Old Media coverage of government budget difficulties usually focuses on the here and now, and all the "tough decisions" that have to be made.
Seldom is there ever an examination of how a state or local government entity got into its current fix. Scratch just a little bit beneath the surface, though, and you'll almost inevitably find that an annoying habit of overspending during the good times has left the state or municipality unprepared for when things go even a little bit sour, as they invariably and eventually do.
Sunday's Associated Press report on the budget situations many states governments face was no exception.
(A full vetting of the article, and a chart showing steep rises in spending in most states, is after the jump)
In it, AP reporter Andrew Welsh-Huggins:
- Recited a litany of current woes.
- Failed to mention that most states have allowed spending to greatly exceed inflation during the past several years, and that most are still experiencing increases, though smaller, in tax collections
- Gave those supporting a second round of federal government assistance (the first occurred mostly during 2003 and 2004) a chance to make their case early in the article, while saving a rebuttal for near its end.
- Gave unchallenged quotes to advocates of further tax and fee increases.
Here's how Welsh-Huggins presented the big picture:
As many as 18 states have deficits, totaling $14 billion in the current budget, and 20 forecast spending shortfalls for 2009 — $34 billion when combined.
It is so bad that some governors are debating whether to pressure Congress for a second economic aid plan; this one would focus on upgrading roads, bridges and sewer systems.
"Stimulus that would focus upon infrastructure would be both great for jobs but also would really speak to a need that we're seeing around the country," Democratic Gov. Tim Kaine of Virginia said on "Fox News Sunday."
Governors cite a variety of factors for their economic woes: proposed new federal rules to limit Medicaid spending; relying too much on one-time sources of money, such as payments from the 1998 national settlement with major tobacco companies; and the sluggish economy.
What Welsh-Huggins totally ignores is that during the past four years, state and local government spending has exploded, and is now taking a greater share of income than ever, as shown here (Source: The Tax Foundation; HT to the Foundation's William Ahern for guidance provided; more detailed looks at each state can be found here):

This chart blows the excuses presented by Welsh-Huggins for the situation the states find themselves in out of the water. Here are most of them, with retorts provided:
- From the article: "'Stimulus that would focus upon infrastructure would be both great for jobs but also would really speak to a need that we're seeing around the country,' Democratic Gov. Tim Kaine of Virginia said on 'Fox News Sunday.'" Retort: Hey Tom, your state's tax burden went up 0.5% in a growing economy; you should have plenty of money for that. Why don't you?
- From the article: "'The hardest thing I'm going to have to do is face foster-care parents, disabled adults and children,' said Gov. John Baldacci, D-Maine. In his state, there are back-to-back forecasts of revenue shortfalls of about $200 million." Retort: This is from a governor whose state tax burden is now the second-highest in the nation, and is now taking 1.2% more of Mainers' income? Where did all the money go?
- From the article: Topping the list of troubled states is California. Republican Gov. Arnold Schwarzenegger faces a deficit as high as $16 billion. Retort: See how the Golden State (+1.0%) squanders welfare dollars (at NewsBusters; at BizzyBlog) more than any state in the union. Why not work on that first, before looking at how to make the tax burden even worse?
- From the article: "In Rhode Island, Republican Gov. Don Carcieri is proposing reducing the state's work force by 1,000 to help address an estimated $385 million shortfall next year. He says the situation is the worst in memory." Retort: That's because your tax-burden increase (+1.2%) must be about "the worst in memory."
- From the article: "Gov. Jon Corzine, D-N.J., proposed raising turnpike tolls to pay down the state debt and is suggesting budget cuts. Neither idea is popular, but Corzine says the state has to do something, especially when it comes to highway maintenance." Retort: This is from a state that shut down the government in the summer of 2006, and supposedly solved its problems by mostly raising taxes (tax burden up 0.9% in the past four years). Uh-huh.
- From the article: "In Arizona, Democratic Gov. Janet Napolitano has proposed new borrowing to build schools and shifting some prison costs to counties to address an estimated shortfall of $1.2 billion." Retort: Congrats on the slight decrease (-0.1%) in the tax burden. But borrowing pushes the pain out to the future, but doesn't address the fundamental problem. Unfortunately, other states, including Ohio (+1.4%), are attempting to employ this tactic.
