"A government big enough to give you everything you want, is big enough to take away everything you have"
Thomas Jefferson

Thursday, October 9, 2008

Your Fiscal Homework

New York State Comptroller Thomas DiNapoli has released State of New York Financial Condition Report.

Click here to read it

Personal Income Tax and Consumer Taxes and Fees account for 43.7% of the state's total income, hence why the situation on Wall St. is so important to all New York residents. According to the report PIT and Consumer taxes and fees have increased 38% since 2004. PIT is the largest source of income for New York State.

State spending is outpacing inflation for the year ending March 2008 the state outspent the rate of inflation by nearly $6 billion dollars, spending at the rate of inflation (something Dave Renzi advocates for) would have had spending at $110.2 billion instead of the $116.1 the state spent in the fiscal year.

New York State continues to rack up debt in order to provide programs for residents of the state in absence of revenue to support the programs and services.
From the report:
In 2007, New York State was the 2nd most indebted state (behind California), and had nearly twice as much debt as the 3rd most indebted state. In 2007, New York State also ranked 5th among all states in debt per person.
Taxes the report says:
New York has the second highest combined State and local taxes as a percentage of personal income in the nation, with local taxes ranking first and State taxes ranking 24th.


One item to note, unlike other states, New York passes down a major portion of Medicaid to local governments and that is one reason why local taxes are higher than the national average.

According to the report Medicaid, school aid and debt service are expected to account for 47% of spending in state funds, which is why they will have no choice but address these areas in order to put our fiscal house in order.


The sum, New York state is taxing too much, and still spending beyond our means, and in doing so they are borrowing to pay for the excessive spending while putting future generations in debt. 

A reason why any incumbent should be voted out, their primary responsibility is to be prudent and understand fiscal discipline! Do any of them read these reports?

9 comments:

Dan Francis said...

Oh, it's far, far worse than that - my lecture for today (from various sources including my own mind):

Subject: What lies ahead (other than a pack of lies) is this:

Dan's Civic & Economic Class 101

* California was first to ask for $7 billion, which has now grown to $15 billion, in “bailout money” to help them meet payrolls; then Massachusetts followed; then 15 other states; and now the media says there are 31 states facing both major and minor shortfalls, and that it could be as much as $53.4 billion – but probably a lot more.

NOTE: I predicted this a month ago – greed: “Where’s my cut” creeps in and paranoia strikes deep (to coin an old song phrase) once the gravy train pulls out.

Today:

* The Bush administration is considering taking ownership stakes in certain U.S. banks as an option for dealing with a severe global credit crisis. One administration official, who spoke on condition of anonymity because no decision has been made, said the $700 billion rescue package passed by Congress last week allows the Treasury Department to inject fresh capital into financial institutions and get ownership shares in return.

* The official said all the new powers granted in the legislation were being considered as the administration seeks to deal with a serious credit crisis that has caused the biggest upheavals on Wall Street in seven decades and continues to roil global markets. Supporters of this approach include NY Sen. Charles Schumer, who argues that injecting fresh capital into U.S. banks that want to participate in the program would be an effective way to bolster banks' balance sheets and get them to resume lending.

* Schumer and others say that taxpayers would benefit because the government would receive an equity stake in the bank in return for providing the capital.

So, what do we really see happening in our country?

It is plain that we're approaching: De-privatization

Whoa, what’s that, Dan?

* It’s the simple (yet complex) act of transferring ownership in various segments of the total economy from the private sector to the public sector (government).

* De-privatization often occurs when a government attempts to maintain the stability of its critical infrastructure during periods of economic distress (just like right now).

Some also call it: Nationalization.

* As John McCain would “My friends,” it is far worse than that – far worse.

* But, it is NOT socialism that the right likes to hang around the necks of DEMS – is far worse than that.

We as a nation may never be the same again - one huge funnel to DC (send your money) and we'll funnel it out as we see fit.

GREAT DEPRESSION, II?

How aobut: GREAT PROCESSION... [to the USGT = Uncle Sam Gravy Train]?

/s/ Who's in Charge [WINC] - pronounced WINK ... how appropriate is that?

Dan Francis said...

Got my $240.50 STAR rebate check today - already deposited and will not spend it for awhile...

What a gimmick in stressful times?

LOL

Dan Francis said...

Screeching won't help and neither will hand wringing or chest beating - here try this:

Worth asking every GOP in office right now, or those in the GOP who seek office this cycle:

* "Did you know that the stock market paper losses totaled $872 billion on Thursday, October 9, 2008 That the value of shares over all has tumbled a stunning $8.33 trillion since last year's high."

So, tell me why should I vote to keep you, or send you, a Repubican in office to handle our fiscal matters?

This question is fair considering the GOP has the NYS Senate, and White House, and had the Congress from Jan 1995-Jan 2007.

SmallTownAmerica said...

Dan,

Loved the lecture. What I find hilarious is that the current-run of the mill-Republican stump speech fodder is about getting rid of big government.

Palin stumps on laissez-faire every day. She pledged it to the American *wink*wink* citizens during her debate *hair-flip*nod* with *also* Joe *teeth-lick* Biden.

(although, that is not the term she uses, and probably can't even spell it, let alone pronounce it. she'd most likely think we were asking her about gay marriage.)

RWiley said...

Thanks Dan,

I love fiscal Home Work. Here is what I found while I was doing mine.

This is another one from Smoking Gun. It sums up why the poor folks back home have to deal with belt tightening.

"OCTOBER 7--Days after federal officials agreed to an $85 billion bailout of American International Group, the insurance firm spent more than $440,000 for a corporate retreat at a swanky California resort."

AIG Party Invoice

I wonder if John McHugh was invited?

RWiley said...

Dave Renzi just announced that you better cash your rebate check before his opponent takes it away.

Sound familiar? Instill fear, ply on ignorance and encourage spending?

Sounds to me Dave is stuck with the George Bush and John McCain, "When times get tough, Spend" philosophy which got us where we are today as you see your financial future slip away.

We don't need a George Bush supporter playing with our money in Albany.

My advice, don't cash it, deposit it !!!

Dan Francis said...

Here, take this fiscal syrup ... it only smells bad ... but tastes great, trust us. /s/ Government in Charge (GiC)

BOHICA = bend over, here it comes again.

Anonymous said...

In six years in Albany, Darrel Aubertine voted for $35 BILLION in new taxes and supported the biggest tax increase in NYS history.

In January, Aubertine voted TWICE to raise state spending by 2x the inflation rate -- even as the state and national economy was tumbling.

Could there be any connection between irresponsible and wasteful spending and the condition of our economy, lack of jobs, and high taxes?

Anonymous said...

Nope. No connection between high taxes, paying off the teacher's and public employee unions, special interest spending and everything else we love and justify. No connection at all. The reason NYS is such an economic armpit, has driven away so many young people, and has lost so many jobs is because, well, I chaulk it up to gobies in the St Lawrence River. I'm a thinking kinda guy and a real party line voter, and it's them damn gobies.

We are such a stupid group. But then again I'm close to retirement. Who cares? Spend baby spend. JCC, build it. Forget the 4 year deal, go for a 6 year school. Indoor tracks and planitariums in all high schools, 20% annual raises for teachers, and NO wind. And if you land a goby, practice catch and release.

Thanks for putting up with me. My recreational options become more limited as I age.

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