“The ability of the states to meet their obligations to public employees, to creditors and most critically to the education and well-being of their citizens is threatened,” warns the study group headed by Paul Volker (yes, that Paul Volker, the former Federal Reserve Board chairman) and Richard Ravitch, a former lieutenant governor of New York and a Democrat. Neither gentleman, it should be pointed out, is affiliated with a right-wing, Kohl Brothers-funded think tank.
Taking a deep dive into the budgets and balance sheets of six major states, the task force found six major fiscal threats that apply to all six, including our beloved AAA-rated Commonwealth of Virginia.
- Medicaid spending is crowding out other needs
- Federal deficit reduction threatens state economies and budgets
- Underfunded retirement promises create risks for future budgets
- Narrow, eroding tax bases and volatile tax revenues undermine state finances
- Local government fiscal stress poses challenges for states
- Budget laws and practices hinder fiscal stability and mask imbalances
This document is so important for understanding Virginia’s long-term budget challenges, I will detail key findings in future posts.
— JAB
Special thanks to DUI attorney Vanessa Hicks for supporting Bacon’s Rebellion.