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11.20.2008 9:35 am

Potential for “job cuts” raised regarding Missouri budget woes

St. Louis Post-Dispatch
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How bad is Missouri’s state budget battle going to get next year?

Even worse than expected, say some lawmakers who have been briefed on the financial situation. While colleague Virginia Young outlined the situation in her Monday story, some Capitol observers are using much starker language than Gov.-elect Jay Nixon, suggesting “job cuts” might be a real possibility.

Meanwhile, with many states in the same boat as Missouri’s — though even worse off because they didn’t have a surplus to start the year — the National Conference of State Legislatures is getting in the bailout line.

The president of the NCSL wrote a letter this week to President-elect Barack Obama asking for federal aid to states.

How bad are states off? Says the NCSL:

So far this year, 31 states have reported that they have collectively addressed a $40 billion shortfall in their FY 2009 budgets, more than triple the amount reported by states in FY 2008. State and local governments are economic engines in that they employ more than 20 million workers or roughly 14 percent of the nation’s workforce.

5 comments

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One wonders if Jay Nixon will get the same coverage Matt Blunt did for making hard choices with the budget.

While Blunt ‘balanced the budget on the backs of the poor’ Nixon will be called a ’statesman’ making the ‘tough decisions’

Which for it…

— tsquare
10:46 am November 20th, 2008

States lining up for a bailout … what a crock. Federal revenue will be dropping too. So I guess the states think they should just keep on spending, and put it on OUR credit card.

In reality, states must spend more during bad times - higher unemployment claims, more social service spending. This means they should be saving money in a “rainy day fund” during the boom years. Instead, they spend every dime that comes in the door, praise themselves for “balancing the budget” and then demand that we go into debt during the bad times. And this is what passes for fiscal responsibility.

— Nick Kasoff
10:53 am November 20th, 2008

I think Missouri should continue to do nothing like it traditionally has. That way it can continue to lead the nation in job losses and escalating crime figures. The legislature in Missouri is safe and secure living the “high life” off the taxpayers and have all the retirement and healtcare benefits they need to last them a lifetime so they don’t need the hassle of worrying about what the “little people” need.

— I think
11:47 am November 20th, 2008

I think this is essentially to be expected when you tack the budget to income–as the job market goes, so goes the state budget.

It’s also a wake up call about the size of state governments. We’ve become interdependent on everything the state has decided to reapportion to us, some reasonable services, some not. All state governments have been just about at the bursting point, inefficient and slothful in responding to changes in the economy. It may be painful, but some sort of change is in order. It’s only fair that government cut back as the families it exists to serve do.

— helen
2:59 pm November 20th, 2008

Imagine that!! Government doesn’t know how to balance a checkbook. If a business or household budgeted the way government does, they would be bankrupt in a few short years.

Government budgets don’t need a scalpel to do the trimming, the need a freaking Stihl chainsaw.

— Amazedbythelunacy
3:03 pm November 20th, 2008