The State We're In
Introducing Governor-elect Jon Corzine of New Jersey, Acting Governor Dick Codey laid out what Corzine faces:
"Let me condense your transition report for you," he said, eliciting chuckles from the crowd. "We're pretty much broke. We have more debt than we can afford. Next year's budget deficit is at least $5 billion. School construction and transportation funding have virtually dried up. And we have a $1 billion pension payment due next year."
Pretty much sums up the fiscal nightmare that most states face -- and, in fact, the federal government too. One day, the credit card will be maxed out, and someone will have to pay the bills. Unfortunately for us, Bush will be unveiling his presidential library just about at that time -- but we'll be stuck with the tab.
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"Unfortunately for us, Bush will be unveiling his presidential library just about at that time -- but we'll be stuck with the tab."
How could an emperor with NO clothes can open a library when he has only 2 books?
November 18, 2005 8:20 AM | Reply | Permalink
November 18, 2005 8:28 AM | Reply | Permalink
One would think the Republican goal in governing is to starve the beast, torture it, strangle it, and finally kill it. We should congratulate them for doing such a superb job, assuming that to be the goal.
But, really now, recovery isn't that difficult. All we have to do is return to the days when people paid taxes, and rich people paid a lot more taxes than poor people. Maybe there was something to be said for that system after all.
November 18, 2005 8:31 AM | Reply | Permalink
You must not be from around here. The fiscal mess New Jersey finds itself in right now is almost entirely of its own making. It began with Governor Whitman's irresponsible tax cuts, financed by a raid on the state pension funds, and continued under the Democrats, who haven't had the guts (so far) to address the problem. Corzine may have the guts; wheher he's got the political chops to get the Democrats in the legislature to follow him is another story.
November 18, 2005 8:35 AM | Reply | Permalink
Will that library contain "My Pet Goat"? It should be displayed in glass!
November 18, 2005 8:48 AM | Reply | Permalink
It is all part of Grover Norquist's Grand Plan. The states are just a bit ahead of the federal governement, that's all.
November 18, 2005 8:58 AM | Reply | Permalink
He might not have one. Maybe he'll open a theme park instead.
November 18, 2005 9:07 AM | Reply | Permalink
In the Bible someone ask Jesus about paying taxes and he held up a coin with the caesar's profile on it and said, Render unto God that which is God's. render unto Caesar that which is Caesar's.
In '96, Bob Dole had a campaign slogan, "We want you to keep more of your money in your pocket.
Jesus understood economic better the Bob Dole because as a method of economic exchange, money is a form of public commons, much like the road system.
Wealth isn't an absolute, but a percentage of the larger whole. So the only legitimate question is how to effectively grow the larger economy.
Since only as much money can be saved as can be effectively invested, beyond which it creates asset inflation and is better spent to create more demand, the ability to save should be judiciously spread around and not monopolized by the few.
The demand side of the economy will re- assert itself.
November 18, 2005 9:44 AM | Reply | Permalink
Our Republican-led legislature automatically turns budget surpluses into sweeping tax cuts. Unfortunately, the economy has not been strong enough to sustain the surpluses. Subsequent years see deficits and the burden is then shifted to county and municipal governments to pay for state legislated programs without state funding. Guess what happens then?
This vicious cycle continues and will be perpetuated again this year. We have a surplus and our Bush, the governor, has already proposed spending it on tax cuts.
In the meantime,
- Our constitutionally mandated class size amendment remains unfunded by the state because Bush doesn't support it and wants to overturn it.
- The state has levied a 6.8% surcharge on EVERY homeowner in Florida to fund our state-funded insurer who insures 800,000 properties in Florida that can't get private insurance. They are discussing an additional 11% surcharge.
- We have a $35 million backlog of road, school and utility projects.
- And, the economy is moderating.
But, yes, we really need those tax cuts so we can continue to perpetuate the deficit/surplus cycle.
November 18, 2005 9:45 AM | Reply | Permalink
in New Jersey, but you have to add on the wretched No Child Left Behind with all its glorious federal mandates and absolutely no federal funding. This is on top of what already is the biggest portion of how our tax dollars are spent in The Garden State. Let's not forget the Medicaid changes, too.
November 18, 2005 11:43 AM | Reply | Permalink
Jeb Bush sounds like presidential material to me. The voters seem to love that style of management.
