Many states celebrate surpluses as Congress struggles with debt

[Will]

Many states celebrate surpluses as Congress struggles with debt

As Washington stares at rising national debt and projected deficits for years to come, many states are faced with the opposite problem: whether to spend their budget surpluses and, if so, on what.

At least a dozen states ended fiscal 2011 with surpluses. Indiana reported one of the largest, with an extra $1.2 billion in its accounts. Gov. Mitch Daniels, a Republican, on Friday authorized bonus payments of up to $1,000 for state employees. An employee who “meets expectations” will get $500, those who “exceed expectations” will receive $750 and “outstanding workers” will see an extra $1,000 in their August paychecks.

“No state anywhere comes close to Indiana’s record of spending tax dollars carefully, with total savings over the last six years in the billions. Your spending efficiency has enabled us to stay in the black even as revenues plummeted,” said Mr. Daniels, who recently flirted with a run for the White House but ultimately stayed out of the race.

While Indiana decided to reward its employees, other states are redirecting surplus funds into cash-strapped areas such as education. Idaho ended the year with an $85 million surplus, the majority of which will be funneled to public schools and colleges, Gov. C.L. “Butch” Otter, a Republican, said in a statement last week.

Other states are bulking up their savings accounts. Maine finished the year with a surplus of nearly $50 million. About half will go to the state’s reserve, the Bangor Daily News reported. Iowa closed its books with $480 million left over, on top of an already healthy “rainy day fund.”

Ohio Gov. John Kasich, a Republican, on Sunday touted the fact that since taking office in January, he has helped the Buckeye State turn its deficit into a surplus.

“In my state, where we faced an $8 billion deficit, we wiped it out. We eliminated it,” he said on “Meet the Press.”

“We’ve been able to cut taxes, improve [and] reform government. And you know why? We looked [the fiscal problems] square in the eye. … That is what they’re not doing here in D.C. right now.”

Arkansas, South Carolina and other states also ended their fiscal terms firmly in the black. During the depths of the Great Depression a few years ago, states emptied reserve accounts or raised taxes to make ends meet. Unlike Washington, nearly all states are required by law to balance their budgets each year. Only Vermont lacks such a requirement, according to the National Conference of State Legislatures.

The biggest drivers of surpluses are higher-than-expected tax collections. Thirteen states have reported revenue higher than anticipated, according to the National Association of State Budget Officers. Only two states reported less tax revenue than expected, and another 31 states were on target. Four states have not finished the 2011 budget cycle.

Last year, 46 states reported revenue at lower-than-expected rates, and the tax turnaround is, to some, an indication that the economy has begun to turn around.

“But the thing we’re stressing is … they’re still not back to the levels they were before the recession,” said Brian Sigritz, director of state fiscal studies at the budget officers association.

Spending reductions also played a big role. Many states made major cuts to education and other parts of their budgets. Even with better-than-expected tax revenue, those cuts were still necessary, partly because federal stimulus dollars, which propped up many state budgets over the past two years, have been fully expended.

Despite ending the fiscal year on a high note, governors are aware of how quickly the rosy financial picture can change. They are cautioning taxpayers and lawmakers that a little extra cash doesn’t mean the state should embark on a spending spree.

“I’m grateful for the revenue growth. But I still think that we’re a long way from out of the woods,” Mr. Otter of Idaho said in his statement “You need to remember that this is about half a billion dollars less than we had in my first year as governor. So we’re going to keep working hard.”

Many states celebrate surpluses as Congress struggles with debt - Washington Times

[RetiredSFC 97]

proof if the federal government had to balance their books we wouldn't be in this mess.

But it's easier to buy votes.

[LATB]

looks like more conservative Republicans is the answer

[jhammons01]

Which states are clamoring for a gubmint hand out??

California (D), New York (D), Illinois (D).....

[mrvette]

Originally Posted by jhammons01

Which states are clamoring for a gubmint hand out??

California (D), New York (D), Illinois (D).....

IF they ever turned off the FFF, (Federal Freeking Faucet) of money, ALL states would be in trouble, but not really....

you see, in order to collect all these funds....for instance, education, they have to fill out and abide by all these federal guidlines....leftovers from the 60's crap feel good legislation....

