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By MONICA DAVEY

Budget Worries Push Governors to Same Mind-Set

Jen Fad · Tuesday, January 18th 2011 at 11:24AM · 284 views
The dismal fiscal situation in many states is forcing governors, despite their party affiliation, toward a consensus on what medicine is needed going forward. The prescription? Slash spending. Avoid tax increases. Tear up regulations that might drive away business and jobs. Shrink government, even if that means tackling the thorny issues of public employees and their pensions.

In years past, new governors have introduced themselves in inaugural remarks filled with cheery, soaring hopes; plans for expansions to education, health care and social services; and the outlines of new, ambitious local projects. ...

But an examination of more than two dozen opening addresses of incoming governors in recent days shows that such upbeat visions were often eclipsed by worries about jobs, money and budget gaps. Those speeches are the best indication thus far of the intentions of this class of 37 governors — 26 new and the others re-elected.

“The rhetoric has grown very similar,” said Scott D. Pattison, executive director of the nonpartisan National Association of State Budget Officers. “A lot of times, you can’t tell if it’s a Republican or Democrat, a conservative or a liberal.”

The difference now, experts say, is that the financial circumstances leave little room to do nothing, and governors will soon be tested on their words — as early as in the next few weeks, when many of them must propose budgets for next year.

While state revenues — shrunken as a result of the recession — are finally starting to improve somewhat, federal stimulus money that had propped up state budgets is vanishing and costs are rising, all of which has left state leaders bracing for what is next. For now, states have budget gaps of $26 billion, by some estimates, and foresee shortfalls of at least $82 billion as they look to next year’s budgets. ...

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http://www.nytimes.com/2011/01/17/us/17gov...

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Jen Fad Central Jersey, NJ

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Comments (3)

Dorothy Johnson Tuesday, January 18th 2011 at 9:42PM

Clark the fed did give stimulus money to the states, this is why a lot of teachers and others were not laid off. The thing is most of these were union employees and don't want to budge on a wage freeze. Most people the more money you give...the more will be spent, not neccesarily wisely. Our governor is proposing to raise retirement age for new employees, stop doulble dipping and a couple of other measures that will help current and future employess and save some $"s.

Jen Fad Wednesday, January 19th 2011 at 2:06PM

The other thing is that each time these unions strike for more money they don't see the bigger or global effect. The prices of goods increase and more jobs are sent overseas because they can be done cheaper and better many times.

Jen Fad Wednesday, January 19th 2011 at 2:07PM

... okay maybe not better in some cases, but they are done cheaper.

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