November 18, 2005 12:06 PM | Reply | Permalink
Thank goodness a poll released this week clearly shows that Floridians do not want a President Jeb. Hopefully, the rest of the country will listen to those of us who have lived under 8 years of his crap while enduring 5 years of the brother's crap. We are double losers.
November 18, 2005 1:23 PM | Reply | Permalink
It began with Governor Whitman's irresponsible tax cuts, financed by a raid on the state pension funds, and continued under the Democrats, who haven't had the guts (so far) to address the problem.
Until there is some evidence that citizens will support paying more in taxes in order to address some of the problems we have, I don't see how we can blame Democrats for refusing to commit political suicide by proposing such tax increases. Since Reagan was President, our voters have believed they can have it all, but not have to pay for it. They believe that the 1% or so of wasted tax money would make all the difference if only that waste could be stopped. Those two beliefs just have to change, or there is no solution to our problems.
November 18, 2005 4:08 PM | Reply | Permalink
Hopefully, the rest of the country will listen to those of us who have lived under 8 years of his crap while enduring 5 years of the brother's crap. We are double losers.
Floridians certainly are double losers now. Unfortunately, you could become triple losers if the GOP picks Jeb as its candidate in 2008. I really doubt that our voters have the intelligence to turn down another screwing by a Bush. The next one will be smarter, almost a certainty, since he couldn't possibly be dumber, but that only means the damage he can do is multiplied by increased competence at doing it. You folks in the land of hurricanes need to catch this Bush in some sexual activity and do it quickly - Red states just don't abide sexual activity in a president.
November 18, 2005 4:15 PM | Reply | Permalink
Unfortunately for us, Bush will be unveiling his presidential library just about at that time -- but we'll be stuck with the tab.
Whether its the taxpayers of Texas. of Tarrant countr, Poppy's pals,or the Good Ole USA, the more things change with GWB.....
November 18, 2005 4:28 PM | Reply | Permalink
No, it'll be a bar, where everyone knows your name and no one disagrees with the owner.
November 18, 2005 9:13 PM | Reply | Permalink
As for New Jersey, any way you look at it the irresponsible tax cutting of the past will have to be reversed, possibly by ballot measures as in California if possible. Hopefully, taxes on wealthy and powerful interests can be restored.
One major idea for state and local governments that are strapped like New Jersey that I have long advocated is taxation of scarce resources and pollution. There is PLENTY of the latter in New Jersey to tax, and maybe if all those emissions in Northern New Jersey were subject to heavy taxation, not only would revenue be raised but the emissions might be cut.
There is also a lot of dispute about shoreline development and wetlands in New Jersey. Wherever such development IS allowed to proceed, usually enormously profitably, the state should add, to whatever is there now, a huge and disincentivizing tax. It would raise revenue even as such development of open spaces takes place, and perhaps slow some of it in the process. I suspect that there will also be a battle in New Jersey about raising the gas tax (gas is very cheap in New Jersey, compared to NY, for example). That is unfortunate, as I have outlined NATIONAL policies that would tax new vehicles in inverse proportion to their mileage per gallon. But the other issues, including taxes even on emissions that are legal, as well as taxes on illegal emissions in addition to and not instead of fines of many other things, from mercury to dumping of various kinds of waste etc. The revenues raised would reduce pollution AND fill the state coffers, and should be politically palatable, even though resisted by powerful corporate interests.
November 19, 2005 12:39 AM | Reply | Permalink
Cloudy,
I didn't make a very clear point in that regard, but you have developed the general idea a bit further.
The currency is a function of the state, whatever its basis, the people, the nation, or the head.
We have managed to combine the bottom up process of democracy with the top down unit of the Republic. We just have to keep working at the rough edges. The Communists spent seventy years finding a better society doesn't come at the price of subjugating the individual and we are exploring the opposite lesson, that a better individual isn't created at the expense of society. There is a balance.
November 19, 2005 3:24 AM | Reply | Permalink
I haven't lived in New Jersey all that long, but I already recognize what you might call the "Governor's dance".
It goes like this: Gubernatorial candidates promise tax relief and a pony, ignoring budget warnings from newspapers and the like. Public chooses prettiest pony and most relieving tax relief from among the candidates' offerings. Within a few weeks after the election, Governor-elect is "shocked, shocked" to learn of the terrible state of the state's budget -- sorry, no relief, no pony.
I personally would enjoy seeing a little honesty on this subject coming from those running for Governor. Sadly, though, it seems that honesty does not appear to be the best policy, at least as far as getting elected goes...
November 20, 2005 3:47 AM | Reply | Permalink