Why State Cuts Matter

[babylonsister]

http://www.washingtonmonthly.com/archives/individual/2009_02/016797.php

WHY STATE CUTS MATTER.... When a handful of Senate Republicans slashed over $100 billion from the economic stimulus package, they specifically targeted $40 billion in proposed aid to states. Helping rescue states, Sen. Collins & Co. said, does not stimulate the economy, and as such doesn't belong in the legislation. Democratic leaders reluctantly went along -- they weren't given a choice since Republicans refuse to give the bill an up-or-down vote -- and the $40 billion in aid was eliminated.

It's probably worth taking a moment to consider the consequences of this. States, facing the kind of crisis unseen in generations, are prohibited from running deficits, and are averse to raising taxes, so drastic shortfalls mean drastic cuts -- which in turn make the effects of the recession worse.

They have plundered reserves, enacted hiring freezes and engaged in all manner of budgetary voodoo to shield us from the pain.

But now state governments -- reeling from a historic free fall in tax revenue -- have run out of tricks. And Americans are about to feel it. In some cases, they already have.

Nevada resident Margaret Frye-Jackman, 71, was diagnosed in August with ovarian cancer. She had two rounds of chemotherapy at University Medical Center, the only public hospital in the Las Vegas area.

Soon after, she and her daughter heard the news on TV: The hospital's outpatient oncology services were closing because of state Medicaid cuts. Treatment for Frye-Jackman and hundreds of other cancer patients was eliminated.

Luckily, Frye-Jackman's gynecological oncologist, Dr. Nick Spirtos, decided to open a tiny chemotherapy center in his office's empty storage room.

Today, he treats Frye-Jackman there, along with about 20 more cancer patients who were dumped by the hospital. Frye-Jackman's care is paid for with Medicare and supplemental insurance, but other patients can't cover the cost of full treatment. The doctor has considered putting donation boxes in the lobby.

"If this is what it's like in Nevada, with cancer stuff closing, is it like that everywhere?" said Frye-Jackman's daughter, Margaret Bakes, accompanying her mother to the doctor's recently. "Are all the other states closing stuff too?"

As a matter of fact, yes. Collectively, states are looking at a $47.4-billion gap for 2009, which is likely to get considerably worse in 2010 and 2011. The result, as the LAT noted, will be massive layoffs at the state level and huge cutbacks in services: "Parks will close. Environmental programs will be scaled back. Bus and ferry routes will shut down, possibly sending more drivers onto clogged streets and highways. Schools may go without school nurses, and classes may become more crowded. Sick people who rely on state health programs may instead get sicker."

Cutting state aid from the stimulus bill is a very bad idea. Congress can get the money to states quickly, and give states a much needed boost at exactly the right time. I don't know what Collins & Co. are thinking, but they need to think again.

-Steve Benen

[liberal N proud]

1. More and more it is evident, republicans just don't get it

They don't understand what makes economies grow.

[babylonsister]

2. Or, they 'get' it and are invested in seeing Dems fail. It doesn't

seem as if their constituents' livelihoods matter anymore, if they ever did.

[liberal N proud]

4. It has to be one of those

But their constituents are the corporations and not people.

[Bandit]

5. They not only get it but are jumping up and down with joy

"Parks will close. Environmental programs will be scaled back. Bus and ferry routes will shut down, possibly sending more drivers onto clogged streets and highways. Schools may go without school nurses, and classes may become more crowded. Sick people who rely on state health programs may instead get sicker."
They have shrunk government to the point they can drown it in the bathtub. Notice that Military spending was Included in the Stimulus Bill. And Obama has already stated his Defense Spending for next year will be highest ever on record..and that doesn't count spending on "Wars"

[KharmaTrain]

3. The States Are The Biggest Job Generators Now...

Now wasn't the GOOP supposed to be the party of "states rights"? Ya know, give 'em the money or let them collect and keep their money and do what they think is best. Sure didn't work that way. States got shafted by the booosh regime all over the place. Those tax cuts for the rich cut the bottom line figures many states used thus getting less revenues as well. Then there was the cutbacks and unfunded "mandates" like NCLB that drained a lot of money from education that some states had to go above and beyond to fix...for others it remains a financial mess. Then there was the depletion of the national guard and the S-CHIP and prescription fiascos that forced many states to take on debts rather than deal with even more boooosh crap. Now add to the misery a big drop in both property and sales taxes right at the time when states are racking up record defecits.

Money given to states move to the local economy quicker than any repugnican tax cut could do. They'll go to rebuilding infrastructure the government isn't prepared to deal with as well as health and education. The rub for repugnicans is they only want their rich benefactors to benefit from government money. It's just fine to hand a billion to Blackwater and outsource tax breaks by the billions, but give the money to states...especially those dominated by Democrats...scares the shit out of them. Damn right it does, cause if President Obama and the states succede, they're screwed for years to come.