NH Bailout Prediction

This morning as I was getting ready for work I was watching Good Morning America as they were discussing the billions of dollars going to corporation after corporation.  Later on I scanned over several news web sites, some of which discussed the growing "revenue" (read as spending) problems here in NH.  The Union Leader is reporting expectations of at least a $250 million deficit at the end of the year.  This got me wondering, when will we be seeing our state crawling to the federal government for it's bailout?

They are already reporting the upcoming meeting Obama has planned with all the state Governors claiming they too are heading to Washington holding their cups out.  CNN reports:

The governors want about $136 billion to use for what they call "ready-to-go projects," like water and sewer projects or building roads and bridges.

WMUR had a short sound byte of Lynch also talking about the upcoming meeting with President Elect Obama.

If you look at the history of growth in our government you'll see time and time again new programs are started at local and state levels that often cost far more then the local communities can afford (or want to afford since they don't all support the programs).  Once the cost grows to great they look to push the cost up a level, either to the state (as we are currently seeing with education spending here in NH) or to the federal government.  And we all know there is no accountability on the federal level so once it gets there the sky is the limit.  And this is how we continue to dig the hole we now find ourselves getting deeper and deeper into every day.

That's also why I predict we'll see John Lynch looking for as much as he can to cover the new programs he has pending in the wings.  Oh yes, you read that right.  He isn't looking to cover expenses we already have, he's looking to spend MORE on NEW programs.  Read this excerpt from an article from the Concord Monitor:

Lawmakers chopped almost $60 million from the state's budget yesterday, with wide-ranging cuts hitting school building aid, environmental programs and hospital reimbursements.

Wow, sounds like Lynch and Company are actually trying to CUT spending right?  Wait and keep reading...

The cuts stripped back many of the new programs lawmakers cited as accomplishments when they passed the budget in 2007


"We're not cutting fat," he [Lynch] said. Instead, he said, "worthy programs" are being deferred to better times.

In other words they are putting off even MORE new spending they planned to shovel onto us the tax payers until they can get away with it or find other ways (read as getting the feds) to cover the bill so they wont be held accountable.  And of course all those people they promised things too, they are now trying to claim it's the greedy NH citizens who actually want to keep their money who are the reasons they didn't get all the things promised to them.

Don't take your eyes off the ball folks.  When you start seeing reports soon after the Governors meeting with Obama discussing how our state has "solved" it's deficit problem, look closer.  Watch for the states to get their bail outs.  And realize what it really means.  It isn't that they found some miracle way to get the money within our means, it's that they found a way to take the money from your left pocket instead of your right and from your kids pockets without you noticing as much.

Governments harangue about deficits to get more revenue so they can spend more. – Allan H. Meltzer (1993)