MIPS
Active Member
- Jan 15, 2010
- 963
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Before Christie is hailed as a hero by the conservative right, he is doing what every other NJ Governor has done in tough economic times.........trickle down costs from the state to the local communities.
His cuts to state subsidies (which are paid by the taxpayers) will have to be picked up by the local taxpayer. Christie claims he cut expenses for state but it was picked up by local tax increases
This is also known as "top down" fiscal discipline.... the alternative would be to wait for local governments to cut expenses before cutting outlays to local governments at the state level, in other words "bottom up" which doesn't work as long as the money faucet at the state level remains wide open.
Local budgets are prepared based on expected state revenue. When the state reneges on its obligation, the local municipality has no choice but to raise taxes. It would be nice to cut school expenses, but once again the state is mandating programs and then holding back funding
Or reduce outlays in other areas or a combination of the two. The worst alternative is to keep spending money you don't have for things you cannot afford.