Wednesday, July 5, 2017

The
New
Paradigm
Austerity 
The states without a budget on July 1 are Connecticut, Delaware, Illinois, Maine, Massachusetts, New Jersey, Oregon, Rhode Island, and Wisconsin, while in Pennsylvania and Michigan the budget has passed the Legislature and is on the governor's desk.
DYI:  These are not minor political fights between the two opposing political parties what has happened gargantuan over promises have been made to State employees regarding pay and benefits far greater than the private sector.  The chickens have come to roost as Boomers begin retirement the money is simply not there – major unfunded liabilities.  The real underlining reason for the budget fights no one wants the hot potato.  There is no way around this, no magic wand; all areas of State government will have to take a substantial haircut.  This will include reduced pension and health care benefits for those retiring.  Remember retirees vote in very high percentages hence no politician has a desire for the hot potato.  In the end austerity will win out as these States plus many more simply have no choice.  
DYI 

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