Drudge Retort: The Other Side of the News
Friday, March 30, 2018

The proportion of state and local tax revenues dedicated to Medicaid and public pensions is the highest since the 1960s. As state and local officials prepare their next budgets, many are finding that spending decisions have already been made for them by two must-fund line items that barely mattered when baby harder to quantify, add to that burden and have cumulatively cost states more than $100 billion since 2008, according to government financial disclosures compiled by Merritt Research Services.

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Ahhhh the Boomers.

They're gonna take us right to the cleaners by the time they're done and gone.

#1 | Posted by jpw at 2018-03-29 12:00 PM | Reply

Why are so many states broke?

Simple.

Republican policies which cut taxes on the rich, give tax subsidies to corporations, and cut budgets on education.

#2 | Posted by ClownShack at 2018-03-29 12:09 PM | Reply | Newsworthy 9

"Ahhhh the Boomers.
They're gonna take us right to the cleaners by the time they're done and gone."

Ah....the old "turn it into a generational argument" instead of a class war.

#3 | Posted by danni at 2018-03-29 12:17 PM | Reply

Republican policies which cut taxes on the rich, give tax subsidies to corporations, and cut budgets on education. - #2 | Posted by ClownShack at 2018-03-29 12:09 PM

10 worst states:
1. AZ red
2. CA blue
3. NV blue
4. IL blue
5. NJ blue
6. NY blue
7. RI blue
8. KS red
9. OR blue
10. AK red

You need to reconsider you ill-informed opinion on the causes of the state budget shortfalls. Or are you somehow thinking that federal tax revenue causes some shortage in state budgeting?

#4 | Posted by Avigdore at 2018-03-29 12:35 PM | Reply | Funny: 1 | Newsworthy 4

"Or are you somehow thinking that federal tax revenue causes some shortage in state budgeting?"

You think Federal policy doesn't affect state budgets???

You oppose Medicad expansion for that very reason.

Try making arguments that aren't rooted in being disingenuous, like when you opposed Medicaid expansion because of the burden it placed on state budgets. Thst at least has a nugget of factual truth buried beneath the thick outer coating of tax cuts for the rich and derision for the less fortunate.

#5 | Posted by snoofy at 2018-03-29 12:49 PM | Reply | Newsworthy 5

comment #2 ended this thread. not a very hard concept to understand.

#6 | Posted by BruceBanner at 2018-03-29 12:52 PM | Reply

10 worst states:
1. AZ red
2. CA blue
3. NV blue
4. IL blue
5. NJ blue
6. NY blue
7. RI blue
8. KS red
9. OR blue
10. AK red
You need to reconsider you ill-informed opinion on the causes of the state budget shortfalls. Or are you somehow thinking that federal tax revenue causes some shortage in state budgeting?
#4 | POSTED BY AVIGDORE

Illinois and NJ both have had Republican governors for the last few years. How dumb are you?

In addition, if you paid attention to better rankings, you'd know that Red States have simply cut their budgets to stay "healthy" but there infrastructure, health and education are insanely "unhealthy" compared to most Blue states.

You have to look at better ranking systems.

#7 | Posted by Sycophant at 2018-03-29 01:27 PM | Reply | Newsworthy 2

comment #2 ended this thread. not a very hard concept to understand.

#6 | POSTED BY BRUCEBANNER AT 2018-03-29 12:52 PM | FLAG: Yet the majority of the states listed in this article are Blue states - interesting is it not?

9 Most Bankrupt States In America: Is Yours On The List? www.dailywire.com

Best-Run States Are Low-Tax Republican, Worst-Run Are High-Tax Democratic, Study Finds www.investors.com

#8 | Posted by MSgt at 2018-03-29 01:31 PM | Reply | Funny: 2 | Newsworthy 1

#5 | Posted by snoofy at 2018-03-29 12:49 PM
Do you think that Federal policy and federal tax revenue are synonymous?

#9 | Posted by Avigdore at 2018-03-29 01:34 PM | Reply

Do you think that's not a disingenuous question?

