budget briefing booklet, volume 2

your one-stop-shop for our greatest products

VOL 2

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WHAT’S INSIDE

MEDICARE & SOCIAL SECURITYDrivers of Our Debt

IN THE SPOTLIGHT: MEDICAREAn In Depth Overview of Its Financial Future

IN THE SPOTLIGHT: SOCIAL SECURITYAn In Depth Overview of Its Financial Future

DEFENSE How Bloated Spending is Hurting our Nation’s Security

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STATE FACT SHEETS How Does Your State’s Budget Fare? [click the state to find out]

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MEDICARE &

SOCIAL SECURITY:drivers of our debt

On May 13, 2011, the Medicare and Social Security Boards of Trustees

released their annual reports on the financial status of both programs.

These reports made it clear that the government must address the grow-

ing costs associated with the two largest federal programs. Recently, the

President estimated in his budget that Medicare and Social Security spend-

ing will consume 33-percent1 of all federal government spending for the

government’s next Fiscal Year, which begins on October 1, 2012. With

Americans living longer lives, 10,000 babyboomers retiring a day2, lower

birthrates, and the ever increasing cost of healthcare, the costs of these

programs will continue to grow.

Documented in this budget briefing book, Medicare and Social Security

face an unfunded liability of $38.3 trillion over the next 75-years. To put

this number in perspective, in 2010 the United States government collected

$2.2 trillion3 in taxes.

TRUSTEES LEAN TOWARDS REFORM4

As the nation’s financial condition continues to hamper the American people,

government programs, such as Medicare and Social Security, are no excep-

tion. According to the trustees, these programs are now challenged with

costs that are not sustainable under current government financing; thus, in

order to avoid an added burden to both beneficiaries and taxpayers, modifi-

cations are required without having significant disruptions to the programs.

WHAT ARE THE DRIVERS OF DEBT FOR THESE PROGRAMS?

The growing number of babyboomers entering retirement in comparison with the lower-birth-rate of younger generations.

The rapid increase in healthcare costs per person.

Medicare and Social Security worked fine in previous years when there were

many more workers on the bottom of the pyramid than retirees on top. As

the pyramid begins to flip in the opposite direction, with more and more

retirees being added on top of the pyramid and fewer workers entering the

workforce due to lower birthrates, added with the increased costs of health-

care and the impacts of individuals living longer lives than they did when the

programs were created, it’s easy to see why there are problems.

1 http://www.whitehouse.gov/omb/budget

2 http://pewresearch.org/databank/dailynumber/?NumberID=1150

3 CBO. An Analysis of the President’s Budgetary Proposals for Fiscal Year 2012. Pp. 2. http://www.cbo.gov/

ftpdocs/121xx/doc12130/04-15-AnalysisPresidentsBudget.pdf

4 Status of the Social Security and Medicare Programs, A Summary of the 2011 Annual Reports. Social Security and Medi-

care Board of Trustees. http://www.ssa.gov/oact/trsum/index.html

OVERVIEW

Just the Facts: A Summery of Findings

Medicare 101: What is Medicare

Medicare Hospital Coverage Going Broke

Medicare 201: What’s the Real Story with Medicare’s Other Finances

IN THE SPOTLIGHT:medicare

JUST THE FACTS: A SUMMARY OF FINDINGS

Medicare’s primary trust fund, which collects Medicare payroll taxes and

only funds in-patient hospital care and related hospital costs, will run out of

funds in thirteen years—five years sooner than was projected in last year’s

trustees report. Over the next 75-years, this trust fund faces an unfunded

liability of $3.0 trillion—meaning the money is not in the trust fund to cover

benefits over this timeframe.

Medicare’s other services, such as general doctor visits and prescription drug

coverage, are primarily funded by the general taxes collected by the United

States government. To be clear, they are not financed by the Medicare

payroll tax. Since this percentage of federal funding happens automati-

cally each year, the trustees found these parts of Medicare to be actuarially

sound. However, this is misleading when put in context because over the

next 75-years, these parts of Medicare face an unfunded liability of $28.8

trillion—meaning the federal government has to find a way to pay $28.8

trillion out of its general fund over this timeframe.

MEDICARE 101:

WHAT IS MEDICARE1

Medicare, which was created in 1965, provides healthcare coverage for

individuals in the United States who are 65 and older until their death. In

1972, the program was expanded to provide healthcare for the disabled

who are under 65 years old. In 2006, the program was expanded for a

third time to provide prescription drug coverage for eligible participants (Pp.

249-250).

In 2010, 47.5 million individuals were covered by Medicare (P. 4). According

to the 2010 Census, the U.S. population stands at 308 million2. This means

that over 15% of the U.S. population is currently covered by Medicare.

MEDICARE IS MADE UP OF FOUR KEY PARTS:

A B DC

MEDICARE PART A

funded by federal payroll taxes3 on earnings, Medicare Part A

provides in-patient hospital care and other related services. Funds collected

from taxes go into the Medicare Hospital Trust Fund. For retired individuals

who paid into the system4, there are no premium costs for this service. Cur-

rently, the Medicare payroll tax taxes earnings at “…1.45 percent for em-

ployees and employers, each. The self-employed pay 2.9 percent (P. 257).

“According to the trustees, this “…fund is not adequately financed over the

next 10 years” (P. 4).

MEDICARE PART B

funded by healthcare premiums—monthly payments of the individ-

uals enrolled in the program—and government money (in 2010, nearly 73%

of the total funding came from government money collected from general

federal taxes). Covers doctor appointment costs and other related services.

In 2011, the Part B monthly premium for most beneficiaries is approximately

$1005.

Medicare Parts A and B are considered “traditional” and “fee-for-service”

Medicare.

MEDICARE PART C (i.e., “Medicare Advantage”)

funded by money from Medicare Parts A and B, Medicare Part C

is private insurance approved by Medicare that is contracted “…to provide

Part A and Part B health services” (P. 4). These plans may include prescrip-

tion drug coverage as well. The premiums vary greatly based upon the plan

selected. There are many different options to choose from. For example,

some Medicare Advantage plans may have the cost of a gym membership

included while others may not. In general, such features are reflected in the

price6.

A

B

C

If you have Medicare Part C, you do not have Medicare Part A or B but you

may have Medicare Part D.

MEDICARE PART D

funded by healthcare premiums and government money (in 2010,

nearly 83% of the total funding came from government money collected from

general federal taxes). The plan “pays private plans to provide prescription

drug coverage” (P. 253). Like Medicare Part C, there are many different

options to choose from. In 2011, the average Part D monthly premium is

approximately $407.

MEDICARE HOSPITAL COVERAGE is Medicare Part A. It receives funds

from the Medicare payroll tax (and trust fund reserves), which are used to

pay for in-patient hospital care and other related services (P. 252).

What is a trust fund? A trust fund is a separate account maintained by the

Department of Treasury, which “…may be used only for a specified purpose”

(P. 259). For the Medicare Trust Fund, money that is not used for current

benefits and administrative costs are invested in basic government bonds,

which earn interest for the trust fund (P. 259).

If changes are not made to the program, there will be significant disruptions

in care because not enough money will exist in the program. According to

the trustees, this “…fund is not adequately financed over the next 10 years”

(P. 4). The trustees now estimate that this trust fund will run out of funds in

13-years, five-years earlier than was projected in last year’s report (P. 4).

What happens if the fund goes insolvent? No one knows for sure. “Neither

the Social Security Trust Fund nor the Medicare Trust Fund has ever run out of

money and there are no provisions…governing what would happen in such

event9.”

D

Here are just the facts: in 2010, there were about 3.4 workers paying into

the Medicare Part A system for every beneficiary. In 2030, projections are

there will be 2.3 workers paying into the system for every beneficiary. By

2085, there is expected to be only 2.0 workers per beneficiary (P. 80).

According to the trustees, the current unfunded obligation for Medicare Part

A over the next 75-years is $3 trillion (P. 83).

Currently, the trust fund has $272 billion in funds (P. 4). In 2010, since less

was taken in from Medicare taxes than was paid in benefits, Medicare was

forced to redeem $32.3 billion from its trust fund. In past years, when there

was excess Medicare taxes not used to paid benefits, the remaining funds

were invested in special U.S. government bonds. Like the Social Security

Trust fund, the money from the Medicare Trust fund was used by the govern-

ment for whatever expenses it had at the time. In other words, this means

that the government spent the ‘surplus’ money as soon as it received the

money for general government operations and Medicare, in return, received

a U.S. government bond that earns interest.

MEDICARE 201:

WHAT’S THE REAL STORY WITH MEDICARE’S OTHER FINANCES10

According to the trustees, Medicare Parts B and D are “…adequately fi-

nanced over the next 10 years and beyond…” (Pp. 4–5).

