How bad has it gotten for states in the current economy? Unlike the federal government, the state governments can't just print more money when they need it. They have to rely on infusions of cash from the feds or raise taxes.
Yes, it's gotten so bad that Maine is actually gearing up to tax clown and juggler performances.
Ominously, this is all pre-ObamaCare. No one is sure how much health care reform will cost state governments, but the estimates have gone up steadily. If the bill functions properly, 16 million new people will be pushed onto the Medicaid rolls, for which states will pick up part of the tab. Governor Arnold Schwarzenegger believes ObamaCare will cost California an additional $3 to $4 trillion per year. The Golden State is already collapsing under a budget deficit of $6 trillion with no foreseeable way out.
Everyone knew this was coming. When Massachusetts enacted its own health care reform plan, which ObamaCare was modeled after, costs to the government skyrocketed (and so did premiums to the consumer). Massachusetts Treasurer Tim Cahill has said that the program would have singlehandedly bankrupted the state if it weren't for federal funds bailing them out.
No comments:
Post a Comment