Is there a point at which cutting state and local budgets is counter-productive?

[hedgehog]

Listening to the radio today, it seems that governors are in a race to the bottom trying to cut their state budgets. The same goes for local school board. Some years ago, the paper here published a study suggesting that spending money to run good schools was very cost effective since good schools increased property values. It occurs to me that this applies to a lot of state and local services. At what point do good roads, good schools, libraries, hospitals,etc pay for themselves by attracting people to a locality? At what point do budget cuts start driving people away?

[rucky]

1. I don't think you need an answer, but you make an excellent point.

When these folks start seeing their property values tank, they have the "do-nothing government" they've been wishing for to blame.

[Ken Burch]

2. Well, part of it is that the "starve the beast" mentality still hangs on in some places

And I think it's also likely that the Bushies were cutting revenue sharing(a step that also forced deeper cuts at the state and local levels)in a kind of economic "Burn Paris" strategy. After 2005 or 2006, they probably figured out that their party was on the way out nationally and decided that forcing through even more austerity would be a good method to sabotage whoever replaced them.

[ColbertWatcher]

4. Yup. It's Norquist's wet dream ...

No pun intended.

[Ken Burch]

5. I realized you didn't intend a pun

Still, you do owe me for the bottle of whiskey I have to run out and buy in order to blot that visual of Norquist out of my mind.

[raccoon]

11. If there's a hell, I hope there's a special place for Grover Norquist. nt

[old mark]

3. We have many small towns doing just that - closing libraries, school

programs, etc.
PA state had a long history of doing this with the State mental hospitals, too. The soultion seems to just let mentally ill people wind up in prison with no treatment. Cheaper that way.

mark

[raccoon]

12. Or living under a bridge; that's cheaper too. nt

[Telly Savalas]

6. State and local officials can't just print money to fund a defecit

Smart government investment in infrastructure and public services may pay for itself in the long run, but a lot of governors and local officials are facing huge short term revenue shortfalls due to the recession and are faced with tough choices. That's why you're seeing a lot of budget cuts these days.

But the spirit of you post is correct. The academic term for a city or region that neglects its roads, schools, libraries, parks, and public transit is a "shithole".

[hedgehog]

10. I'm looking at California vs. New York. As near as I can tell, California has

done very well during the last 30 years, but taxes were cut and cut. Now California is really hurting during this slump. New York, especially Upstate New York, has been struggling for the last 30 years, but we maintained our tax rates. (All you have to do is check out the constant claims that New York taxes were driving jobs from the state). We're facing some cuts now, but nothing as draconian as what is being proposed in California. Did the ongoing investment in New York provide a cushion now?

[Romulox]

14. New York has had an infusion of hundreds of billions of taxpayer $$$ flow through it

in the recent past (bailout). In fact, NYC officials argued that denying the ability of Wall Street firms to pay bonuses from taxpayer bailout monies would cripple local economies. (I believe collapsing property values in Manhattan were mentioned. :nopity: )

So the comparison is way off.

[GKirk]

7. I don't know what else...

...they can do. They must work with the amount of money that they have. It's not unlike your budget or mine.

[Donnachaidh]

13. how about reducing the salaries of all the upper levels of their government?

The salaries and perks of the head honchos are almost never cut, while the first services to get cut are needed.

My local mental health facility is booked solid till July, with many people needing counseling and help due to stress and longterm unemployment. What do they do? They CUT emergency walk-in care. Now these unemployed folks have only the option of 911 after they have a meltdown - ER charges, and whatever other costs are involved in emergencies.

Pennywise and pound-foolish, as my Nana used to say. Cut the salaries of the upper pencil pushers to provide the NEEDED help for the people suffering most. There should be NO job protection at ANY level when things are bad. The public SERVANTS need to know that they too can *feel the pain.*

[SheilaT]

8. I know this is just anectodal,

but several years ago in a discussion with someone about the price of houses, taxes, and schools, that person mentioned someone he knew who's bought a home with the lowest local taxes, not making the connection between low taxes and crappy schools, and now could not sell his place. A couple of miles away was a better school district, higher local taxes and, surprise, surprise, a housing market where the homes actually sold.

[pansypoo53219]

9. BUT BUT BUT

WI IS A TAX HELL! so the republiklans always squeal. bet the same in 'taxechusetts'.