rep. Paul Ryan (R-Wis.), the incoming chairman of the House Budget Committee], said it was time for governments to make tough choices, rather than turning to Washington for cash. “States and localities need to take this moment to get their fiscal houses in order. Just as the federal government must make the difficult decision on how to live within its means, states and localities must do the same,” he said.
Isn’t it interesting that we gave trillions to the rich, and we cannot find the $100B for to get ALL the states out of their current year budget crisis, which of course, will result in Americans in these states, where unemployment is high to suffer from increased costs of services and decreased services for their taxes!!!
Yet there was billions in additional pork in the latest bill being passed to continue the Bush Era tax cut!!
This country and its leaders in Washington have gone LOCO, and their priorities upside down! The only thing they all seem to be worried about it either how to stay in power and how to topple the current government and come into power!! Forget about the economy, the deficits, misery of people, and everything else.
so what, the feds should come up with 100 billion to bail out the states. The what happens next year, 200 billion, then the next year 300 billion. Where does it end. You are correct though. The feds need to reign in their spending and they obviously learned nothing from the last election. Neither the elephants or the donkeys. Maybe 2010 there should be a liberty bell in charge.
Although I’m in the bracket that would have been raised if the tax cut for the “rich” was allowed to expire. I think that it would have been the right thing to do and I would have accepted it because our county needs the added revenue.
What I WISH though, is that I could feel better about the money was spent by our federal government.. When I give money to a local food pantry or soup kitchen I know where the money is going, but that check to Uncle Sam…..?