Welsh-Huggins waited until Paragraph 19 to quote South Carolina Governor Mark Sanford, who said that "The idea of borrowing a bunch more money so we can then put it into our pockets so we can then repay it later, I don't think is a great route to go." Since Welsh-Huggins didn't bother to look, he also didn't make the connection that the states which haven't increased their tax burden much, or have in fact reduced it, are, with the exception of Arizona not among the whiners he quoted.
Welsh-Huggins had roughly 700 words to give his readers the full picture. He easily could have, and should have, included information about how the states' profligate spending during the past four years has contributed to their "tough budget times." Why wouldn't he?
Cross-posted at BizzyBlog.com.
—Tom Blumer is president of a training and development company in Mason, Ohio, and is a contributing editor to NewsBusters




















Editor at Large
Comments Policy
No hope for change here
February 25, 2008 - 16:32 ET by kg"Forget change, I want improvement!"
California
February 25, 2008 - 16:46 ET by Jerry MackDemocrat controlled Assembly and Senate along with Rino governor Arnold use following motto when it comes to state budget: Have money, must spend! But it also filters down to counties and cities. L.A. county supervisors voted to spend a million dollars last August to create summer jobs for several hundred teenagers in one section of L.A. county. This was about 30 days before school started. Have not heard a thing about it since.
Good Info, But . . .
February 25, 2008 - 16:49 ET by Junk Science SkepticThat's some good info, but the icing on the cake would have been to include an example or two of horrendously wasteful spending in each of the quoted states. Can't imagine it would have been tough to find plenty of examples.
ABC 2008 (Anybody But Clinton)
More Taxes
February 25, 2008 - 17:11 ET by mattmIn my state the Dems & RINOs have just overridden a veto of a $6.6 Billion spending bill that will increase gas taxes and add other new fees and taxes.
What these idiots fail to realize is that you can't get blood from a turnip. The revenue they seize from one area of the economy is just going to be lost from another area, thus leading to a shortfall...and of course, the obligatory call for more taxes...
How about explaining how politicians
February 25, 2008 - 16:50 ET by FastEdwon't STOP spending? Our "financial wizard" of a gov, jonnie cortizone, stated "But pigs will fly over the Statehouse before there's a realistic level of new taxes or spending cuts that can fix this mess" - and THAT'S the problem - taxes are always used to FIX the problem, and the problem isn't being made by the taxpayers. Yet, the politicos NEVER look to themselves as the cause of the problem.
Oh, and in the great blue state of nj - people are considered rich if they have a household income of about $156,000 - that's the new cutoff for getting money returned as a "rebate" for giving the state monies to spend on state emoloyees holiday pay (state employees get something like 14 paid holidays, 10+ paid sick days, and mim of 10 vacation days a year, on top of a 35 hour week)
There is no sense in being stupid, if you can't prove it! - my dad V
I propose a constitutional
February 25, 2008 - 16:57 ET by mattmI propose a constitutional amendment that would require government spending - on a per item basis - to be 10% lower than expected revenue growth based on the average of the previous ten years, and the surplus be returned to the taxpayers via tax cuts that can never be rescinded.
More Dems in state gov't
February 25, 2008 - 22:36 ET by nkviking75If memory serves, didn't Dems make big gains in the number of statehouses and legislatures they controlled in '06? You don't 'spose that's a factor, do you?
When you put the clowns in charge, don't be surprised when a circus breaks out.
This is what I've been
February 26, 2008 - 03:10 ET by rbosqueThis is what I've been asking, a state as rich as California and we need money? Where the heck is it all going?
I can say for one thing, having worked for a local school district- it goes into the trash after they mishandle their budget. Illegals are also to blame but it's politically incorrect to blame them right? Billions are spent on hand-outs including medicine, the court system and millions on the loss of revenue from tax receipts. This doesn't include the huge private costs of lives, vanadlism and other crimes.
If you go back further than 2003-2004
February 26, 2008 - 21:52 ET by QueasyYou'll see the states were still spending like crazy during the boom years of the 90s. Of course, most did nothing to reduce the spending when the bubble burst and the economy stalled after 9/11.