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State Workers, Taxpayers Caught in a Fiscal Vise |
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The badly needed economic recovery package included some substantial assistance for states that are facing growing budget shortfalls, possible layoffs and cuts in vital services. But despite critics’ noise about the amount of spending in the package, even with that helping hand, the fiscal outlook for states is still “dire” and likely will worsen, says the Center on Budget and Policy Priorities (CBPP):
The state fiscal situation is dire. Revenues are declining, and the need for services such as Medicaid is rising as people lose income and jobs….If revenue declines persist as expected in many states, additional budget cuts are likely. Budget cuts often are more severe in the second year of a state fiscal crisis, after reserves have been largely depleted and thus are no longer an option for closing deficits.
Even with the federal aid, CBPP estimates that states—which are required to balance their budgets each year—still face a $350 billion short fall in their operating budgets over the next 30 months. Most of the federal money will go to specific projects, such as infrastructure, Medicaid funding, education or local government needs. But not to the day-to-day operating budgets.
A stunning 43 states and the District of Columbia have fiscal year (FY) 2009 budget gaps totaling $89.2 billion. Midyear budget gaps for 41 states and the District of Columbia in FY 2009 already have reached $42 billion—on top of the $48 billion combined shortfall that 29 states had to make up when enacting their FY 2009 budgets. (Get more economic info and solutions at our Turn Around America site.)
That’s why Arizona, which already has laid off 350 state employees, may sell of government property to help balance its budget—and even then, could force more layoffs and cuts. Pennsylvania may lay off as many as 900 workers in July. New Jersey has announced furloughs for all state workers and may even look for salary givebacks.
As states develop their fiscal year 2010 budgets, working families are mobilizing to fight for their priorities.
In Minnesota, union, community and religious activists packed a dozen town hall meetings with state legislators to speak out against Gov. Tim Pawlenty’s (R) proposed budget that slashes public services and jobs.
The state’s budget woes have spurred the creation of a new coalition of union and community groups to seek long-term solutions to the state’s economic crisis. Read more about the new “Minnesota Recipe for Economic Security, Fairness and Opportunity” at Workday Minnesota.
Meanwhile in Oregon, while the state faces more than $700 million in a budget shortfall this year, unions, community and some business groups backed passage of a state-level stimulus package that could put thousands of Oregonians back to work and raise revenue for the state. It won legislative approval and was signed into law earlier this month.
The plan provides $175 million for construction, renovation and deferred maintenance at government facilities, universities and community colleges. Says Oregon AFL-CIO President Tom Chamberlain:
Every dollar earned by workers coming out of unemployment or every contract state agencies sign with a small business owner who can now avoid layoffs means more money spent at local businesses, rippling through that community many times over.
Yet despite the states’ fiscal crisis, as many as nine governors may turn down federal funds to help their states’ jobless workers—based on sheer ideological insanity that would deny the taxpayers of their own state’s badly needed assistance in pursuit of a national Republican strategy to trash the recovery bill.
The federal recovery package includes funds for states to extend and expand unemployment benefits that governors such as this week’s fallen Republican star Bobby Jindal of Louisiana find objectionable because the new rules allow more workers to qualify for help—and the last thing such far-right extremists want to do is aid more jobless workers.
Henry Kight is one of the nation’s 11.5 million unemployed workers. The 59-year-old Austin, Texas, engineering technician was laid off last year and denied benefits under the state’s complex rules. But under the provisions of the recovery package, he would qualify for unemployment aid. However, Gov. Rick Perry (R) says he will not accept the federal unemployment insurance funds, thus avoiding the new eligibility rules. Kight told The New York Times:
It just seems unreasonable that when people probably need the help the most, that because of partisan activity, or partisan feelings, against the current new administration, that Perry is willing to sacrifice the lives of so many Texans that have been out of work in the last year.
CBPP warns that any state that refuses stimulus funds will
weaken its economy [and] is also undermining federal efforts to run the economy around.
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The Republican extremists, mentioned above, are simply the most honest and now desperate expression of the decades long class war against working people by the capitalist ruling elite.
Working people now, organized and unorganized, are now having to go through economic hell as U.S capitalism, long in steady decline, has now collapsed. The essential needs of working people will increasingly be sacrificed as the ruling elite desperatly destroys every tax supported social institution needed to survive. Thus the destruction of public education, health services, and all tax support social needs.
It is really tragic that the labor movement, the voice of all working people and not just organized labor, has not not attempted to develop a new nataional strategy and political agenda to end the corrupt and failed system of capitalist economics.
The philosophy of being a “business partner” to capitalism means that nothing can be done for the needs working people unless a profitable business is first established. But the entire SYSTEM of profitable private business is collapsing. How can the EFCA be of any use if marginal businesses cannot afford even decent wages, let alone essential benefits?