NOW if we don't give the MONEY on the Fed.gov level and things remain the same, the states are in trouble.....but the reality is skool budgets can easily be slashed 50% or MORE....

but that requires telling the feds to go to HELL, and refusing the money, maybe CONNgress can eliminate about 3/4 of the federal agencies IF they have the balls....

I know, never happen...until the Fed.gov falls....

[Joecooool]

Originally Posted by Will

Ohio Gov. John Kasich, a Republican, on Sunday touted the fact that since taking office in January, he has helped the Buckeye State turn its deficit into a surplus.

“In my state, where we faced an $8 billion deficit, we wiped it out. We eliminated it,” he said on “Meet the Press.”

“We’ve been able to cut taxes, improve [and] reform government. And you know why? We looked [the fiscal problems] square in the eye. … That is what they’re not doing here in D.C. right now.”

One of my favorite douchbags. What he casually fails to meantion is how he did that.

He slashed the money sent to local governments by 25 percent next year and an additional 25 percent (for a total of 50%) in the following year. So all he has done is pass the deficit problems to local governments, forcing them to raise taxes or severely restrict services.

But he can say he didn't raise taxes.

[LATB]

Originally Posted by Joecooool

One of my favorite douchbags. What he casually fails to meantion is how he did that.

He slashed the money sent to local governments by 25 percent next year and an additional 25 percent (for a total of 50%) in the following year. So all he has done is pass the deficit problems to local governments, forcing them to raise taxes or severely restrict services.
But he can say he didn't raise taxes.

there is the problem with the liberal mind...

they don't want to cut spending to balance budgets...

[jhammons01]

Originally Posted by Joecooool

One of my favorite douchbags. What he casually fails to meantion is how he did that.

He slashed the money sent to local governments by 25 percent next year and an additional 25 percent (for a total of 50%) in the following year. So all he has done is pass the deficit problems to local governments, forcing them to raise taxes or severely restrict services.

But he can say he didn't raise taxes.

While state Spending in the troubled states have trebled, mostly going to Union state workers, services in those same states have actually gone down in the past decade ......prior to 2007

explain that one genius

[RedLS1GTO]

Originally Posted by Joecooool

One of my favorite douchbags. What he casually fails to meantion is how he did that.

He slashed the money sent to local governments by 25 percent next year and an additional 25 percent (for a total of 50%) in the following year. So all he has done is pass the deficit problems to local governments, forcing them to raise taxes or severely restrict services.

But he can say he didn't raise taxes.

Well, I am an Ohio resident. My local community is doing just fine. We have had no tax increases and there aren't people starving on every street corner. In fact nobody that I know (and I know a lot of people throughout the state) has felt the wrath that you libs think will happen with spending cuts. Please, show me the starving children. Show me the collapse of civilization that the cuts by Gov. Kasich have caused. You can't... because there are none. What "restricted services" have caused the poor residents of Ohio to suffer under the evil Republican? The budget is balanced and there is no Armageddon. Funny how that works.

Of course we know that somehow in the liberal mind, spending a gazillion dollars that we don't have on programs that we don't need for people who don't contribute is a much better option.

[Joecooool]

Originally Posted by RedLS1GTO

Well, I am an Ohio resident. My local community is doing just fine. We have had no tax increases and there aren't people starving on every street corner. In fact nobody that I know (and I know a lot of people throughout the state) has felt the wrath that you libs think will happen with spending cuts. Please, show me the starving children. Show me the collapse of civilization that the cuts by Gov. Kasich have caused. You can't... because there are none. What "restricted services" have caused the poor residents of Ohio to suffer under the evil Republican? The budget is balanced and there is no Armageddon. Funny how that works.

Of course we know that somehow in the liberal mind, spending a gazillion dollars that we don't have on programs that we don't need for people who don't contribute is a much better option.

Kasich has been in office for five months. This just happened this year.

Your cities and counties are about to be forced to raise revenue to offset the loss from the state funds.

Bookmarking this thread to resurect later this year when the shit hits the fan.

[Will]

Originally Posted by Joecooool

Kasich has been in office for five months. This just happened this year.

