Cash-Strapped States Facing Budget Crises, Governors Facing Tough Decisions

VIDEO: Jake Tapper on Obamas Budget
Share
Copy

President Obama is set to release his budget plan for next year today, setting up a showdown with Republicans calling for drastic spending cuts to bring down the deficit.

Out in the states, though, the rhetoric is less heated and Democrats and Republicans are sounding strikingly similar, with governors from both parties calling for dramatic budget cuts to tackle massive deficits while pledging to not raise taxes.

Twenty-nine new governors were elected last fall and many are facing tough decisions on how to balance their budgets while retaining public services. All told, states face a combined $125 billion deficit, according to the left-leaning Center on Budget and Policy Priorities.

Almost all the states are required by law to balance their budgets; the federal government is not required to do so.

"The four big things that [governors] spend their money on is education, health care, transportation and public safety. We're seeing pretty big cuts in all of those," said Nicholas Johnson, Director of the State Fiscal Project at the left-leaning Center on Budget and Policy Priorities.

Those cuts are not being well received by Americans. A recent poll by the Pew Research Center found that while Americans are not calling for increased government spending, they have strong opinions when it comes to cutting those services in order to bring down deficits.

Seventy-nine percent said they would not support cuts for funding for K-12 education, 76 percent are opposed to cuts to health care services and 66 percent said no to cuts to public colleges and universities.

California is facing a $25 billion budget deficit and newly-elected Gov. Jerry Brown has his critics howling in protest over his call for large cuts in Medicaid and higher education.

"The times call out for vision and for discipline," the Democrat said in his state of the state address last month. "Discipline so that we live within the revenue which the state collects each year, and vision so that we rise above mere party, act as Californians first, and put our trust in the people."

Brown also ordered government agencies to stop purchasing new cars and to get rid of ones that are not "essential" to state business. He has asked state workers to give 48,000 cell phones, a move that could save the state $20 million.

In New York, Democratic Gov. Andrew Cuomo called his state "functionally bankrupt" and called for cuts to education and Medicaid in order to close a $10 billion budget deficit.

In Florida, Republican Rick Scott rode the support of the Tea Party movement to victory in last November's gubernatorial race. He's now under pressure to make good on his pledges to close the budget gap and cut taxes.

In the budget outline he released earlier this month, Scott proposed cutting state spending by $5 billion, with more than $3 billion cut from education spending. Scott also called for a rollback of corporate income taxes and a reduction in property taxes, adding up to more than $4 billion in tax cuts over two years.

Arizona Gov. Jan Brewer has taken the unusual step of asking the federal government for a waiver so the state can remove nearly 300,000 adults from its Medicaid rolls in order to cut costs.

Obama's Recovery Act, which went into effect in February 2009, gave nearly $150 billion in assistance to cash strapped over two years. But that money is set to run out in June.

Cuomo compared the federal stimulus dollars to an addictive substance.

Page
  • 1
  • |
  • 2
Join the Discussion
You are using an outdated version of Internet Explorer. Please click here to upgrade your browser in order to comment.
blog comments powered by Disqus
 
You Might Also Like...
See It, Share It
PHOTO: A home damaged by a landslide Friday, April 18, 2014 in Jackson, Wyo. is shown in this aerial image provided by Tributary Environmental.
Tributary Environmental/AP Photo
null
Danny Martindale/Getty Images
PHOTO: Woman who received lab-grown vagina says she now has normal life.
Metropolitan Autonomous University and Wake Forest Institute for Regenerative Medicine