#10 | Posted by snoofy at 2018-03-29 01:39 PM | Reply

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No, as you addressed a question about tax revenue with a statement about Federal policy. Perhaps it is just poor reading comprehension on your part. I wanted to at least give you the chance to clarify your poorly thought out position.

#11 | Posted by Avigdore at 2018-03-29 01:44 PM | Reply | Funny: 1

9 Most Bankrupt States In America: Is Yours On The List? www.dailywire.com
Best-Run States Are Low-Tax Republican, Worst-Run Are High-Tax Democratic, Study Finds www.investors.com

#8 | POSTED BY MSGT

Of course California and New York make the list. But they also have the highest tax income.

Also FOUR of the top FIVE states in your Dailywire article have Republican governors for years now or JUST elected their first Democratic governor in years.

So does Maine.

Only FOUR of those nine states have had Democratic governors for the last few years...

And all of these are based SOLELY on unfunded pensions. New York actually has a budget surplus. And California has a Constitutional restriction on real estate tax.

Better yet, NONE of these reports take into account underfunding of state agencies. Now THAT is a real problem as well.

#12 | Posted by Sycophant at 2018-03-29 01:45 PM | Reply | Newsworthy 2

"And all of these are based SOLELY on unfunded pensions. New York actually has a budget surplus. And California has a Constitutional restriction on real estate tax."

And a surplus.

#13 | Posted by danni at 2018-03-29 01:47 PM | Reply

#5 | Posted by snoofy at 2018-03-29 12:49 PM
Do you think that Federal policy and federal tax revenue are synonymous?

#9 | POSTED BY AVIGDORE

They seem to be inversely proportional. Rural states, red, require a lot more Federal money to stay afloat. Blue states, more urban, pay the extra and that makes it harder to compete on a tax basis.

Federal spending is the second highest source of revenue for the states.

#14 | Posted by Sycophant at 2018-03-29 01:49 PM | Reply | Newsworthy 1

#12 | POSTED BY SYCOPHANT AT 2018-03-29 01:45 PM | FLAG: This should be a non problem for blue states as they have had the answer for decades -- just raise the taxes higher till the budget is balanced as that will solve the budget crisis ;)

#15 | Posted by MSgt at 2018-03-29 02:23 PM | Reply

Stoopid question.......... Politicians love to spend other peoples money.

#16 | Posted by Sniper at 2018-03-29 02:43 PM | Reply

10 worst states:
1. AZ red
2. CA blue
3. NV blue
4. IL blue
5. NJ blue
6. NY blue
7. RI blue
8. KS red
9. OR blue
10. AK red
You need to reconsider you ill-informed opinion on the causes of the state budget shortfalls. Or are you somehow thinking that federal tax revenue causes some shortage in state budgeting?
#4 | POSTED BY AVIGDORE

Ten worst states to do what?

What's this out of context list you've posted? Is it from the subscription based article you posted? The article attempting to smear Medicare so republicans can cut funding for it?

You should reconsider posting here. You're part of the reason Americans are getting shafted.

#17 | Posted by ClownShack at 2018-03-29 03:09 PM | Reply | Newsworthy 5

"Yet the majority of the states listed in this article are Blue states - interesting is it not?"

The article is pay-wall. Who knows what the heck they're calculating.

#18 | Posted by BruceBanner at 2018-03-29 03:52 PM | Reply

These entitlement programs have been, for the most part, created by the Dems and their Union masters. Now its time to pay the piper, and the finger pointing is going to start in earnest.

Top Democrats wriggling about on the issue of pensions

The cost of California's public pensions is rising fast. But efforts to fix the problem by ballot measure have fizzled

The pension gap: Democrats and Unions promised that it wouldn't cost taxpayers an extra dime. Now the state's annual tab is in the billions, and the cost keeps climbing.

What is the Democratic Party's Solution to the Pension Crisis?

Hate to say we told ya so...

#19 | Posted by Rightocenter at 2018-03-29 04:02 PM | Reply

"These entitlement programs have been, for the most part, created by the Dems and their Union masters. Now its time to pay the piper, and the finger pointing is going to start in earnest."

Predictable talking point after all tax cuts.

