46 states forced to reduce services to deal with budget gaps
By Marsha Mercer, AARP Bulletin
Despite signs the economy is brightening, state governments face a fourth straight year of financial crisis. To balance their budgets over the past three years, officials have cut programs that help their most vulnerable residents, including older people and the disabled. They’ve hiked university tuitions and sliced K-12 school spending. They’ve laid off hundreds of thousands of public employees and pared workers’ benefits and pensions.
It took all this and more to close $430 billion in state budget gaps during the worst economic period since the Great Depression.
But more tough decisions and deep cuts lie ahead. On the chopping block are programs that Americans rely upon from cradle to grave: Many states are slashing child care assistance, and at least one state, Virginia, will eliminate the fund that paid for indigent burials.
“Everything is on the table — and it has to be,” says Chris Whatley, deputy executive director of the Council of State Governments, a nonpartisan policy research group based in Lexington, Ky.
Forty-four states and the District of Columbia are projecting $122 billion in budget shortfalls for fiscal 2012, according to the Center on Budget and Policy Priorities, which reports that nearly every state plans to spend less in 2012 than in 2008, after inflation.
Fiscal 2012, which starts July 1 in most states, “is shaping up as one of the most difficult budget years on record,” according to the center, which advocates fiscal policies that help low- and moderate-income people. And some states are predicting deficits totaling $75 billion in fiscal 2013, which starts in July 2012.
“These are painful cuts,” California Gov. Jerry Brown said in March as he signed $11.2 billion in spending reductions to programs benefiting the poor, the sick and older people, to close a $26.6 billion deficit in the 2011-2012 budget. “It hits vulnerable people. It’s not the kind of thing I like doing … But when you have a deficit, you have to.”
But, the governor warned, “the next round of cuts will be much more painful and much more disruptive.”
WHY NOT RAISE TAXES FOR THE 5% RICHEST PEOPLE IN THE WORLD!!!!!! STOP TAKE MORE FROM THE POOR. WHERES ROBIN HOOD!!!!
Because, Jennifer, the United States can only tax people who live in the U.S., not the whole world. And the U.S. does not tax the poor. Half the people in the country pay NO Federal tax at all, only taking from the more productive citizens. Obama thinks he IS Robin Hood.
And for future reference, you don’t need to SHOUT!
Dogwoman, the only people in the US who do not pay taxes are folks who make less than $12k and have a qualifying child and receive the earned income tax credit. Payroll taxes are federal taxes. We could say the same thing about capital gains taxes and then we could say those rich people pay no income tax. It doesnt do any good to try to split income taxes into categories of tax.
Having said that, we desperately need a tax code overhaul but there is no political will to do that like happened in 1986, 1954, 1932. I dont know how but Reagans greatest achievment was the 1986 reform act and he was able to get it done. I dont mean dumb ideas like a flat tax (we have one) but fundamental tax reform.
Sorry Robin Hood was a thief. He stole from the rich to give to the poor. If you steal something you are a thief. Sorry to say but the wealthy in this country employ the middle class and the more you take from them the more poverty you will end up with. But we are now living in the country of entitlement. So it should be work hard go for the gold and if you reach the gold it will be taken away from you and given to someone who didnt work as hard as you. Sounds great to me, that will make everyone want to strive to be wealthy. Now if you make it you are punished. Dont get it but living it forsure