“Congress won’t erase state deficits” is the news from stateline.org. Egads, the Michigan Legislature might have to make some unpopular decisions to close a $1.4 billion budget gap.
“‘It was never anyone’s intent [for the stimulus package] to entirely fill state budget gaps,’ said Nick Johnson, who directs CBPP’s State Fiscal Project. ‘The assumption has always been that states would take some degree of action themselves. It’s only appropriate.’ The CBPP estimates the House plan would help states close between $150 billion to $155 billion in shortfalls or less than half of the states’ $350 billion projected deficits.”
Clearly, Mr. Johnson hasn’t dealt with the Michigan Legislature, which always is looking for one-time funding gimmicks to avoid any actual decisions on the state’s spending and taxing policies.
