MaggieMae
Reality bits
- Apr 3, 2009
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Here's a partial list of what Republicans propose:
GOP Budget Cuts | Jamie Dupree Washington Insider
While you peruse the list, keep this in mind. A good message from Ali Velchi, CNN's money guru, from last Sunday's "In The Money" program, which I think sums it up nicely:
GOP Budget Cuts | Jamie Dupree Washington Insider
While you peruse the list, keep this in mind. A good message from Ali Velchi, CNN's money guru, from last Sunday's "In The Money" program, which I think sums it up nicely:
CNN.com - TranscriptsVELSHI: Time now for the XYZ of it. You will be hearing a lot of talk these days about the federal budget deficit and how congress, particularly Republicans in congress, want to slash it. It is a popular position. One that was key to the conservative victory in last year's midterm elections. President Obama got the message. He's been paying more lip service to the issue since then. But here is what you need to know.
The drive to cut federal spending could have a dire impact on already strained state budgets. And that's going to curtail public services where you live. Things like schools, roads, libraries, garbage collection, public swimming pools, and, as we have seen, bad weather response. By last year because of the recession more than a third of state budget expenditures were being paid for by transfers from the federal government. That's a big jump from previous years.
The great recession decimated state budgets. Property taxes dropped along with foreclosures. State tax revenue fell as consumers spent less, and business taxes fell as mom and pops shut their doors. Obviously state income tax dropped along with the number of people who were employed, but states pulled back on their spending and at the same time they were forced to rely more on the federal government, particularly for essential services like hospitals and teachers and emergency services.
So while we're all struggling to figure out what to cut from the federal budget, remember that all the cuts can only come from a small percentage of Uncle Sam's spending pie. The 15 percent of it known as non-security discretionary spending and that is precisely the slice that your state may be relying on to keep your police at full force or your firehouses open. Curbing our government spending is necessary, but the how and the why and the what are equally important.