Monday, February 28, 2011

Overview of Obama's Limited Options for Assisting States

link here to article

The huge decline in tax revenues at the state and local levels has put pressure to cut spending on essential programs and it has led to the loss of over 400,000 government jobs. The GOP would rather increase the spending cuts, which could lead to the loss of up to 850,000 more jobs, than it would to provide more federal support to the states. This may slow our recovery and worsen the fiscal picture for the states and for our economy. Perhaps the GOP believes that a weak economy in 2012 works to its advantage. It also enables the GOP to use the fiscal crisis as the means to attack public employee unions.

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