#20 | Posted by danni at 2018-03-29 04:09 PM | Reply | Newsworthy 1

#3 they're not mutually exclusive.

www.financialsamurai.com

Sorry, but everything the boomers get their greedy hands on goes to ---- because for boomers it's all about taking as much as you can whenever you can.

#21 | Posted by jpw at 2018-03-29 04:21 PM | Reply

Illinois and NJ both have had Republican governors for the last few years. How dumb are you?

----

So are you suggesting that Illinois had no financial issues prior to Rauner?

#22 | Posted by Pirate at 2018-03-29 04:43 PM | Reply

"And all of these are based SOLELY on unfunded pensions. New York actually has a budget surplus. And California has a Constitutional restriction on real estate tax."

And a surplus.

#13 | Posted by danni

Rightttttttttttt.

#23 | Posted by Sniper at 2018-03-29 05:15 PM | Reply | Funny: 2

Predictable talking point after all tax cuts.

#20 | POSTED BY DANNI AT 2018-03-29 04:09 PM

Predictable deflection since tax cuts have nothing to do with causation of pension crisis.

#24 | Posted by Rightocenter at 2018-03-29 05:47 PM | Reply

It would kill sniper to leave his mom's trailer park and see how rich Silicon valley is.

#25 | Posted by Tor at 2018-03-29 10:00 PM | Reply

#25

And that has exactly what to do with the pension crisis?

#26 | Posted by Rightocenter at 2018-03-29 11:51 PM | Reply

"Predictable deflection since tax cuts have nothing to do with causation of pension crisis."

Absolute nonsense. Many states begin their returns with "What is your Federal AGI", meaning cuts above-the-line of AGI result in de facto state tax cuts, which can directly affect a state's balance sheet, and therefore its ability to pay promised pensions.

#27 | Posted by Danforth at 2018-03-30 12:30 AM | Reply

Danny, they have to promise the pensions in the first place, which is what causation means.

Try again.

#28 | Posted by Rightocenter at 2018-03-30 12:36 AM | Reply

Republican policies which cut taxes on the rich, give tax subsidies to corporations, and cut budgets on education.
#2 | Posted by ClownShack

If Rs gave their rich owners tax cuts and cut spending to match their states would be dumps but at least they wouldn't be broke. But like the Feds they cut taxes but spend like a pimp with a week to live. But states can't indulge in deficit spending quite as easily as the Feds so they get in a bind quicker. It's simple arithmetic which is why pols hate public education.

#29 | Posted by SomebodyElse at 2018-03-30 12:22 PM | Reply

"And all of these are based SOLELY on unfunded pensions. New York actually has a budget surplus. And California has a Constitutional restriction on real estate tax."
And a surplus.
#13 | Posted by danni
Rightttttttttttt.
#23 | POSTED BY SNIPER

You can actually look this stuff up with Google. How much of a waste of space are you?

#30 | Posted by Sycophant at 2018-03-30 12:43 PM | Reply

You can actually look this stuff up with Google. How much of a waste of space are you?

Posted by Sycophant at 2018-03-30 12:43 PM | Reply

It's sad that you even ask that. It's Sniper for Pete sake.

#31 | Posted by LauraMohr at 2018-03-30 12:51 PM | Reply | Newsworthy 1

I read this somewhere: We have a lot more government than we need and get less than we pay for.

#32 | Posted by visitor_ at 2018-03-30 04:05 PM | Reply

Why are so many states so broke?

Because these same states struggling with their budgets never fully recovered from the 2008 Wall Street Crash.

The state pensions affected by the Great Recession were hybrid/government pensions that melted away the second Wall Street melted down ... yet these same states are still obligated by state law to pay state workers their pensions.

And state money instantaneously became scarce due to the giant hole the '08 crash left in these state budgets.

To say state workers like teachers, firefighters, and law enforcement are greedy by demanding their pensions is pretty stupid ... though it's not hard to understand how stupid people would think that.

#33 | Posted by PinchALoaf at 2018-03-30 05:28 PM | Reply | Newsworthy 3

I read this somewhere: We have a lot more government than we need and get less than we pay for.

