States Facing $90 Billion in Budget Shortfalls

The federal government can't help out the states without harming them. It also really isn't fair to ask people in Idaho to bail out California and Florida.

I also want to know how fair it is to fire teachers but keep a twelve member school board and a group of education executives that all make over $150k a year.

Instead of firing teachers how about we fire the boards of education and return it to a volunteer job.

The answer to all that ails us is a return to individual control and return the country back to its original founding principles.

There is a point where something grows so large that it is impossible for it to live.

Irdumb you should think twice about your attitude on helping out your fellow Americans. The next LA riots may just spread to your quiet quaint Idaho backyard.

Also, thats a great idea about firing the over paid school boards. That should save at least 1000 teacher's jobs.

richard you an idiot ...this country is always first to step up and help all over the world but its time we help ourselves and stop this runaway goverment leaches from anymore damage ...11 trillion here 2 trillion there 25 billion stop and think youself ...a trilloin dollars is 1000 billion dollar bills and a billion dollarsa is a 1000 million dollar bills WE CANT DO THIS ANYMORE

Those of you who know american history will remember that after the revolution the states were all in debt. The federal gov't bought the states debts. Alexander Hamilton, a federalist, arranged the purchase of the states debts. For this the states gave controll to the central gov't. The states righters have no legitamate case any more. They can't balance their budgets with out fed. hand outs. A strong central gov't is where the power is. Money talks, bull shit walks.

Those of us that have an accurate grasp of U.S. History know that Virginia had paid it's debt and therefore, was not exactly in Hamilton's corner. History is past tense. I hope that you know the 2nd largest depression in U.S. history began in 1893 and lasted until 1910. In terms of financial discord it was actually larger than than that of of the 30's and it was this event that fathered the Federal Reserve in the way of J.P. Morgan and the banks of 1909.
All of this aside, this is not what this blog is about. It is about the the huge deficit burden of the states and consequently, how these individual states managed to get into this predicament. Those with extensive socialist programs, like Cal., are in the worst shape. Those that don't have any, like Vt., are in the best. This is all about the individual governments of the states, how they collect their tax money, and how they spend it. Everything is different here as it could be road networks and maint. thereof, like N.J., or next to no road maint. like it's sister state, Pa. This is nothing. Wait until everyone starts to evaluate government at the country and city levels as they are all dependent on the state to some degree.. These are charter governments, all part of our system, empowered to provide the local and immediate response to the citizenry. Their tax revenue for the most part is real estate derived and the secondary is business taxes related to jobs and consumer spending.
When all of this is evaluated - how can continued consumer spending be justified when the job market remains stagnant? I think that all of us are looking at a dangerous paradox. I don't trust statistics. Do you?

I think it is interesting that so many talk of the Federal government printing money to pay its bills. At least Ms. Madon got it right when she wrote "The federal government with the help of the Federal Reserve has unlimited power to print money." Like the rest of us, if the Federal government wants to spend money they don't currently have they must borrow it. That is why we have Treasury auctions and why we have a Federal debt. The Federal government borrows from the credit markets and the Federal Reserve but it does borrow. And helping the states helps the nation which helps the individuals which comprise the nation. Whether we like it or not, debt is what greases the wheels of our economic system. Take a look at what happened to the total debt of the non-financial sector right before and during the Great Depression. It can happen again. All we have to do quit borrowing and try to pay off our current debt en masse. http://sites.google.com/site/jpetervanschaik/

By the way, the Federal government ran budget surpluses from 1920 through 1930 and from 1866 through 1893. Serious economic depressions started in 1930 and 1893. Does anyone truly believe this is just a coincidence? http://sites.google.com/site/jpetervanschaik/

If states that are in trouble went to a four day work week and reduced pay accordingly it would reduce some of the cost. Also if they went to defined conributions rether than defined benefits for retirement it would reduce costs.

If we eliminated the states and had one central government we could get rid of 50 governments and save money.

People would not identify themselves as from Iowa opposing money for Califorinia. It would just be the government spending money.