How about Bailing out the States?

Still failing to actually understand the problem being faced by Americans everywhere, Congress and the White House have been working feverishly to Bailout large failing institutions. All the while, State budgets across the US are having to be reduced by millions and in some cases billions of dollars.

Florida is looking at an approximate 9% reduction in its budget this coming fiscal year.

Facing a $2.1 billion shortfall in the current $66 billion budget, and as much as $5.8 billion next year, legislative leaders already are talking about eliminating entire state agencies and forcing temporary furloughs for thousands of state workers. – Tallahassee.com

Lawmakers, in Florida, are looking at eliminating programs and possibly forcing some agencies to take furlongs(unpaid vacation) to help minimize the impact of the budget shortfalls.

In Alabama, the Education budget looks like it will take its largest hit in 48 years.

Declining state tax collections forced Alabama Gov. Bob Riley to announce massive cuts in state spending Monday, with public education taking its biggest hit in 48 years and many state agencies looking at double-digit reductions.

Riley declared proration — or across-the-board spending cuts — of 12.5 percent for the $6.3 billion education budget. Riley said he would use half of the state’s $437 million “rainy day” fund to ease the cuts and make the effective proration rate 9 percent. – MSN Money

Many States are looking at creative ways to increase their revenue.

Florida Democrats have proposed raising taxes on Cigarettes. This could have benefits in more than one area. Discourage new smokers and help fund programs that are currently taking up taxpayer money for those injured by smoking.

Crist has repeatedly frowned on a proposal by the American Heart Association, backed by key Democrats, to raise taxes on cigarettes by $1 a pack.

Alabama might be even looking into gambling to help their budget.

The Republican governor said Alabama is one of more than 40 states having trouble balancing their budgets this year due to the recession, but, he said, now is not the time to look at new taxes to balance the budgets — even on gambling halls.

With unemployment increasing in the South, just like the rest of the country, the pocket books of state governments are feeling the pinch. Yet, Congress insists on fixing private company matters instead of Federal and State matters.

The solution to fixing this economic downturn is not to bail out every Tom, Dick and Harry who asks for a hand-out. It is to help States resolve their budget shortfalls with grants, provide the means for easy loans to businesses and job creation though new programs that could be aimed at the Alternative Energy market.



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