The Empire State capital building
Yeah, Virginia legislators do a lot of stupid stuff, I can’t deny that. Without question, the commonwealth’s governance model is critically flawed. But, to tweak Winston Churchill’s immortal words about democracy, Virginia’s government is the worst in the world — except most of the others.
The situation is worse in New York — a lot worse. States a recent article entitled, “Deficits Push N.Y. Cities and Counties to Desperation“:
Even as there are glimmers of a national economic recovery, cities and counties increasingly find themselves in the middle of a financial crisis. The problems are spreading as municipalities face a toxic mix of stresses that has been brewing for years, including soaring pension, Medicaid and retiree health care costs. And many have exhausted creative accounting maneuvers and one-time spending cuts or revenue-raisers to bail themselves out.
No, that’s not right-wing spin from FOX News, National Review or the Cato Institute. That comes straight from the New York Times.
A state oversight board seized control of Nassau County’s finances last year, while neighboring Suffolk County has declared a financial emergency. Buffalo is approaching financial failure and Rochester may not be far behind. Moody’s downgraded the debt of Yonkers and Long Beach last year and the debt of Rockland County and Utica last month.
Public pensions are a big part of the problem. Three percent of New York property tax collections were used to pay pension costs in 2001; by 2015, pension costs are expected to eat up 35 percent of property tax collections. You thought Virginia’s General Assembly was reckless? Syracuse Mayor Stephanie A. Miner blamed state government for passing unreasonable costs such as pensions on to municipal governments. “Unless Albany changes its policies,” she said, “we will be dead.”
Remember all those wonderful government services that were supposed to contribute to a higher quality of life, attract human capital and support a stronger, more vigorous economy? They may not last. Said a Rockland County executive: ” “I think you’ll see a dropping off of the programs that many counties now view as important — law enforcement, economic development, parks and recreation. Those kinds of programs will disappear. Counties will become welfare and Medicaid managers.”
Collapse of the Blue State Governance Model: California Update. Michael J. Boskin and John F. Coogan write in the Wall Street Journal: “California’s economy, which used to outperform the rest of the country, now
substantially underperforms. The unemployment rate, at 10.9%, is higher than
every other state except Nevada and Rhode Island. With 12% of America’s
population, California has one third of the nation’s welfare recipients.”
— JAB