#32 | POSTED BY VISITOR

Wrong.

See above.

#34 | Posted by PinchALoaf at 2018-03-30 05:29 PM | Reply

"Danny, they have to promise the pensions in the first place"

And if they put away money on a timely basis, they're fine. The problem isn't the promise.

#35 | Posted by Danforth at 2018-03-30 08:23 PM | Reply

"Danny, they have to promise the pensions in the first place, which is what causation means."

Using your logic, no pension could ever pay out. The cause was what those Entrusted did AFTER the promise was made.

#36 | Posted by Danforth at 2018-03-30 08:26 PM | Reply

"tax cuts have nothing to do with causation of pension crisis."

If you actually believe that, you don't understand the equation.

#37 | Posted by Danforth at 2018-03-30 08:27 PM | Reply | Newsworthy 1

Why are so many states broke?

Simple.

Republican policies which cut taxes on the rich, give tax subsidies to corporations, and cut budgets on education.

#2 | POSTED BY CLOWNSHACK| NEWSWORTHY 7

Well said

#38 | Posted by PinchALoaf at 2018-03-31 08:05 AM | Reply | Newsworthy 2

Hate to say we told ya so...
#19 | POSTED BY RIGHTOCENTER AT 2018-03-29 04:02 PM | REPLY | FLAG:FOS

Here's a little truth... people have been saying that about California since "manifest destiny" with an invasion started based on lies.... a lot like Iraq was... only then it was the Catholics who were considered the radical religious extremists.... made it part of the US. The state is literally crawling with republicl*wns but still, it is always something Ithat irrates the clown brigade.

So seriously dude so seriously dood... go **** ********* based on the fact you are clueless.

When CA goes so goes the rest of the country... and when it goes it will be a clown of your ilk to put it there.

#39 | Posted by RightisTrite at 2018-03-31 10:03 AM | Reply | Newsworthy 1

I have an idea. Why don't we balance the federal spending? Not only that let's put in an amendment that says a state can get no more than they put in and lets take it a step further and make it proportional. We all know a lot of money is spent internationally so that needs to be divided up proportionally as well. And end this huge drain that is subsidizing of flood insurance - when a home is in a flood zone and flooded write off the homes period and don't allow reconstruction. Why are we paying for these homes to be redone 3, 4, 5, etc. times?

While we are at it, let's also redistribute some of the main military bases as well - those are huge sources of state income. Look at my State of Michigan, all of our main military bases were shut down and we never truly had large bases. We have a couple Reserve training bases and a couple Cost Guard stations but similarly sized southern states have them in droves.

That way we can see if states that rely on the Federal dollars donated by other states are really well managed. I would add that you must consider the infrastructure of the blue states on the list from Avigdore. States like NY, CA, RI, IL, NJ have far more infrastructure than most states to maintain and they are all key to the heart of our productivity and GDP. Infrastructure, production and population all go hand in hand. They also do more and have to do more to take care of their citizens than most states - for example you can't just rent a trailer in NYC or any other major metropolis.

Where is the real problem? Two areas - first neither party was putting away money for this time - Federal or state level. That was a mistake. Combine it with the second mistake of declining Federal funds and you have this mess. If we look back to when all these promises for pensions and social security were made tax rates were much much higher. They have been falling on a federal level for 50 years. With one exception I am aware of federal tax cuts have never paid for themselves - trickle down doesn't work. That leaves a tremendous hole for taking care of things like infrastructure as well as addressing promises made 50 and 60 years ago. Most of these people getting state or city pensions could have made more working in industry. Instead they opted to be taken care of in retirement. At least that's what I see here in Michigan.

Bottom line is we are returning to Robber Baron times. Those were not good times for average people. Let's return to 80's tax levels and properly fund the nation.

#40 | Posted by GalaxiePete at 2018-03-31 11:09 AM | Reply | Newsworthy 1

#38 | POSTED BY PINCHALOAF AT 2018-03-31 08:05 AM | FLAG: Yessiree! Than explains so many blue states in debt ;)

#41 | Posted by MSgt at 2018-03-31 12:38 PM | Reply

Those blue states also have the highest GDPs and highest amounts of Federal taxes paid. The country wouldn't last very long without them. Who would pay for all those southern military bases?