However, this statement is misleading when put in context. In 2010,

73-percent of the costs of Part B came directly from funds the United

States collects in general taxes (109). Likewise in 2010, 83-percent

of the costs of Part D came directly from funds the United States

collects in general taxes (P. 134). Exactly how the government funds

Parts B and D are complex formulas; however, the federal govern

ment is the primary contributor for the costs and will continue to be

so in the future if the law remains unchanged. Therefore, to conclude

that Parts B and D are actuarially strong would be a grave mistake.

Unlike Medicare Part A, which collects the Medicare payroll tax and

has a trust fund for the excess funds it does not spend on benefits,

Medicare Parts B and D rely every year on general federal govern

ment funding, which is not tied to the Medicare payroll tax.

In 2010, general government funds contributed $153.5

billion for Part B (p. 109). According to the trustees, the

current cost for Part B for the next 75-years is $18.9 trillion

(P. 130). In this calculation, the trustees assumed that 73

percent of Part B will be paid for by the federal government

for the indefinite future.

In 2010, general government funds contributed $51.1

billion for Part D (p. 134). According to the trustees, the

current cost for Part D over the next 75-years is $9.9 trillion

(P. 146). In this calculation, the trustees assumed that 75

percent of Part D will be paid for by the federal government

for the indefinite future.

This equals $24.2 trillion in unfunded federal government

liabilities for Medicare over the next 75-years.

Additionally, the Trustees report is flawed because it does not take

into account the blocking of the sustainable growth rate (“SGR”) formula.

The sustainable growth rate formula was enacted to control

Medicare spending in the Balanced Budget Act of 1997. If fully

implemented, SGR would ‘control’ Medicare spending by ‘control

ling’ what doctors are paid for certain Medicare services (Pp. 212-213).

Congress routinely blocks the sustainable growth rate formula on a

“temporary basis.” The current block last until January 1, 2012.

Why temporary? Because it “costs” so much to eliminate the SGR

on a permanent basis. Therefore, Congress prefers blocking it on a

short-term basis.

If enacted in 2012, payments to doctors for certain Medicare services

would immediately fall by 29.4 percent (P. 213). If this were to hap-

pen, many believe that a large amount of doctors would stop seeing

Medicare patients altogether.

Because it is almost certain to be “temporarily extended” beyond

January 1, 2012, the trustees note that the future costs for Medicare

are likely to surpass those shown by the current estimates in the report

(P. 17).

Medicare Part C is funded by Part A and Part B trust funds (P. 192). Medi-

care Part C is private insurance that is contracted “…to provide Part A and

Part B health services” (P. 4). Of the 47.5 million individuals were covered

by Medicare in 2010, 25 percent, chose Part C (P. 4). In 2010, Part A paid

$60.7 billion and Part B paid $55.2 for Medicare Part C (P. 199).

1 In general, unless otherwise noted, information in this section is found in the 2011 Annual Report of the Boards of Trustees

of the Federal Hospital Insurance Fund and Federal Supplemental Medical Insurance Trust Funds. https://www.cms.gov/

ReportsTrustFunds/downloads/tr2011.pdf

2 http://2010.census.gov/news/releases/operations/cb10-cn93.html

3 For the purposes of this document, “payroll tax” also includes Medicare self-employment taxes, which are triggered if you

work for yourself instead of an employer.

4 In general, for the purposes of being “paid into the system,” it means working 10 or more years. https://questions.medi-

care.gov/app/answers/detail/a_id/2305/~/medicare-premiums-and-coinsurance-rates-for-2011

5 https://questions.medicare.gov/app/answers/detail/a_id/2306

6 This information was found by researching various Medicare Part C policies on the internet.

7 Kaiser Family Foundation. “Medicare Part D Spotlight.” http://www.kff.org/medicare/upload/8107.pdf




9 CRS. “Medicare: History of Part A Trust Fund Insolvency Projections.” May 2009. Pg. 3. http://aging.senate.gov/crs/

medicare14.pdf




OVERVIEW

Just the Facts: A Summary of Findings

Social Security 101: What is Social Security

Social Security 201: The Truth about its Finances

Two Prominent Views on the State of Social Security

JUST THE FACTS: A SUMMARY OF FINDINGS

Social Security’s retiree income trust fund, which collects Social Security pay-

roll taxes1 and pays for retirees’ income, will run out of funds in 2036, which

is one-year earlier than was projected in last year’s trustees report.

Social Security’s disability income trust fund, which pays disabled workers a

supplemental income, will run out of funds in seven years.

According to the trustees, the current unfunded obligation for Social Security

over the next 75 years is $6.5 trillion.

SOCIAL SECURITY 101: WHAT IS SOCIAL SECURITY2

Social Security was created in 1935. In general, the program creates a

“basic level of monthly income” once an individual reaches normal retirement

IN THE SPOTLIGHT:social security

age until their death. In 2011, the average Social Security payment for a

retired person is $1,177 per month3. In 1939, the program was extended

to give certain benefits for family members when a parent or spouse who

works dies. In 1956, the program was extended again to provide income

for disabled workers (and their dependents) who are unable, or partly un-

able, to work due to a disability.

In 2010, 54 million individuals were covered by Social Security4. Accord-

ing to the 2010 Census, the U.S. population stands at 308 million5. This

means that nearly 18-percent of the U.S. population is currently covered

by Social Security. Since the program has more retirees being added to

the system and less and less workers paying into it, legislative changes are

required to keep Social Security operating without substantial disruptions to

the program6.

Here are the facts: from 1974 – 2008, there were between 3.2 and 3.4

workers paying Social Security taxes for every beneficiary. In 2010, there

were 2.9 workers paying Social Security taxes for every beneficiary. By

2035, projections are there will be 2.1 workers for every beneficiary7. With

individuals living longer lives than they did in 1935 when the program was

created, and with fewer workers paying into the system due to lower birth-

rates, the system is going broke.

An individual qualifies for Social Security retirement benefits if they work

at least 10-years while contributing to the program with Social Security

payroll taxes. Currently, the Social Security taxes earnings at 6.2 percent

for employees and employers, each. The self-employed pay 12.4 percent8.

The Social Security payroll tax only taxes earnings up to $106,8009. Social

Security also is financed by income taxes on Social Security benefits and in-

terest income earned from the trust fund. To get full Social Security benefits,

you have to reach the normal retirement age. For those born in 1937

or earlier, the normal retirement age in 65. This age is gradually increasing

over time to 67, which will apply for those born in 1960 and the proceeding

years. Individuals can opt to get early retirement benefits at 62; however,

their benefits are permanently reduced. Exact benefits are calculated by

using a complex benefit formula. The benefit formula provides more benefits

relative to wages for low-income earners while providing high-income earn-

ers a degree of equity since they have higher lifetime earning.

SOCIAL SECURITY 201: THE TRUTH ABOUT ITS FINANCES10

Social Security receives its funding from the Social Security payroll tax.

These payroll taxes are deposited into separate trust fund accounts in the De-

partment of Treasury. For excess funds not immediately spent to pay bene-

fits, these funds are invested in special U.S. government bonds (P. 221). From

1984 until 2010, the Social Security payroll tax made a surplus, meaning

more money was taken in through taxes than was paid out in benefits (Pp.

142-143). By law, when the program was running a surplus, the surplus

was “…credited to the Social Security trust funds in the form of U.S. govern-

ment securities. The money itself, however, [was] used to pay for whatever

other expenses the government…” had at the time11. In other words, this

means that the government spent the ‘surplus’ money as soon as it received it

for general government operations and Social Security, in return, received a

U.S. government bond that earns interest.

SOCIAL SECURITY HAS TWO SEPARATE TRUST FUNDS:

OLD-AGE AND SURVIVORS INSURANCE TRUST FUND (com-

monly referred to in the public as the “Social Security

Trust Fund”)—pays retirement income for qualified

retirees (and their dependents) (Pp. 222). Is expected to

run out of funds by 2036, one-year earlier than originally

projected in last year’s trustees report.

1

DISABILITY INSURANCE TRUST FUND—pays income for dis-

abled workers (and their dependents) who are unable, or

partly unable, to work due to a disability (Pp. 222). This

fund is expected to drain its fund by the year 2018.

At the end of 2010, the balance of both Social Security Trust Funds is $2.6

trillion. According to the trustees, the current unfunded obligation for Social

Security over the next 75 years is $6.5 trillion (P. 12).

