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Posts Tagged ‘budget’

GOP budget cuts would kill 700,000 jobs: report

March 1, 2011 1 comment

rawstory.com

WASHINGTON – The Republican budget proposal to sharply cut federal spending would cost 700,000 jobs through 2012, according to the independent analyst Moody’s.

In a new report obtained Monday by the Washington Post, Moody’s Analytics chief economist Mark Zandi analyzes the House Republican budget proposal cutting spending by $61 billion this year and projects that it will curtail job growth.

“The House Republicans’ proposal would reduce 2011 real GDP growth by 0.5% and 2012 growth by 0.2%. This would mean some 400,000 fewer jobs created by the end of 2011 and 700,000 fewer jobs by the end of 2012,” Zandi concluded.

The numbers challenge the Read more…

There’s One Huge State Budget Crisis That Everyone Is Refusing To Talk About: TEXAS

January 23, 2011 Comments off

Joe Weisenthal and Gus Lubin

You know the story and you know the names: states like Illinois, New Jersey, New York, and California are supposed to be in huge financial trouble thanks to bloated governments, business-unfriendly regulations, and strong public sector unions.

After a crisis-free 2010, investors are expected to punish these hotbeds of bad governance in a muni bond market rout, at least if pundits like Meredith Whitney are correct.

But there’s one state, which is fairly high up on the list of troubled states that nobody is talking about, and there’s a reason for it.

The state is Texas.

This month the state’s part-time legislature goes back into session, and the state is starting at potentially a $25 billion deficit on a two-year budget of around $95 billion. That’s enormous. And there’s not much fat to cut. The whole budget is basically education and healthcare spending. Cutting everything else wouldn’t do the trick. And though raising this kind of money would be easy on an economy of $1.2 trillion, the new GOP mega-majority in Congress is firmly against raising any revenue.

So the bi-ennial legislature, which convenes this month, faces some hard cuts.  Some in the Texas GDP have advocated dropping Medicaid altogether to save money.

So why haven’t we heard more about Texas, one of the most important economy’s in America? Well, it’s because it doesn’t fit the script. It’s a pro-business, lean-spending, no-union state.  You can’t fit it into a nice storyline, so it’s ignored.

But if you want to make comparisons between US states and ailing European countries, think of Texas as being like America’s Ireland. Ireland was once praised as a model for economic growth: conservatives loved it for its pro-business, anti-tax, low-spending strategy, and hailed it as the way forward for all of Europe. Then it blew up.

This is the sleeper state budget crisis of 2011, and it will be praised for doing great, right up until the moment before it blows up.

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Oklahoma budgets could be cut up to 10 percent

January 16, 2011 1 comment

OKLAHOMA CITY — The head of the Senate committee overseeing the state budget is warning agency heads to prepare for funding cuts of up to 10 percent and directed them to produce plans on how to make the reductions.

Sen. David Myers, the new head of the powerful Senate Appropriations Committee, said Thursday he has begun giving agency heads the bad news as legislative leaders consider ways of filling a deficit estimated at nearly $600 million, or 10 percent of the overall state budget.

Some agency officials were shaken by the magnitude of the potential cuts, he said. “They’re giving us those responses, which in some cases are pretty painful,” Myers, R-Ponca City, said in an interview with The Associated Press. “We’re going to have to look at those and evaluate how much pain do we want to put here or there. We’re going to be looking at that very steadily over the next few months.”

Although lawmakers have known the size of the estimated deficit for months, Myers’ comments are the first to specify the potential cutbacks envisioned in state programs.

Alex Weintz, spokesman for Gov. Mary Fallin, said the extent of the reductions needed won’t be known Read more…