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Are We Headed for A Bailout of State and Local Governments?

By: Brad Jackson (Diary)  |  June 25th, 2012 at 10:00 AM  | 

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On today’s edition of Coffee and Markets, Brad Jackson and Ben Domenech are joined by Francis Cianfrocca to discuss teacher layoffs, shrinking government payrolls and the possibility of bailing out failing states and cities.

We’re brought to you as always by Stephen Clouse and Associates. If you’d like to email us, you can do so at bjackson[at]coffeeandmarkets.com. We hope you enjoy the show.

Related Links:

Spinning the number of teacher layoffs
President Obama warns on teacher layoffs
Chart: Government Employment

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  • renny

    like WI under Walker and NJ under Christie, who have gotten their budgets under control.

    However, public pensions in NJ are in dangers as they are not now being funded, because Christie says the system is broken and he will not continue to pay into its ruin. As I am on a teacher’s pension, I am not sure I see the logic in that reasoning.

    But states like CA and NY are still functioning in bad budget situations, and Bloomberg has said NYC pensions are insupportable because they were $1 billion a year when he started as mayor and were $8.5 billion this year and going up.

    NYC pub. pensions are peculiar in that the union members do not fund their own pensions and do not pay city or state taxes on them. The tax payer carries the whole burden. And, with liberal disability for fire people and cops, 1 in 10 is drawing $100,000 or nearly so annually after minimal years of employment.

    As to teacher layoffs, Harrisburg is gutting its pub. ed. system because both the bd.. of ed and the city are bankrupt. My former school system has been on a three-year hiring freeze, so the staff is shrinking with the attrition of layoffs not being replaced.

    Public unions for decades have been the recipients of the golden eggs produced by the golden goose, but a weak ec. and the Great Recession have revealed the golden goose as an aged and poor sickly creature too often abused and neglected by those it was providing for.

  • http://impudent.edublogs.org/ kyle8

    But we have to resist it.

    • acat

      especially if Romney does not succeed.

      Mew

  • http://conservativemormonmom.blogspot.com ew88

    And the more the GOP Establishment feels the threats of replacement by Tea Party candidates, the more likely they are to along with what their constituents want (think Orrin Hatch, for example). In that sense, even if a Tea Party person isn’t on the ballot in some congressional election, it’s still highly worth voting for the GOP because of the company they’ll have in Congress with others who take conservatism seriously.

  • cactusjack

    Where can the money be gotten to meet deficits in failing Blue States? Not from the Federal government, it’s borrowing is about exhausted too. Net net net, smoke and mirrors pulled away, there are only two places to get the kind of largesse that will be required: 1) from big profitable corporations NOT headquartered in BlueStates (think nationalizing/windfall profit taxing oil companies to death) 2). Blue States themselves, by reversing revenue sharing (just pick Red States with balanced budgets and you have your target list). This could end our union as we know it faster than any other economic or political issue I can think of. If you don’t think Obama would brazenly try something like this in a Second Term, think again. There will be a grievous price to be paid by the Losers if Obama wins again.