Where Did the State Deficits Come From?

Deficit Spending
Image by xampl9 via Flickr

Call me crazy, but I just don’t get it.

Why is it that every single state has these huge deficits that didn’t show up last year? Or the year before? I mean, I’m absolutely dumbfounded by why suddenly everyone has a budget shortage and they claim that it has to do with the recession and such. The obvious only reasoning for it is that they come up with silly ideas of budgeting such as taxing digital transactions, alcohol and such and think that what the potential “bring in” is what they can spend.

Like I said, I don’t know anything about politics and state governments but that’s the only reason I can think of where you can suddenly have a huge dropping out of funds. When you spend more than you have because you think you’re collecting revenue on something instead of actually waiting to spend it after you’ve collected it. One of the biggest mistakes of fiscal responsibility that I’ve ever seen if this is the case. And before people start pointing fingers saying that it’s because we have Democrats, or Republicans or whatever XYZ political party, I find that this is the case across the board. Maybe everyone wants a piece of the stimulus bill. Who knows. But anyone that tries to achieve power eventually abuses it in the same fashion.

In the end, I just want someone explain to me where these huge holes are coming from. I mean, as a citizen that doesn’t have time to do the research because I’m too busy trying to put food on the table, the things from the media usually just talk about the doom and gloom instead of seeing where the issues lie and propose fixes. I’m okay with taxes as long as they serve a legitimate purpose and are not paying for someone’s pet project like building another bridge in a place that already has one. Anyone want to take a stab?

Reblog this post [with Zemanta]
  • I was thinking the same thing. “SURPRISE! you have a 26 Million dollar shortfall”. eh what?

    1) If there were responsible parties handling the budget this would not be a surprise. How do you NOT see a negative budget, especially one of such catastrophic measures? Obviously whoever is in charge in the govt is not doing their job.

    2) Funny (not really), but the same people who did not see the major deficits, are the same ones who control how much tax we get and how it gets used. These are the very same people who want to tell us what fiscal responsibility is. HA!

    3) Why are they spending and not knowing how much take of the “pot” they are taking?

    The government is just too big, and greedy all under the false guise of “free enterprise”. Wrong. The true private sector knows their budgets. The private sector makes the states go around. There is going to be major shake ups at the polls in 2010, for both parties.

  • I was thinking the same thing. “SURPRISE! you have a 26 Million dollar shortfall”. eh what?

    1) If there were responsible parties handling the budget this would not be a surprise. How do you NOT see a negative budget, especially one of such catastrophic measures? Obviously whoever is in charge in the govt is not doing their job.

    2) Funny (not really), but the same people who did not see the major deficits, are the same ones who control how much tax we get and how it gets used. These are the very same people who want to tell us what fiscal responsibility is. HA!

    3) Why are they spending and not knowing how much take of the “pot” they are taking?

    The government is just too big, and greedy all under the false guise of “free enterprise”. Wrong. The true private sector knows their budgets. The private sector makes the states go around. There is going to be major shake ups at the polls in 2010, for both parties.

  • I agree to an extent. Private sector actually does take from the pot without realizing how much is actually going in many times. It’s better managed, but taking on debt to pay your employees while trying to finish a project that will payout later is often done in many types of industries. Construction is one of them.

    What I don’t understand out of it, is that most of these politicians have no sense of business budgeting. It’s like trying to budget and spending what you don’t have based on the fact that you “ARE” going to win the lottery this year. How the hell do you know that? Do you have some reasoning for it? That’s the problem that I have since their budgeting makes absolutely zero sense in both business finance or personal finance.

  • I agree to an extent. Private sector actually does take from the pot without realizing how much is actually going in many times. It’s better managed, but taking on debt to pay your employees while trying to finish a project that will payout later is often done in many types of industries. Construction is one of them.

    What I don’t understand out of it, is that most of these politicians have no sense of business budgeting. It’s like trying to budget and spending what you don’t have based on the fact that you “ARE” going to win the lottery this year. How the hell do you know that? Do you have some reasoning for it? That’s the problem that I have since their budgeting makes absolutely zero sense in both business finance or personal finance.