State Senator Mary Lazich (R-New Berlin) represents parts of four counties: Milwaukee, Waukesha, Racine, and Walworth. Her Senate District 28 includes New Berlin, Franklin, Greendale, Hales Corners, Muskego, Waterford, Big Bend, the town of Vernon and parts of Greenfield, East Troy, and Mukwonago. Senator Lazich has been in the Legislature for more than a decade. She considers herself a tireless crusader for lower taxes, reduced spending and smaller government.
My blog of January 27, 2009, “Congress does not have the magic wand to help the states,” reported several forecasts that the huge federal stimulus package would not solve the budget crises afflicting all 50 states. We now have hard, cold evidence, at least from one state, that those predictions are true.
New York is the first state to approve a state budget that uses federal economic stimulus money, and look at what has happened. New York accepted its entire stimulus allotment, approximately $7.2 billion. Despite the newfound pot of money, New York raised taxes and layoffs are planned by the state and at schools, local governments, and hospitals.
New York’s budget deficit during January 2009 was $13.7 billion. Stateline reports, “New York’s latest official forecast is for an out-year deficit of $11 billion.”
If New York is any indication, the stimulus package only makes fiscal matters worse for the states.
Read more in Stateline.