TWO PROMINENT VIEWS ON THE STATE OF SOCIAL SECURITY12

How bad is the financial situation with Social Security? Is the money in the

trust fund really there? Well, it depends how you view the situation. Here are

two different takes:

Senator Sanders of Vermont: “…We keep hearing that the Social Security

trust fund has a pile of worthless IOUs. The fact is, Social Security invests the

surplus money it receives from workers, from the payroll tax, into U.S. Gov-

ernment bonds, the same bonds China or anybody else purchases. These

bonds are backed by the full faith and credit of the U.S. Government. And

in our entire history—and many of us want to make sure this continues—the

U.S. Government has never defaulted on its debt obligations. The point is,

to say these are worthless IOUs is not dissimilar to saying: Guess what. Be-

cause we have a deep deficit and a deep national debt, we don’t have any

money to fund equipment for soldiers who are in the field in Afghanistan

or Iraq. They are just worthless IOUs, and we can’t fund them. That is, of

course, nonsense.”

Senator Coburn of Oklahoma: “…The flaw in the argument given by my col-

league from Vermont (Senator Sanders) is the assumption that the IOU at the

Treasury for Social Security is good. It is good as long as people will loan

2

us money. It is not any good if they will not. …And having looked at every

aspect of Social Security, I can tell you if we are not able to borrow the $2.6

trillion, the benefits will not be there. The money has been stolen. There is

no trust fund. There is no money there. Congresses, under both Republi-

can and Democratic control, both Republican and Democratic Presidencies,

have stolen money from Social Security and spent it. The money is gone.

…The question is, does this Congress owe… [it] back to Social Security?

Yes. But where do we get the money to repay it?”

1 For the purposes of this document, “payroll tax” also includes Social Security self-employment taxes, which are triggered if you work for yourself instead of an employer.

2 In general, unless otherwise noted, information in this section is found in the GAO Social Security Reform Answers to Key Ques-tions. May 2005. http://www.gao.gov/new.items/d05193sp.pdf

3 http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/13/~/average-monthly-social-security-benefit-for-a-retired-worker

4 2011 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. P. 2. http://www.ssa.gov/oact/tr/2011/tr2011.pdf.

5 http://2010.census.gov/news/releases/operations/cb10-cn93.html

6 Status of the Social Security and Medicare Programs, A Summary of the 2011 Annual Reports. Social Security and Medicare Board of Trustees. http://www.ssa.gov/oact/trsum/index.html

7 2011 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. P. 10. http://www.ssa.gov/oact/tr/2011/tr2011.pdf.

8 http://www.ssa.gov/oact/progdata/taxRates.html

9 http://www.ssa.gov/oact/COLA/cbb.html#Series

10 In general, unless otherwise noted, information in this section is found in 2011 Annual Report of the Board of Trustees of the Fed-eral Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. http://www.ssa.gov/oact/tr/2011/tr2011.pdf.10 In general, unless otherwise noted, the information contained in this section is found in the Status of the Social Security and Medi-care Programs, A Summary of the 2011 Annual Reports. http://www.ssa.gov/oact/tr/2011/tr2011.pdf.

11 CRS. “Social Security: Trust Fund Investment Practices.” October 2010. http://aging.senate.gov/crs/ss5.pdf

12 Congressional Record – Senate. March 16, 2011. Accessible by searching http://thomas.loc.gov/home/LegislativeData.php?&n=Record.

“The biggest threat to our national security is our debt.” – Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff1

“It is no secret that the United States faces a serious fiscal predicament that

could turn into a crisis—of credit, of confidence, of our position in the world

– if not addressed soon…as a matter of simple arithmetic and political real-

ity, the Department of Defense must at least be part of the solution.” – Robert

Gates, Secretary of Defense (2006-2011)2

Washington’s unsustainable spending threatens the economy, the nation’s

credit standing in the world3, and is making the country less secure over

time. The fact is that as the U.S. debt continues to grow, it makes the United

States more beholden to foreign countries, such as China, that finance the

United States’ growing appetite for spending.

DEFENSE: A DRIVER OF FEDERAL DEBT

If President Obama’s 2012 budget for defense is enacted into law, next year’s

national defense spending would consume 20-percent of total government

spending4. Since 2001, funding for defense programs has doubled5. Cur-

rently, no other nation comes close to matching the United States in defense

capabilities or spending.

4 5

DEFENSE SPENDING:How Bloated Spending is Hurting our Nation’s Security

DEFENSE SPENDING:How Bloated Spending is Hurting our Nation’s Security

Last year, Washington spent $700 billion on defense, which represents

43-percent of total defense spending among all countries in the world.6

For government spending in 2011 that is not automatically funded (such as

Social Security spending), many areas of government saw a modest spend-

ing decrease. This was not so for defense spending. In fact, Congress

raised the defense budget by approximately $5.7 billion dollars. 7

THE CONFLICT

While no one questions the need to protect and support our troops in con-

flict, the question arises: should Washington pursue further military commit-

ments and projects, or focus on the level of current debt so that tomorrow’s

troops will have the tools they need?

The U.S. has overstretched itself with defense spending commitments. Currently,

the United States is fighting two major conflicts in foreign countries, retains

troops in countries throughout the world, and is involved in peacekeeping

and nation building missions across the globe. The simple fact is that the

U.S. level of debt is so heavy, it cannot afford to keep defense spending off

the table when it comes to debt reduction8. “The U.S. Government’s ambi-

tions now outstrip its capacities… abroad” in respect to defense spending9.

1 Joint Chiefs of Staff: National Debt Poses Security Threat, Mullen Says. http://www.jcs.mil/newsarticle.aspx?ID=360

2 The American: Gates at AEI: Strategy Must Drive Budget Decisions. May 24, 2011. http://blog.american.com/2011/05/

gates-at-aei-strategy-must-drive-budget-decisions/

3 Foreign Affairs: A Leaner, Meaner Defense. January/February 2011. http://www.foreignaffairs.com/articles/67145/

gordon-adams-and-matthew-leatherman/a-leaner-and-meaner-defense

4 OMB: President’s FY12 Budget. February 2011. http://www.whitehouse.gov/omb/budget/Overview/



6 Stockholm International Peace Research Institute: Military Expenditure Database. http://www.sipri.org/databases/milex

7 OMB: President’s FY12 Budget. February 2011. http://www.whitehouse.gov/omb/budget/Overview/

CQ Weekly: 2012 Appropriations – Defense: Parties Unite to Increase Pentagon Budget. May 30, 2011. http://www.cq.com/

doc/weeklyreport-3879408?wr=U2ZyOGV0Ymg1TTNTcnVnN2hZdip0Zw





STATE FACT SHEETS:How Does Your State’s Budget Fare?

STATE FACT SHEETS:How Does Your State’s Budget Fare?

FEDERAL GOVERNMENT SPENDING:

Total Federal Funds Received (FY 2010 estimated): $10.2 billion

Stimulus Money Awarded: $3,659,407,996

Examples of Stimulus Spending:

The Natural Resources Conservation Service received $145 million

for watershed operations and flood protection in financially dis

tressed counties. Instead, $59 million went to counties with unem-

ployment below the national average. Montgomery received $2

million to investigate converting the city’s garbage into gas.

ALABAMA

BUDGET:

Total State Expenditures (FY 2010 estimated): $24.5 billion

Income Tax Rate (Tax Year 2011): 5 percent

Sales Tax Rate (2011): 4 percent

Total FY 2011 Budget Deficit: $586 million, or 8.3% of the budget

Projected FY 2012 Budget Deficit: $979 million, or 13.9% of the budget

Pension Liability & % of Liability Funded (FY 2009): $41,634,55, 74% funded

ECONOMY:

Economic Growth (2008 to 2009): -2.1 percent

Unemployment Rate (May 2011): 9.6 percent

Foreclosure Rate (May 2011): 1 in every 1,433 houses

http://www.nasbo.org/LinkClick.aspx?fileticket=%252bPqnI4oZw2I%253d&tabid=79

http://www.taxadmin.org/fta/rate/ind_inc.pdf

http://www.taxfoundation.org/publications/show/27023.html

http://www.cbpp.org/cms/?fa=view&id=711


http://www.pewcenteronthestates.org/uploadedFiles/Pew_pensions_retiree_benefits.pdf

http://www.economist.com/blogs/dailychart/2011/01/us_interactive_guide

http://www.bls.gov/lau/

http://www.realtytrac.com/trendcenter/


http://www.recovery.gov/Pages/default.aspx

http://mccain.senate.gov/public/index.cfm?FuseAction=Files.View&FileStore_id=07809d54-2616-4867-b6a0-e8ac3ceeded7

http://recovery.alabama.gov/pr.aspx?id=1838

F ISCAL PROMISES

GOV. ROBERT BENTLEY (R)

“We are in challenging economic times and state govern-

ment must do what every Alabama family is doing right

now and that is find ways to cut back on spending. The

Alabama Commission on Improving State Government will

take an in-depth look at the current cost structure of every

state agency and look for new and effective ways to cut

costs without cutting essential services.”