#42 | Posted by WhoDaMan at 2018-03-31 04:36 PM | Reply

#40 | POSTED BY GALAXIEPETE

IOW, politicians suck. Especially when the voters can't be bothered keeping up with what they are doing. Granted, that's not easy, but "eternal vigilance is the price of liberty".

#43 | Posted by WhoDaMan at 2018-03-31 04:40 PM | Reply

pensions and 401(k)s have the same problems. They only work if the money gets put in up front and is allowed to grow over time. Promises were made but then initial payments to the fund were not made and often the funds that were there were raided and used for other things. A good example of what a pension fund can do when properly administered is the Wisconsin Public employees fund. It is protected by the state constitution although Walker nad his cronies have been trying to break those protections. Currently the Wisconsin fund has enough cash value to cover every state employee for the next 76 years if it never has a cent added or gained.

#44 | Posted by hatter5183 at 2018-04-01 01:45 AM | Reply

This is a natural consequence of offshoring manufacturing. Fewer high paying jobs means less tax revenue at every level of Government. At the same time demand for public services like education, soup kitchens and health care increases. Meanwhile, congestion and pollution continue to grow around expensive inadequate freeway systems. Planning is driven solely by developers greed. Sidewalks are out of fashion, pitting pedestrians and bicyclists against cars.

#45 | Posted by bayviking at 2018-04-01 07:10 AM | Reply | Newsworthy 1

Too many give-aways to able bodied people on welfare.

#46 | Posted by phesterOBoyle at 2018-04-01 09:25 AM | Reply

Sorry, but everything the boomers get their greedy hands on goes to ---- because for boomers it's all about taking as much as you can whenever you can.

#21 | POSTED BY JPW AT 2018-03-29 04:21 PM | REPLY | FLAG:PPPPPFFFFTTTTT!!!!

I bet you wrote this on a very small computer dreamt up by a boomer ... or maybe its just a silly butt dial from the phone some boomer put in your back pocket. Either way, eat dirt you whiney little brat.

#47 | Posted by RightisTrite at 2018-04-01 10:42 AM | Reply | Funny: 1

#42 | POSTED BY WHODAMAN AT 2018-03-31 04:36 PM | FLAG: That still does not address the blue states' debt problem, does it?

#48 | Posted by MSgt at 2018-04-01 11:07 AM | Reply

#46, statement requires documentation.

#49 | Posted by bayviking at 2018-04-01 11:51 AM | Reply

Too many give-aways to able bodied people on welfare.

#46 | POSTED BY PHESTEROBOYLE AT 2018-04-01 09:25 AM |

He's right but he doesn't understand that the able bodied people on welfare he is referring to are the investor class and CEOs. Wisconsin republicans gave $4.7 Billion to FoxConn to create 3,000 jobs but whine about spreading $3.2 Billion among 1,046,000 medicaid recipients

#50 | Posted by hatter5183 at 2018-04-01 12:08 PM | Reply

#47 lol 🖕🏻 So what

#51 | Posted by jpw at 2018-04-01 12:20 PM | Reply

#47 lol 🖕🏻 So what

#51 | POSTED BY JPW AT 2018-04-01 12:20 PM | REPLY |

So for state tax dollars $3 Billion for 1 million WISCONSIN citizens is a better deal than $4.7Billion for 3,000 citizens mostly from other states and some from other countries

#52 | Posted by hatter5183 at 2018-04-01 05:34 PM | Reply

JPW is an opinionated know nothing.

#53 | Posted by bayviking at 2018-04-01 08:18 PM | Reply

Lol I guess since I vaguely recognize you as a somewhat regular poster your posts must be rather unremarkable.

#54 | Posted by jpw at 2018-04-01 09:28 PM | Reply

Article headlines said, "There are 2 Big Reasons".

I figured they would be excessive entitlement programs and reducing taxes on the rich.

But no...

They said Medicaid and pensions.

I like my answer better.

#55 | Posted by BillJohnson at 2018-04-01 10:36 PM | Reply

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