If you cut enough you DIE!!!
The bad news about state budgets just keeps getting worse. Only three weeks into the new fiscal year, gaps are already opening up. And the shortfalls are only expected to grow.
"If you think legislators are breathing a sigh of relief because their budgets are passed, think again," said William Pound, executive director of the National Conference of State Legislatures.
State legislators and governors had to contend with deficits totaling $142.6 billion as they closed out fiscal 2009, which ended on June 30 for 46 states, according to the conference. Three states have yet to pass balanced budgets for fiscal 2010, as officials tussle over painful budget cuts and tax increases.
An Arizona official joked that the state's financial plight is comparable to the Grand Canyon, while an Illinois legislator said his state's budget situation is so scary, it's best told around a campfire at night.
"The revenue forecasts are continuing to underperform even the most pessimistic of projections," Eckl said. "There's still a lot of this ahead of us."
At least 12 states and the District of Columbia are confronting gaps totaling $23 billion in budgets already adopted.......
There is a point where the evaporation of revenues exceeds ability to cut. Not much different than dealing with a patient presenting with an uncontrollable sepis. First you cut off the patients legs, than arms, than organs, and there is simply nothing left to cut without killing the stump of a patient as the infection keeps spreading.
If economists were doctors, the world would be dead on the operating table. How could this "exceed" the most pessimistic estimates. Alstrynomics has been blogging about the problem ad naseum for the past year and a half. Soon it will be time to restructure, the only question now is how will it be imposed upon us.
When you don't have enough money to eat, health care reform is meaningless.