ALASKA

BUDGET:


Income Tax Rate (Tax Year 2011): No state income tax

Sales Tax Rate (2011): No state sales tax

Total FY 2011 Budget Deficit: No deficit

Projected FY 2012 Budget Deficit: No deficit projected

Pension Liability and % of Liability Funded (FY 2009):

$15,347,768, 61% funded

ECONOMY:

Economic Growth (2008 to 2009): 3.5 percent



http://www.alabama.gov/sliverheader/Welcome.do?url=http://governor.alabama.gov/













Example of Stimulus Spending:

The Federal Aviation Administration allocated $15 million to re-

place Ouzinkie Airport, which averages less than 2 flights a day.

FISCAL PROMISES

GOV. SEAN PARNELL (R)

“I have already met with legislative leadership and many

members here to express my willingness to work together to

restrain government spending. I have asked the leaders, gath-

ered in these chambers, to establish a spending limit with me

early in session so together we can avoid the spending frenzy

at the end of session.”

ARIZONA

BUDGET:


Income Tax Rate (Tax Year 2011): 4.54 percent

Sales Tax Rate (2011): 9.3 percent

Total FY 2011 Budget Deficit: $3.1 billion, or 36.5 percent of the budget

Projected FY 2012 Budget Deficit:

$974 million, or 11.5 percent of the budget


$44,078,394, 78% funded



http://abcnews.go.com/Travel/story?id=8298875

http://www.gov.state.ak.us/parnell/press-room/full-press-release.html?pr=5626







ECONOMY:



Foreclosure Rate (May 2011): 1 in every 210 houses





$1.5 million was slated to change 400 road signs from kilometers to

miles. Residents in the relatively unpopulated southern corridor think

the change will cause confusion.

Researchers at the University of Arizona received $314,964 to

examine what happened after the Big Bang and to develop a course

in astronomy for non- astronomy majors at the University of Cape

Coast in Ghana.

FISCAL PROMISES

GOV. JAN BREWER (R)

“[W]e intend to leave Arizona with a budget that is balanced; fueled

by private enterprise, unencumbered by heavy regulations and un-

necessary rules.”






http://www.bankruptingamerica.org/2010/09/15/wednesday-waste-new-road-signs-will-hurt-local-businesses/

http://www.nsf.gov/awardsearch/showAward.do?AwardNumber=0907998

http://azgovernor.gov/dms/upload/PR_010311_GovBrewerInauguralAddress.pdf

ARKANSAS

BUDGET:







$22,698,906, 78% funded

ECONOMY:







Example of Stimulus Spending: The federal government spent

$1,047 to purchase a riding mower from the Toro Company to

cut the grass at the Fayetteville National Cemetery.

FISCAL PROMISES

GOV. MIKE BEEBE (D)

“If we are to retain the enviable national position we now

hold, we must remain cautious and conservative. … We will












http://www.nytimes.com/2009/11/05/us/05stimulus.html

http://www.stateline.org/live/details/speech?contentId=540474

balance our budget and serve as a model for fiscal responsibility in

difficult times. We will take the steps necessary to make our govern-

ment more efficient and more cost-effective.”

CALIFORNIA

BUDGET:






$25.4 billion1, or 29.3 percent of the budget


$490,585,000, 81% funded

ECONOMY:







Example of Stimulus Spending: The National Institute of Health re-

ceived $823,200 to study the effects of a genital-washing program

in Orange Farm, South Africa.












http://projectreporter.nih.gov/project_info_details.cfm?aid=7814411&icde=5021426

FISCAL PROMISES

GOV. JERRY BROWN (D)

“When dealing with a budget gap in the tens of billions, I must point

out that it is far more than waste and inefficiency that we have to

take out. Yes, government wastes money—and I will be doing a lot

about that.”

COLORADO

BUDGET:

Total State Expenditures (FY 2010 estimated): $29 billion







$54,536,549, 69% funded

ECONOMY:







http://gov.ca.gov/news.php?id=16866













Colorado liquor distilleries, breweries, and wineries received $5 million

in loans. Over a one year period, Colorado spent $247,000 on

road signs to designate which construction projects were funded by

the stimulus. An effort to prevent the state from posting more signs failed.

FISCAL PROMISES

GOV. JOHN HICKENLOOPER (D)

“We view our task in three parts: making the hard decisions to

balance the annual budget; improving how we spend the money

we have; and restoring structural balance to our spending and tax

rules. We cannot fix all of these items this year or even in this build-

ing. But a long-term plan is critical to Colorado’s future.”

CONNECTICUTBUDGET:





Projected FY 2012 Budget Deficit: $3.2 billion, or 18 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $41,311,400,

62% funded

ECONOMY:



http://coburn.senate.gov/public//index.cfm?a=Files.Serve&File_id=a7e82141-1a9e-4eec-b160-6a8e62427efb

http://www.denverpost.com/news/frontpage/ci_14243331















The Mohegan Tribe of Indians will get $54 million in rural develop-

ment loans to build a four-story tribal government center, which will

include a new community center and a practice facility for the Con-

necticut Sun, the state’s WNBA team.

Perry Hill School in Shelton received $176,000 for a “green” cool-

ing system even though renovations are $1.5 million over budget

and dozens of employees, including 27 teachers, have been laid off.

FISCAL PROMISES

GOV. DAN MALLOY (D)

“In the coming weeks and months, you will hear a lot about reduc-

ing the size of government, from the size of my office, to the number

of state agencies. And not just cutting for cutting sake, but re-conceiving

government so that better decisions are made and implemented faster.”

DELAWAREBUDGET:




Total FY 2011 Budget Deficit:




http://abcnews.go.com/Blotter/mohegan-sun-casino-owners-received-54-million-%20stimulus/story?id=10889408&page=2.

http://valley.newhavenindependent.org/index.php/archives/entry/perry_hill_school_over_budget_almost_complete/










$7,615,166, 94% funded

ECONOMY:








A juice importer received $15.5 million to build new apple juice

storage tanks.

FISCAL PROMISES

GOV. JACK MARKELL (D)

“[W]hile next year’s budget requires our immediate attention, we

must not govern only for the short term. We are here to make our

State better for generations to come. Many of the most important

budget savings – the type that last – require action this year but will

not produce significant savings for the next budget. To reduce the

size of government in a thoughtful way, we will look past the next

fiscal year.”








http://whyy.org/cms/news/regional-news/delaware/2010/01/26/wilmington-juice-company-seeks-stimulus-funds/28915

http://www.delawareliberal.net/2010/01/22/governor-markells-state-of-the-state-address/

FLORIDABUDGET:





Projected FY 2012 Budget Deficit: $3.6 billion, or 14.9 percent of the

budget


84% funded

ECONOMY:








Florida received $3.4 million to build a tunnel for turtles to pass

under a highway.

Dry Tortugas National Park received $13.3 million to repair its

main above-water attraction, Fort Jefferson, which is located 70

miles off shore, almost entirely underwater, and accessible only by

airplane, private boat, or ferry.












http://www.baynews9.com/article/news/2010/august/132398/

FISCAL PROMISES

GOV. RICK SCOTT (R)

“[W]e’ve got to reduce state spending and we’ve got to weed out

unnecessary regulations that hinder job growth. … I took the first of

many steps to reduce government spending by taking steps to sell

the two state owned and operated airplanes that currently cost us

$2.4 million a year to operate. We are creating the best climate for

job creation by making the government smaller and less intrusive.”

GEORGIABUDGET:





Projected FY 2012 Budget Deficit: $1.3 billion, or 7.9 percent of the budget


$79,898,410, 87% funded

ECONOMY:







http://www.flgov.com/2011/01/09/governor-scotts-podcast-episode-1/













Atlanta received $47.6 million for a $72 million, 2.62-mile streetcar

project in downtown. The Metropolitan Atlanta Rapid Transit Author-

ity already covers the area.

FISCAL PROMISES

GOV. NATHAN DEAL (R)

“I am proposing that State Agencies reduce their spending on an

average of 4 percent. ... We are now entering a new era of smaller

government and greater personal responsibility. Government must

pull back, but Georgians and our strong communities, big and

small, have what it takes to fill the gap. Our State’s fortunes do not

rise and fall with the size of government.”

HAWAIIBUDGET :




Total FY 2011 Budget Deficit: $594 million, or 11.8 percent of the budget

Projected FY 2012 Budget Deficit: $410 million, or 8.2 percent of the

budget


69% funded

ECONOMY:


http://www.ajc.com/news/rep-lewis-dot-will-683159.html.















The University of Hawaii received $210,000 to study how honey-

bees learn.

FISCAL PROMISES

GOV. NEIL ABERCROMBIE (D)

“We will forge understandings, develop creative solutions and make

changes to the budget in ways that reflect our common values and

best serve the people of Hawaii. It won’t be easy. There will be nec-

essary sacrifices that all of us must share to move us all forward.”

