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This may be paid content. A snippet is below along with one chart.

The chart says it all. Cities, Counties, and States cannot print money like the Feds. We're headed for a hard wall. Anticipate it in your planning...


Why Are States So Strapped for Cash? There Are Two Big Reasons

As state and local officials prepare their next budgets, many are finding that spending decisions have already been made for them by two must-fund line items that barely mattered when baby boomers such as Mr. Leavitt were growing up: Medicaid, the state-federal health insurance program for the poor and disabled, and public-employee health and retirement costs.

These days, they consume about one out of every five tax dollars collected by state and local governments. That is the highest share since Medicaid was created in 1965. Postretirement health benefits, which are harder to quantify, add to that burden and have cumulatively cost states more than $100 billion since 2008, according to government financial disclosures compiled by Merritt Research Services.

Those costs are outpacing growth in tax revenue year after year. In 2016, state and local governments collected about $136 billion more in taxes than they did in 2008, adjusting for inflation. Two-thirds of those additional dollars went to fund pensions and Medicaid, according to a Wall Street Journal analysis of Commerce Department spending data.

“The more we stare at the data, the more we realize all roads lead back to Medicaid and pensions,” says Dan White, a director at Moody’s Analytics who has studied the issue.

The resulting revenue squeeze is making it harder for governments to pay for core services such as education, infrastructure, police and fire protection.


Screen Shot 2018-03-30 at 7.09.21 AM.png

 

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Discretionary spending on such items like SSI and Medicaid are ridiculous. The amount of discretionary spending in that category for FY15 alone was right under $1 trillion. It's hidden within the total 'Social Security' discretionary spending category so everyone seems to be okay with it....well I'm not; and if we are not careful, we will go broke. History, and not just ancient Roman, but also recent history, has shown how welfare states fail...it's an eventuality and our Congress, both Dems and Republicans don't seem to want to see the truth.
 

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the damned politicians on both sides, (Except maybe for Ron Paul when he was in office), don't have a clue how to do anything except buy people's votes with other people's money so they keep spending us all into the sewer...... fricken' government from DC all the way down needs a serious budget cut across the board!!!!
 

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Can you spell welfare, boys and girls?
 

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That graph is borderline fraudulent.
Show one with the States pension PAYMENTS.
Then you will see the real problem.
 

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Yep. Public Employee Salaries and Benefits. Particularly PERS perks and amounts. Followed closely by welfare of all guises. Eventually a State will declare bankruptcy.

Then Uncle Sam will bail them out. Around and around it will go. Where it will stop nobody knows. Districts. Cities. Counties. States. USA. The US Dollar. The World.
 

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Back in my city councilman days, I was flabbergasted to learn our city received only 13 cents back for every dollar of property tax.
 

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Could it be fewer people are paying sales tax because they purchase things online where the tax is not charged?

It has to be a factor.
 

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When "Mom" and "Pop" run out of money, they go into debt, or do without. . . Politicians just keep going back to the turnip and try to bleed more, and more. When you don't make the money, you don't give a crap about spending the money.

State and Federal government are their own worst enemy when it comes to money.
 

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My state has a $60 billion pension liability for teachers and other government workers.

Total annual revenue is $5 billion.

Teachers took off today to demand more money.
 

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Back in my city councilman days, I was flabbergasted to learn our city received only 13 cents back for every dollar of property tax.
Around here, schools get the vast majority of property tax money. The city gets less than 10% I think
 

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Ideally one would think with perfect logic that all or at least most of the greedy public employee unions would be striking or threatening to strike FOR DECREASED SALARIES, BENEFITS AND RETIREMENT in order to pay for unfunded mandates. Not the other way around.

Could we imagine many public employee unions DEMANDING that their package of goodies and perks be cut by10% per year for about 5 years? I guess they are going to ride the flaming ship all the way into the ground. Gonna be a very hard landing. Then what happens ?
 
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