State Governments Budget Deficits

State governments have severe budget problems; unlike the federal government, states cannot print money, so they have to make ends meet in some way.

Yet, their politicians have the same bad habits; continuing to spend too much and not correcting the basic problems.

One major example: Expensive public employee pensions, especially when not properly funded, if funded at all.

States’ tax revenues are lower which make financial burdens even more onerous. Taxes cannot be easily raised. It is becoming more difficult to keep looking for this source of easy revenue.

States will simply have to cut back on much of what they’re now offering, and begin tightening belts. They will simply have to restructure public union salaries, fringe and retirement contracts.

This includes resisting federal mandates that force state spending by edict from Washington. ( See the Earl J Weinreb NewsHole® comments.)