IDAHOBUDGET:





Projected FY 2012 Budget Deficit: $92 million, or 3.9 percent of the budget


74% funded





http://www.campusreform.org/blog/stimulus-waste

http://hawaii.gov/gov/headline-messages/facing-challenges-together.html







ECONOMY:





Total Federal Funds Received (FY 2010 estimated): $3 billion



Heyburn State Park rented 540 goats, at a price tag of $4,950, for

invasive weed management.

FISCAL PROMISES

GOV. BUTCH OTTER (R)

“It all begins with us – the individual – and how we decide to fulfill

the role of being our brother’s keeper … along with responsibly

balancing our budget, there is no task before us more important

than improving Idaho’s economy. That does not mean government

spending. It means stability. It means predictability. And it means

keeping more money in the hands of the people whose innovation

and enterprise actually creates those career opportunities.”

I LL INOISBUDGET:









http://www.recovery.gov/Transparency/RecipientReportedData/pages/RecipientProjectSummary508.aspx?AwardIdSur=67567&AwardType=Grants







budget


51% funded

ECONOMY:








Northwestern University received $712,883 to develop a model of

machine-generated humor. The project will “create intelligent come-

dic performance agents and deploy them both on- and off-line for

the enjoyment and illumination of everyday citizens.”

FISCAL PROMISES

GOV. PAT QUINN (D)

“We will strengthen our economy. We will do that and we will do

that very, very soon. I command all of both parties to work together

to reach a point where I believe we can enact very quickly a sound

budget, a balanced budget, that pays the bills of the stay Illinois,

that pays our obligations and also makes sure that our economy is

strong for today and in the future.”









http://www.research.northwestern.edu/stimulus/hammond.html

http://livepage.apple.com/

INDIANABUDGET:





Projected FY 2012 Budget Deficit: $270 million, or 2 percent of the budget


67% funded

ECONOMY:








The Purdue University Airport in West Lafayette received $665,000

to replace its eight-foot perimeter fence with an 11-foot fence to

prevent animal strike incidents. The airport has reported only 14

such incidents since 1990.












http://www.lafayette-online.com/purdue-news/2009/05/purdue-airport-gets-stimulus/

FISCAL PROMISES

GOV. MITCH DANIELS (R)

“We will take the actions necessary to limit state spending to the

funds available. We will protect struggling taxpayers against the

additional burden of higher taxes. We will continue improving our

jobs climate by holding the line on taxes as our competitors take the

easy way and let theirs rise. We say tonight, whatever course others

may choose, here in Indiana we live within our means, we put the

private sector ahead of government, the taxpayer ahead of every-

one, and we will stay in the black, whatever it takes.”

IOWABUDGET:






budget


81% funded

ECONOMY:


















Iowa state legislators used $11 million to buy new cars for the state

vehicle fleet even though nearly four dozen of the state’s existing

cars haven’t even been used.

FISCAL PROMISES

GOV. TERRY BRANSTAD (R)

“[W]e have too much government—state, county, city, school, lo-

cal—and it must be reduced. For too long, we have papered over

the fact that our appetite for government exceeds our pocket book

to pay for it. As my 86-year-old dad, Edward, who is with us today

would say, ‘Our eyes are bigger than our wallet.’ Our auditor tells

us that at least 15% must be permanently eliminated from govern-

ment to make our books balance once and for all. And I aim to

make sure we do it and do it now. We will all share in the sacrifice,

while protecting those who need our help. But we will remove the

lead boots of excess government from our economy. And without

that burden, we will be able to run like the wind in the race to

prosperity.”

KANSASBUDGET:




http://www.radioiowa.com/2009/04/16/gop-lawmaker-state-should-stop-buying-new-cars/

https://governor.iowa.gov/2011/01/the-governors-inaugural-address/






budget


64% funded

ECONOMY:








The Kansas legislature authorized $39.7 million in Build America

Bonds for the statehouse renovation, which includes upgraded office

space and indoor parking for Kansas politicians.

FISCAL PROMISES

GOV. SAM BROWNBACK (R)

“Growing the Kansas economy is my first priority. We must take

bold steps today to create economic growth tomorrow. In saying

this, however, let me be clear; we cannot government-program or

borrow our way into a stronger state economy. We cannot hope for

the best and paper over the worst.”











http://www2.ljworld.com/news/2009/aug/07/stimulus-funds-figure-project-renovate-kansas-stat/?kansas_legislature


KENTUCKYBUDGET:





Projected FY 2012 Budget Deficit: $780 million2, or 9.1 percent of the

budget


58% funded

ECONOMY:








$357,710 was used to repair the Fitchburg Furnace stonework and

allow historians to conduct research.












http://www.kentucky.com/2009/08/10/889103/historic-furnace-to-get-stimulus.html

FISCAL PROMISES

GOV. STEVE BESHEAR (D)

“I’ve cut more than a billion dollars in state spending in three years

and shrunk the state workforce to the smallest it’s been in a genera-

tion. And I’ve balanced this budget eight times without raising any

broad-based taxes on Kentucky families and businesses.”

LOUISIANABUDGET:




Total FY 2011 Budget Deficit: $1 billion, or 12.9 percent of the budget


budget


60% funded

ECONOMY:






http://www.governor.ky.gov/media/audiovideo/20101229aboutKentucky.htm













The city of Shreveport used $1.5 million on mold remediation for a

housing complex it was considering for demolition.

FISCAL PROMISES

GOV. BOBBY J INDAL (R)

“In Washington, the answer always seems to be more borrowing,

more spending, and higher taxes. ... In Louisiana, we’re doing

more with less…. By working to right-size state government, we’ve

reduced the number of government positions by more than 6,300

since entering office. The budget for the current fiscal year is $4.2

billion less than the last fiscal year … we cannot hide from the

challenges we face. That’s why our budget challenges will require

sacrifice, and no government agency or program is off limits when

it comes to reducing the size of government.”

MAINEBUDGET :







73% funded


http://www.hud.gov/offices/oig/reports/files/ig1061001.pdf

http://www.thetowntalk.com/article/20110117/NEWS01/101170330







ECONOMY:




FEDERAL GOVERNMENT SPENDING :




$102 million in funds was used to pay down hospital debt stemming

from services provided to Medicaid patients.

FISCAL PROMISES

GOV. PAUL LEPAGE (R)

“The taxpayers tired of footing the bill for a bloated establishment

in Augusta. It is time to make state government accountable. It is

time to deliver value. It is time to put people first. … While we have

a generous spirit in Maine, we do not have limitless resources. Our

programs have to be focused on Maine residents, we must make

every effort to move people from dependency to self-sufficiency and

we must have a tiered system that rewards work and progress.”

MARYLANDBUDGET:








http://www.wlbz2.com/news/local/story.aspx?storyid=100877&catid=3

http://www.maine.gov/tools/whatsnew/index.php?topic=Gov_Speeches&id=180886&v=article2011






budget


65% funded

ECONOMY:

Economic Growth (2008 to 2009): 0 percent







$30,000 has been granted to University of Maryland researchers to

study the effects of methamphetamine on the sex drives of female rats.

FISCAL PROMISES

GOV. MARTIN O’MALLEY (D)

“With tough but fiscally responsible choices, we cut $5.6 billion in

state spending and reduced the size of our government. As we look

ahead, we know these next four years will not be easy. Unemploy-

ment and foreclosures remain unacceptably high, wages remain

stagnant, and our national recovery has only just begun. We have a

long way to go. None of us has all the answers, but you and I rightly

sense what is at stake right now.”


v








http://www.campusreform.org/blog/stimulus-waste

http://www.governor.maryland.gov/speeches/2011inauguration.pdf

MASSACHUSETTSBUDGET:







68% funded

ECONOMY:




FEDERAL GOVERNMENT SPENDING :




The Federal Emergency Management Agency provided a tour boat

company with a $43,214 terrorism prevention grant.

The Massachusetts Institute of Technology was awarded $435,271 to

develop iPod Touch or smartphone apps to teach introductory biol-

ogy to high school students.












http://www.hy-linecruises.com/documents/2010Hy-%20LineFerryBrochures.pdf


FISCAL PROMISES

GOV. DEVAL PATRICK (D)

“Our budget reflects the difficult economic times. Already during this

recession, we have solved a budget gap of more than $12 billion.

That has meant that we have cut many worthy programs and ser-

vices, eliminated over 2600 state jobs, frozen or cut wages, negoti-

ated concessions from state employee unions, squeezed efficiencies

out of every corner of government, and passed important reforms to

save millions.”

MICHIGANBUDGET:







79% funded

ECONOMY:




http://www.mass.gov/?pageID=gov3terminal&L=3&L0=Home&L1=Media+Center&L2=Speeches&sid=Agov3&b=terminalcontent&f=text_2010-06-30_budget&csid=Agov3














$3.8 million was appropriated for the Old Tiger Stadium Con-

servancy – a group dedicated to finding a new use for the Detroit

Tigers’ former stadium.

