How deep into debt have state and local politicians plunged taxpayers? Nobody really knows. The U.S. Securities and Exchange Commission is trying to find out, but a probe of just one state, Arizona, by investigative reporter Mark Flatten of the Goldwater Institute found at least $66.5 billion.That’s more than $10,000 for every child, woman and man in a state running chronic deficits and additional billions in other hidden unfunded liabilities.
Flatten details how politicians got around legal limits on public debt and enriched a clique of insiders who do the deals. Now taxpayers are stuck with the bill.
Exactly how citizens and businesses nationwide blighted by economic catastrophe are going to pay government pensions, bondholders and health-care costs as well as feed the insatiable spending of politicians is, according to a report released recently by the Government Accountability Office, a “challenge.”
The GAO “State and Local Governments’ Fiscal Outlook” update shows that “The fiscal position of the (state and local government) sector will steadily decline through 2060 absent any policy changes.”
How steep is that decline? Slippery slope to bankruptcy and getting steeper every year despite massive tax hikes and revenue increases.
According to the GAO team, “We calculated that closing the fiscal gap would require action to be taken today and maintained for each year (through 2060) equivalent to a 12.7 percent reduction in state and local government current expenditures. Closing the fiscal gap through revenue increases would require action on that side of a similar magnitude.” Read More
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