Has UAW auto workers have been virtually destroyed? How can unions tryihng to organize businesses, even if promoted by law, help when businesses will no longer provide affordable health care, decent pay, good working conditions, etc?
They will not provide these essential needs to workers any longer because such benefits so deplete profits in this destroyed economy, that would have to go out of business? Or move to China? Or invest in some other more profitable and less labor intensive business activity.
The “Buy America” economic protectionism will not help much. “Buy American” mainly benefits the uncompetitive business from foreign competion.
Protectionism does not mean that these protected businesses will be willing or able to provide all the “living” wages and benefits needed by working people.They are still functioning under the laws of capitalism, which demands the maximization of profit and the minimal expenditure for “human resources”.
The fact of life for simple trade unionism:
(1) Collapsed U.S. capitalism is so impoverished today that it cannot and will not provide the essential economic and social needs of working people today, organized or unorganized.
(2) The federal, state and local governments ability to provide for health care, public schools, housing, etc. have been severly gutted by the ruling elite. The ruling elite has increasingly minimized and eliminated taxes for themselves.. Wars for profit (in Iraq etc.)have meant BILLIONS of dollars to the military-industrial companies, oil companies, Halliburton, etc. Now the “bailouts” have diverted TRILLIONS of dollars away from the needs of the people to the pockets of corrupt gangster capitalism. State and local governments have been impoverished by this massive looting of the taxpayers money.
(3) Both Republican and Democratic politicians have been involved in this “privatization” of government. The cynical function of Obama, after years of Bush/Cheney, was to put a “human face” upon policies that would now be otherwise unacceptable. Obama is going to promote corporate agendas (war build up in Afghanistan, attack Medicare and Social Security) that would of caused riots under Bush or if McKain had been elected.
(4) The labor movement must draw the line and finally declare that the working people of this country (and globally!) must “draw the line” and say “enough!”
The critical economic needs of the people cannot be met under this capitalist system. To survive we need to transition to a socialist economy.
The critical informational needs of working people, forever denied under corporate capitalist media, must be now addressed with the creation of new mass media. New newspapers, television, radio, internet facilities will be developed to inform, educate and most importantly organize working people.
The Democratic and Republican political parties are corrupted with with corporate money and agendas. A new political party must be created to promoted to include all working people, organized and unorganized, at every level of working life. Corporte funding and agendas would be prohibited. Candidates should run at every level of local, state and federal government.
This may seem to be as ridiculuous to be a “comment” to and article about
the impoverishment of state governments. But I live in California, where Schwartzennegger has carried out the same agenda as Bush as done at the Federal livel. The complete collapse of the national and state governments and economy! Capitalism has done to this country what Al Quida was never able to do!
The banks have more money now than at any time in recorded history. The national debt has more than doubled in the past twelve years. Our money is rapidly becoming totally worthless. Is what we don’t need is more bail outs and more hand outs.
The SIX OBJECTIVES of OUR CONSTITUTION ARE:
• Secure the Blessings of Liberty to ourselves and our Posterity;
• Insure domestic Tranquility;
• Promote the general Welfare;
• Form a more perfect Union;
• Establish Justice;
• Provide for the common defence.
Nowhere in here is any requirement to continually bail out failed institutions. The economic spending package is a package designed to bankrupt America. If you want to know the real cause and solution to Americas financial problems read my blog at: http://causeofinflation.blogtownhall.com.
The lack of jobs are the results of closing factory after factory, and exporting manufacturing to other nations. Capitalism has left our nation, and be sent overseas, this has been the long term plan, and we have been sold to the United Nations for Zero $.
The results of Trade Treaties made by our Congress, to end the middle class in America. Factory’s closed and destroyed to stop Capitalism for America. If we are to survive we must return REAL jobs for Americans. PresidentDon would have done that.
Now we have Obama giving away money’s that we will never be able to repay, America is bankrupt, and you have watched this happen. It has not been an overnight process, but gradual so you didn’t complain.
You continue to elect Repbulicans and Democrats that have only one agenda, the closing of Capitalism in America.
The government will take the ownership of everything.
The end of any rights under our Constitution, and every one of our Bill of Rights has ended. We only have 6 months to save this nation, and if we do not get rid of Obama by this coming July the 4th, our nation has seen it’s last days.
How long can we have WPA type jobs? It is the money that we taxpayers will be in debt forever that will be paying employees in the new Bailout coming to a state and city near you.
Are you Cowards? Will you fight back to Restore our nation? Or are you going to submit to a terrorist government that is going to disarm us, is going to place us under Martial Law, that is going to confiscate all private property, and join us to the New World Order.
What a shame, that our Veterans have fought, and died to preserve this nation, and now we have citizens that say: Lay down your arms, stop fighting, lets have peace at any price.
You Cowards do not realize what is coming for our future.
I grew up in the Great Depression, you Coward have no idea what is coming, and you are just too lazy to stop this. What a shame.
How can you even fly the American flag that you won’t defend?