$7.5 million was used to construct a new terminal with stone fire-

places and exposed log beams in a tiny northern Michigan airport.

The airport serves an average of only 72 departing passengers a

day.

FISCAL PROMISES

GOV. RICK SNYDER (R)

“What we’re talking about today should have happened decades

ago, generations ago. It’s absolutely critical that we have transpar-

ency and accountability in financial information. … This is not about

cutting yourself to prosperity. It’s not the time to cry ... to whine

about it. It’s time to go to work.”

MINNESOTABUDGET:




Total FY 2011 Budget Deficit: $4 billion, or 25 percent of the budget




http://www.cnn.com/2009/POLITICS/04/14/earmarks/index.html

http://www.usatoday.com/travel/flights/2009-12-13-airports-side_N.htm

http://detnews.com/article/20110201/OPINION03/102010326/Gov.-Snyder-sets-stage-for-tough-calls







77% funded

ECONOMY:








Jefferson Lines received $2.85 million to purchase several new

luxury buses.

The city of Eagan matched a $1.34 million award for a ground

source heat pump system, which will serve the ice rink in the city’s

civic arena.

FISCAL PROMISES

GOV. MARK DAYTON (DFL)

“My second, urgent priority is to clean up the state’s financial mess,

a responsibility I will share with the new Legislature and, ultimately,

with all of you. Some people think eliminating a $6.2 billion deficit,

almost 20% of expected revenues, will be simple and easy. I don’t.

As my friend and former colleague, Senator Tom Harkin of Iowa,

likes to say, “For every complex problem, there’s almost always a

simple solution. And it’s almost always wrong. … My proposed

budget solution will be reasonable, balanced – and painful – be-

cause I see no easy alternative.”







http://www.duluthnewstribune.com/event/article/id/179889/

http://finance-commerce.com/2010/08/two-new-minnesota-ice-arena-projects-aim-to-save-big-on-energy-consumption/

http://mn.gov/governor/newsroom/pressreleasedetail.jsp?id=9252

MISSISSIPPIBUDGET:






budget


67% funded

ECONOMY:








Choctaw Central High School used $190,000 to paint a metal

canopy at the school’s baseball field and to repair and replace a

retaining wall behind the school’s concession stand.













FISCAL PROMISES

GOV. HALEY BARBOUR (R)

“Despite the worst recession in generations and a steep drop in

revenue, we’ve kept our budget balanced by cutting spending and

without depleting all our reserves. ... I realize this is an election

year, and every penny of appropriated spending has a constitu-

ency. You will get pressure to spend more for this and spend more

for that. As Governor I have cut the budget by a total of about

$700 million in just the last two years. Just as our constituents have

cut back, they expect state government to cut back. They know the

alternative is raising taxes, because government has no money

except what it takes from taxpayers.”

MISSOURIBUDGET:






budget


79% funded

ECONOMY:















The scientists at the University of Missouri received $180,935 to

develop freezing protocols for epididymal rat sperm.

FISCAL PROMISES

GOV. JAY NIXON (D)

“[I] won’t be satisfied until all Missourians can provide for their

families. How will we do it? By fighting hard every day for every

job. By making government smarter and more efficient. By invest-

ing in strong communities to attract and keep good jobs, and by

balancing our budget without raising taxes. ... We will continue to

be aggressive and relentless, fighting every day for every job. And

we’ll continue to be aggressive and relentless in making government

smarter and more efficient. We’ve kept our fiscal house in order with

prudent financial controls, rigorous cost reductions, and smarter,

more efficient government … fiscal responsibility is a value we share

here in the Show-Me State. ... These decisions are never easy, but

they are necessary.”






http://blogs.riverfronttimes.com/dailyrft/2010/08/john_mccain_university_of_missouri_federal_stimulus_money_freeze_rat_sperm.php

http://governor.mo.gov/newsroom/speeches/2011/2011_State_of_the_State.htm

MONTANABUDGET:







74% funded

ECONOMY:

Economic Growth (2008 to 2009): 0 percent







$260,112 went to New York artist Jason Middlebrook to construct a

public sculpture outside a not-yet-built federal courthouse in Billings,

Montana.

FISCAL PROMISES

GOV. BRIAN SCHWEITZER (D)












https://www.fbo.gov/index?s=opportunity&mode=form&id=1c3596fcf6a55cc5f68ebf0d10ba9366&tab=core&_cview%20=0,

http://governor.mt.gov/speeches/speeches.asp?ID=182

“Montana expects us to get a few things and to get them right. First,

they expect you, this Legislature, to get a balanced budget back to

my office in 90 days. Second, this is important, they expect you to

reform a bloated, unworkable workers compensation system that is

fair for workers and helps small business start and grow in Mon-

tana. Third and this might be your most important task and if you

get it right it will create thousands of jobs in Montana, if you get it

wrong or you don’t finish it there will be pink slips that go to work-

ers across Montana.”

NEBRASKA

BUDGET:






budget


88% funded

ECONOMY:

















$7 million in funds is being used to build a bridge in Thedford, a

town of 168 residents, to help avoid a 30 second wait at a local

train crossing.

FISCAL PROMISES

GOV. DAVE HEINEMAN (R)

“We wisely built up our cash reserve as a hedge against the slowing

national economy. We worked together to control the growth of

state spending and to pass balanced budgets without raising taxes.

We did this in spite of the fact that revenues in fiscal years 2009

and 2010 were less than fiscal year 2008. Now Nebraska is in bet-

ter shape than most of America. Together we built a strong founda-

tion for the future because we didn’t spend money we didn’t have

and while three-fourths of the states have raised taxes since 2008,

Nebraska has not.”

NEVADABUDGET:








http://amfix.blogs.cnn.com/2010/01/28/a-small-towns-big-bridge-called-a-stimulus-waste/








72% funded

ECONOMY:








$2 million went to a fire station, which doesn’t actually have any

firefighters.

FISCAL PROMISES

GOV. BRIAN SANDOVAL (R)

“I am calling on all branches of government to achieve efficiencies

at every turn so that we might spend less and serve more.”

NEW HAMPSHIREBUDGET:


Income Tax Rate (Tax Year 2011): State income tax limited to 5 perecent on

dividends and interest income only







http://www.foxnews.com/politics/2010/02/04/millions-doled-questionable-jobs/

http://nv.gov/WorkArea/linkit.aspx?LinkIdentifier=id&ItemID=4294968921&libID=4294968921





Projected FY 2012 Budget Deficit: Size unknown


58% funded

ECONOMY:






Stimulus Money Awarded: $978,605,056


$150,045 was used to preserve and resurface a bridge built in

1860 that doesn’t connect to any roads and ends with an eight-foot

dropoff.

FISCAL PROMISES

GOV. JOHN LYNCH (D)

“To balance the budget, we must continue assessing how we pro-

vide every state government service – and decide what services we

should provide. But our reductions should not come at the expense

of our most vulnerable citizens. An important part of reaching that

goal will be continuing to reform state government and improve ef-

ficiency.”










http://www.wmur.com/r/24608274/detail.html


NEW JERSEY:

BUDGET:






budget


66% funded

ECONOMY:








Atlantic city used $276,000 to purchase playground equipment.

FISCAL PROMISES

GOV. CHRIS CHRISTIE (R)

“When I talk of controlling spending, I am doing it for a reason. I












http://pressofatlanticcity.com/news/press/atlantic_city/article_dead51d8-07c0-11df-9e85-001cc4c002e0.html


am not proposing to cut spending just for cutting’s sake. I am fight-

ing this fight because we have to be truthful about what we can’t

afford—whether it is health and pension benefits, which are out

of line with the rest of the country, or a tunnel, which we can’t pay

for. I am asking for shared sacrifice so that when we leave here,

New Jersey will be more fiscally sound than when we got here. I am

asking for shared sacrifice in cutting what we don’t need so that we

can invest in what we absolutely do need.”

NEW MEXICOBUDGET:






budget

Pension Liability and % of Liability Funded (FY 2009): $29,003362,

76% funded

ECONOMY:

















$212 million will be used to finance a demolition project at the

Alamos National Laboratory.

FISCAL PROMISES

GOV. SUSANA MARTINEZ (R)

“We must tell New Mexicans the truth: our financial house is a mess

and it’s time we clean it up. ... In the past, New Mexico’s serious

budget problems have been papered over with unrealistic projec-

tions and temporary infusions of Federal stimulus dollars. This

allowed politicians to shirk responsibility and avoid tough decisions.