Your cities and counties are about to be forced to raise revenue to offset the loss from the state funds.

Bookmarking this thread to resurect later this year when the shit hits the fan.

You're in for a long wait. It never hits the fan in these situations, and we always learn that we were, in fact, spending too much money for no reason whatsoever.

This is just like 1995-1996. Clinton and The Democrats SCREAMED that cuts were going to hurt women, children, and minorities. They SCREAMED that evil Republicans were going to make Grandma and Grandpa eat dog food.

Never happened. Everything was fine, because we were WASTING money beforehand.

Same thing will happen here. The trend will trickle down to the cities and towns in Ohio, who will also tighten their belts. Roads will still be paved, trash will still be collected, fires will still be put out, and you'll NEVER resurrect this thread for good reason.

[LATB]

Originally Posted by Joecooool

Kasich has been in office for five months. This just happened this year.

Your cities and counties are about to be forced to raise revenue to offset the loss from the state funds.

Bookmarking this thread to resurect later this year when the shit hits the fan.

[gene] rong [gene]

less revenue can be simply mitigated with spending cuts...and state employees may have to face the cut back reality the rest of the folks are facing.

[Will]

Originally Posted by LarsAtTheBeach

state employees may have to face the cut back reality the rest of the folks are facing.

As well as state wards.


Where did the left get this crazy idea that when the tax payers suffer and have to tighten their belts, the extra mouths the taxpayers are feeding against their will should not be affected at all?


The taxpayers are doing with less, so the people they support will have to as well.


Democrats' phony preaching about "fairness" and "shared sacrifice" conveniently STOPS when it comes to THEIR base.

[LATB]

Originally Posted by Will

As well as state wards.


Where did the left get this crazy idea that when the tax payers suffer and have to tighten their belts, the extra mouths the taxpayers are feeding against their will should not be affected at all?


The taxpayers are doing with less, so the people they support will have to as well.


Democrats' phony preaching about "fairness" and "shared sacrifice" conveniently STOPS when it comes to THEIR base.

correct

the fed and the states would rather continue to borrow near half of each dollar they spent to finance political correctness.

[Peter Pan]

In Texas there will be some cuts to the handouts to keep our already high property and sales taxes in check, it is really nice to see the govt employees to have to worry about jobs like I have to in the private sector, after all they have jobs on my dime and I have lots less change to pay into the system under the hope and change crap America took hook line and sinker

[RedLS1GTO]

Originally Posted by Joecooool

Kasich has been in office for five months. This just happened this year.

Your cities and counties are about to be forced to raise revenue to offset the loss from the state funds.

Bookmarking this thread to resurect later this year when the shit hits the fan.

I guess I'll sit back and wait for the death and destruction caused by the evil spending cuts.

[RedLS1GTO]

Originally Posted by Will

Democrats' phony preaching about "fairness" and "shared sacrifice" conveniently STOPS when it comes to THEIR base.

This is the most annoying part. I'm still waiting for the liberal who is willing to give up their own money...

Socialist governments traditionally do make a financial mess. They always run out of other people's money. It's quite a characteristic of them."

-Margaret Thatcher

[Joecooool]

Originally Posted by Will

Democrats' phony preaching about "fairness" and "shared sacrifice" conveniently STOPS when it comes to THEIR base.

That's pretty funny considering that as I type this our democrat president is offering to put everything on the table for spending cuts and republicans refuse to budge on tax hikes.

[RedLS1GTO]

Originally Posted by Joecooool

That's pretty funny considering that as I type this our democrat president is offering to put everything on the table for spending cuts and republicans refuse to budge on tax hikes.

What exactly is he offering?

Please post a link to anything even remotely resembling a balanced budget plan that came from ANYBODY with a (D) after their name.

[LATB]

Originally Posted by Joecooool

That's pretty funny considering that as I type this our democrat president is offering to put everything on the table for spending cuts and republicans refuse to budge on tax hikes.

Originally Posted by RedLS1GTO

What exactly is he offering?

Please post a link to anything even remotely resembling a balanced budget plan that came from ANYBODY with a (D) after their name.

He offers nothing but rhetoric...

"future cuts on discretionary spending"