But I am here to tell the people of New Mexico that the days of kick-

ing the can down the road are over. … During difficult economic

times, balancing the budget is not easy, but how we choose to go

about the task is critical because our budget blueprint is a statement

about our values ... the truth is, the waste is there and it must be

eliminated …”

NEW YORKBUDGET:






http://www.kob.com/article/stories/S1269149.shtml

http://www.governor.state.nm.us/uploads/FileLinks/20e5f2e740f34a2297a940e2bacdfcce/011811_1.pdf





Projected FY 2012 Budget Deficit: $10 billion, or 18.7 percent of the

budget


101% funded

ECONOMY:








Columbia University received $112,437 to provide summer re-

search opportunities to three high school students and three college

students.

The Department of Health and Human Services used $25.8 million

for a contract with Ketchum, Inc. to help build consumer confidence

regarding electronic medical records.

FISCAL PROMISES

GOV. ANDREW CUOMO (D)

“We need to transform our budget…. We need to hold the line

on taxes, we need a state-spending cap and we need to close this

$10 billion gap without any borrowing. We need to transform the

budget process that we use in this state.”










http://www.propublica.org/article/pr-firm-behind-propaganda-videos-wins-stimulus-contract


N. CAROLINABUDGET:






budget


97% funded

ECONOMY:








The University of North Carolina at Charlotte received $762,372

to create a program called “Dance Draw” where UNCC dance

students wear wireless computer mice on their chests and wrists to

“draw” abstract geometric shapes on computers.The North Carolina

State University Insect Museum, which averages 44 visitors daily,

received $253,123.












http://www.wcnc.com/news/Dancing-Stimulus-Project-Has-Critics-97677354.html

http://www2.wnct.com/news/2010/aug/04/5/gop-senators-say-stimulus-money-wasted-north-carol-ar-323194/

FISCAL PROMISES

GOV. BEVERLY PERDUE (D)

“My short session budget adjustments reflect a state facing con-

tinued fiscal challenges. Even as our economy is showing signs of

recovery, families across our state still worry about what the future

holds. Like businesses and families statewide, North Carolina

government is doing what it must do in these tough economic times

-- tightening its belt, scrutinizing every expenditure, and taking

care of the basics.”

N. DAKOTA :

BUDGET:







81% funded

ECONOMY:




http://www.osbm.state.nc.us/files/pdf_files/2010_budget.pdf














The Audubon National Wildlife refuge received $6.1 million to

build a new administration and visitor center. The refuge averages

80 visitors a day.

FISCAL PROMISES

GOV. JACK DALRYMPLE (R)

“I don’t mean to suggest that we are somehow immune to the na-

tion’s economic woes. It reaches us all, and as a state, we will have

174 million fewer dollars in federal funding in human services

alone. But in North Dakota — unlike most other states — we are

setting our own course and reaping the rewards of our hard work,

our careful fiscal management, our pro-business climate, and our

diversified economy.”

OHIOBUDGET:




Total FY 2011 Budget Deficit: $3 billion3, or 11 percent of the budget

Projected FY 2012 Budget Deficit: $3 billion4, or 11 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $171,194,371, 66% funded











ECONOMY:








Cincinnati’s John Weld Peck Federal Building received $34 million

for a “window makeover.”

FISCAL PROMISES

GOV. JOHN KASICH (R)

“First of all, you need to balance a budget and we’re cutting taxes

out here. We had a tax cut that went into place on January 1. We

will preserve it. We will balance the budget, and we will do it with

a reform-oriented restructuring attitude, number one. Number two,

regulatory reform. We’re going to get rid of silly rules and regula-

tions, involve the big, you know, the chambers of commerce, the

small business community and all of my cabinet directors know,

number one, it is jobs. So therefore, eliminate regulations.”

OKLAHOMABUDGET:








http://republicanwhip.house.gov/blog/2010/05/weekly-waste-watch-week-45.html

https://w3.nexis.com/new/docview/getDocForCuiReq?lni=51Y3-GBK1-DXJ2-J3VJ&csi=373322&oc=00240&perma=true







57% funded

ECONOMY:








The town of Boynton was given $89,298 to replace a quarter-mile

stretch of sidewalk that was replaced only five years ago.

FISCAL PROMISES

GOV. MARY FALLIN (R)

“Our state is now confronting yet another challenging budget year.

But with that challenge comes the opportunity to seriously examine

how we conduct the people’s business. It is time to ask the probing

questions, the “why” questions – why have we done it like this for

years and why can’t we consider a different approach – a new

approach – a modern approach. And, yes, we must be coura-

geous and willing to move forward each time we find a better way,

a better solution for the benefit of the people of Oklahoma. ... My

administration will be focused on creating jobs and growing our

state economy, not our state government.”










http://www.news9.com/global/story.asp?s=12917360

http://www.ok.gov/governor/Inaugural_Address.html

OREGONBUDGET:




Total FY 2010 and 2011 Budget Deficit: $4.77 billion5

Projected FY 2012 Budget Deficit: $1.8 billion6, or 25 percent of the

budget


86% funded

ECONOMY:







Examples of Sti mulus Spending:

Eugene used $78,979 to add a last-minute public art installation

to a bridge project. Portland spent $900,000 on new bike signs,

despite having similar signs already in place.

FISCAL PROMISES

GOV. JOHN KITZHABER (D)












http://coburn.senate.gov/public//index.cfm?a=Files.Serve&File_id=4a184ddb-cd85-4052-b38b-5a1116acca8c

http://coburn.senate.gov/public//index.cfm?a=Files.Serve&File_id=4a184ddb-cd85-4052-b38b-5a1116acca8c

http://governor.oregon.gov/Gov/media_room/speeches/s2011/0110_inaugural_remarks.shtml

“[T]his is the legislative session when we stop kicking the

can down the road and start reshaping Oregon’s state

government. Instead of creating a budget that does less of

the same in the hopes that we will later be able to do more

of the same, I will be proposing a budget and structural

reforms that will do things differently….”

PENNSYLVANIABUDGET:






budget


81% funded

ECONOMY:

Economic Growth (2008 to 2009): -1 percent


















A local ice rink received $1 million for refurbishment.

FISCAL PROMISES

GOV. TOM CORBETT (R)

“We need good government. The people now demand it. And they

deserve it. We will lead the way toward a government that under-

stands that, just as families have found a way to live within their

means, it too must budget in a way that is responsible and honest, a

government that has the courage to find fiscal strength in restraint, a

government that shows compassion for those most in need and rec-

ognizes its citizens’ great investment, a government that must yield

them a hopeful, realistic return.”

RHODE ISLANDBUDGET:






budget


59% funded







http://citizensvoice.com/leighton-penguins-will-manage-new-ice-rink-1.667021

http://www.portal.state.pa.us/portal/server.pt/document/1036829/governor_tom_corbett_delivers_inaugural_address

ECONOMY:








$550,000 went to build a skateboard park, tennis courts, and bas-

ketball courts in Pawtucket.

FISCAL PROMISES

GOV. L INCOLN CHAFEE ( I )

“Our goal is a budget that provides adequate investments in state

services, fosters realistic expectations on the part of taxpayers, and

ensures fiscal stability that will allow existing businesses to thrive

and attract outside employers to bring good, high-paying jobs to

our state. Fiscal stability is essential for job creation and economic

growth.”

S. CAROLINABUDGET:












http://www.projo.com/news/content/PAWTUCKET_STIMULUS_SKATEPARK_03-17-09_VADM6E0_v119.36af019.html

http://www.ri.gov/press/view/12820



budget


69% funded

ECONOMY:








The South Carolina Department of Natural Resources received $1.7

million to improve the quality of an oyster habitat.

F ISCAL PROMISES

GOV. NIKKI HALEY (R)

“I believe that in order for the public to trust us, as we make deci-

sions that may be seen by some as unfair or even callous, we must

be honest with them: this budget year is going to hurt … we will

never again have such an opportunity to reform and correct the

spending habits and processes that have brought us to this dire

situation. This year has to be the year we make the tough but right

decisions so that, going forward, this process doesn’t hurt as much

as it does today.”









http://www2.wspa.com/news/2009/apr/19/officials_hope_to_restore_oyster_habitat-ar-17440/

http://www2.wspa.com/news/2009/apr/19/officials_hope_to_restore_oyster_habitat-ar-17440/

http://governor.sc.gov/news/Documents/state-of-the-state.pdf

S. DAKOTABUDGET:






budget


92% funded

ECONOMY:








Gavins Point National Fish Hatchery received $20,000 to be spent,

in part, on a new freezer to store fish sperm.

FISCAL PROMISES

GOV. DENNIS DAUGAARD (R)












http://www.yankton.net/articles/2009/06/09/community/doc4a2dfb5c4ff02892112180.txt

http://livepage.apple.com/

“My budget proposal will clearly demonstrate, to you and to the

people of South Dakota, that if we truly want to balance our budget

without raising taxes, as I do, we must be prepared to make some

very difficult decisions. I intend to lead by example. The agencies

under the control of the governor will be cut by at least ten percent.

The governor’s office will be cut ten percent overall. Every member

of my cabinet has agreed to cut his or her salary by at least ten

percent. And I will be cutting my own salary by fifteen percent.”

TENNESSEEBUDGET:


Income Tax Rate (Tax Year 2011): State income tax of 6 percent on divi-

dends and interest income only



Projected FY 2012 Budget Deficit: Size unknown


90% funded

ECONOMY:

















A $38.6 million construction project on Highway 66 forced busi-

nesses to lay off workers and trim operating hours. Rubble and

concrete barricades from the project were blocking business doors.

FISCAL PROMISES

GOV. BILL HASLAM (R)

“As we slowly reverse the negative trends of the economic downturn

that gripped our state and nation, we will be diligent in watching

the weight of state government, going on a diet of efficiency and ef-

fectiveness. State government will live within its financial means, and

a Top to Bottom review will set priorities and establish measurable

goals. We face few easy alternatives in closing the budget gap and

balancing the budget – difficult choices face us. We will make the

right decisions that point us toward the future – while doing so with

a measure of compassion.”

TEXAS

BUDGET:











http://www.knoxnews.com/news/2010/may/11/economic-stimulus-turns-into-hindrance/?print=1

http://news.tennesseeanytime.org/node/6600


budget


84% funded

ECONOMY:








The city of Euless received $454,200 in funds to replace lighting at

its Softball World facility.

F ISCAL PROMISES

GOV. RICK PERRY (R)

“[F]or the good of the 25 million pioneers we call Texans, for a

people who work hard to get ahead – we must balance our budget

without raising their taxes … We will protect them, support them

and empower them, but cannot risk the future of millions of taxpay-

ers in the process. We must cut spending to keep our economic

engine on track. As legislators do the hard work of trimming agency

budgets, the headlines will be dominated by impacted constituen-

cies, but these tough times dictate government doing more with less.

If we cannot exercise fiscal discipline in governing Texas, I doubt it

can be achieved anywhere least of all in Washington.”








http://www.dallasnews.com/news/community-news/fort-worth/headlines/20100803-Euless-softball-complex-upgrade-among-projects-5470.ece

http://governor.state.tx.us/news/speech/15585/

UTAHBUDGET:






budget


86% funded

ECONOMY:








Salt Lake City will use $1 million to give iPod Touches to 1,600

students at Kearns High School.

FISCAL PROMISES

GOV. GARY HERBERT (R)

“As a state, we will continue to make government more responsive,












http://www.ksl.com/?nid=148&sid=11453718

http://www.utah.gov/governor/docs/Inaugural-2010-FINAL-speech.pdf

more efficient and more taxpayer friendly … as a state, we will do

all that we can to support and keep our focus on the private sec-

tor to promote economic expansion and job creation. And let me

underscore: America’s traditional system of free enterprise is the

only means to long-term job security and economic prosperity …

Utah has demonstrated the innovation, the fiscal restraint and the

problem-solving skills that can play an important role in providing

solutions to the problems that confront America. And, as we lead

by example, we will continue to exercise fiscal responsibility and

budget discipline.”

VERMONTBUDGET:






budget


73% funded

ECONOMY:

















Mt. Snow received $25 million to replace chairlifts, construct a

120-million-gallon storage pond for snowmaking, and install ad-

ditional snowmaking guns.

F ISCAL PROMISES

GOV. PETER SHUMLIN (D)

“I stand here today to present a budget that is as sobering as it is

necessary, matching state spending with our state revenues, in keep-

ing with the long tradition of frugality and common sense that is the

lifeblood of Vermonters. My budget puts Vermont on a solid and

sustainable path to fiscal responsibility. Facing our fourth consecu-

tive year of budget shortfalls, I am committed to making the painful

choices today that will help ensure that we are not back here next

year making drastic cuts.”

V IRGINIA

BUDGET:











http://washingtonexaminer.com/blogs/examiner-opinion-zone/stimulus-bill-has-federal-government-stimulated-waste

http://governor.vermont.gov/newsroom-budget-address

Projected FY 2012 Budget Deficit: $2 billion7, or 13.1 percent of the budget


80% funded

ECONOMY:








$98,000 was allotted to develop a walking tour of the town of Boy-

dton, which is less than one square mile.

F ISCAL PROMISES

GOV. BOB MCDONNELL (R)

“We will also continue our efforts to fundamentally reform and

restructure Virginia’s state government. Over the past three years

we have cut billions from our state budget. Our budget had nearly

doubled in a decade, growing 28% faster than the growth in

population and inflation. When we make government smaller and

smarter, we make our economy stronger. Just like families and busi-

nesses regularly do, we must look at what doesn’t work well and

what wastes money, and fix it.”








http://www.time.com/time/specials/packages/article/0,28804,1855948_1863903_1863884,00.html


WASHINGTONBUDGET:






budget


99% funded

ECONOMY:








The Puget Sound Regional Council spent $260,000 building a

pedestrian bridge across the North Creek, just 20 paces from an

existing sidewalk that crosses the river.

$10,000 was used to purchase “fish art” for the beautification of

Canal Drive’s median.












http://seattletimes.nwsource.com/html/localnews/2013154528_stimbridge14m.html

http://www.tri-cityherald.com/2009/08/15/v-print/681931/sculptures-to-swim-up-canal-drive.html

FISCAL PROMISES GOV.

CHRISTINE GREGOIRE (D)

“We need to use this economic crisis to get control of spending in

two critical areas — pensions and health care costs. In the past

decade our health care costs doubled to more than $5 billion. In the

next biennium alone our pension costs will double. Every dollar we

spend on health care and pensions means we have one fewer dollar

to educate our children.”

WEST VIRGINIA

BUDGET:







56% funded

ECONOMY:



















The Army Corps of Engineers will spend $650,000 to have an

Ohio-based company, Air Maids LLC, clean bathrooms, offices, and

campgrounds at Burnsville Dam.

F ISCAL PROMISES

GOV. EARL RAY TOMBLIN (D)

“In all of my years in the Senate, I am most proud of the fact that we

always kept a watchful and cautious eye over the State’s finances. In

acting as Governor, I pledge to continue to do so.”

WISCONSINBUDGET:






budget


100% funded

ECONOMY:










http://stimuluswatch.org/2.0/awards/view/61327/grounds-and-%20restroom-cleaning-at-bulltown-campground.-grounds-restroom-and-office-cleaning-at-burnsville








The village of Twin Lakes received $899,853 to implement a

“streetscaping” project.

A nursing home in Chetek received $2.8 million for renovations.

The nursing home was already on track to receive funding from the

USDA.

FISCAL PROMISES

GOV. SCOTT WALKER (R)

“Creating a more vibrant economy; however, will not happen with-

out a return to frugality in government – returning to our fundamen-

tal constitutional principles. Soon, we will lay out our plans for the

next state budget and we will successfully tackle the three billion

dollar deficit. We will do it without raids on segregated funds, or

excessive borrowing. Let me be clear on one thing: Increasing taxes

is off the table—as it will counter our efforts to provide economic

growth. Instead, we will make tough, but compassionate decisions

to balance the next state budget in a way that will get Wisconsin

working again.”





http://www.milwaukeenewsbuzz.com/?p=194581

http://www.jsonline.com/news/wisconsin/46555547.html

http://www.nbc15.com/news/headlines/Wisconsin_Is_Open_For_Business_-_Transcript_of_Walkers_Inaugural_Address_112814799.html

WYOMINGBUDGET:






Pension Liability and % of Liability Funded (FY 2009): $7,401,614, 89%

funded

ECONOMY:








$140 million was awarded to Wyoming for road and bridge proj-

ects. Half of the money was awarded to out-of-state contractors, who

underbid local companies.












http://billingsgazette.com/news/state-and-regional/wyoming/article_3a03aa92-894e-11de-9f19-001cc4c002e0.html

FISCAL PROMISES

GOV. MATT MEAD (R)

“With our communities still feeling the effects of the economic

downturn, we need to provide an additional source of revenue

to our cities, towns and counties. It is good that we do not face a

repeat of last year’s fiscal austerity — with 10 percent budget cuts

and revenue shortfalls that affected everyone in the chain — from

the state on down. It is good that we have an unexpected amount

of money for a supplemental budget. But, the last few years have

provided a wake-up call. We need responsible growth, growth that’s

right for the times and our needs, growth that does not compromise

our values.”


For more information on the facts that affect your pocketbook, visit us at:

thepublicnotice.org

[published June, 2011]



budget briefing booklet, volume 2

Documents

government programs

nations security

social securityan

largest federal programs

healthcare costs

federal government spending

growing costs

united states government