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    Budget Crisis Has State and Local Govts. Cutting to the Bone

    Desperate times call for desperate measures and these are clearly desperate times for a lot of local governments.

    In Highland Park, Michigan, near Detroit, the town is removing 1000 of its 1500 streetlights in a draconian attempt to save money as it scrambles to pay off $4 million in unpaid electric bills.

    With $58 million in debt, unemployment at 22% and 42% of its roughly 12,000 residents living below the poverty line, Highland Park is clearly an extreme example of a municipality under stress. But towns from Santa Rosa, Calif. to North Andover, Mass. are similarly turning down or turning off the lights in an effort to save money, USA Today reports.

    All across America, strapped municipalities are cutting back on what were once viewed as essentially public services.

    For example, Denver has cut $500,000 from its trash-collection budget, Camden, NJ cut about 50% of its police force while Los Angeles, Pasadena and other California communities have been closing public libraries.

    Meanwhile, 55% of the nation's county and city health departments reduced or eliminated at least one program between July 2010 and June 2011, The WSJ reports, citing a new survey by the National Association of County and City Health Officials.

    As Henry and I discuss in the accompanying video, these cutbacks are occurring before America adopts the kind of European-style austerity measures many Republicans are clamoring for. Clearly, the public sector grew too large and too fat in recent decades, but many communities are now starting to cut into the bone of government services, and it's unclear if that's what most Americans really want.

    Aaron Task is the host of The Daily Ticker. You can follow him on Twitter at @atask or email him at altask@yahoo.com

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    87 comments

    • We The People  •  6 months ago
      I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them. - Thomas Jefferson.
      • Hotpickle 6 months ago
        Love it.
      • Michael 6 months ago
        Where is Thomas J now that we REALLY need him?
      • We The People 6 months ago
        Yes michael, we need him badly. Just remember, anyone but Obama. Let's not let the democrats take away our fought for freedoms.
    • Whatever  •  6 months ago
      Just the beginning, it will get much worse
      • yahoo user 6 months ago
        Cutting more fat from government will be worse for government employees, but better for the private sector. I say cut another 90%.
    • A Yahoo! User  •  6 months ago
      At the Ferderal level, I hope the Super Committee fails so that automatic cuts can go across the board, including the defense budget. We will then see what "fat' there is in that government budget.
      • lorenzo 6 months ago
        They will definately fail or rewrite the rules like usual or postpone the cuts out 20 years. They have a large bag of overused tricks to pull from.
      • U4F 6 months ago
        Years ahead instead of 10% NOW kills me.
      • Michael 6 months ago
        @U4F
        It will kill ALL of us.
    • blame yourself  •  6 months ago
      removing the lightpoles cost more than keeping them- who is getting paid to remove them union government workers?

      cut the wages and the benefits of the public sector. not the services. If they dont like it- hire someone that will do it for less.

      You are not entitled to a job, government or not.
      • SarahP 6 months ago
        What is a government worker? I've heard of government employees tho.
      • Michael 6 months ago
        What #$%$ decided to remove the light poles--at great expense--instead of just turning them off?
    • Vince  •  6 months ago
      Stop the earmarks end the perks for themselves and staff members and go after waste & fraud which no one ever takes on.
    • Toadaly  •  6 months ago
      The vast majority of law enforcement goes toward fighting crimes invented by the state itself. In particular, the drug war accounts for over half of law enforcement. If we legalized recreational drugs, we could cut law enforcement budgets by more 50% without cutting enforcment of laws people are truly concerned about, things like robbery, rape, and murder. Not only that, but secondary violence related to drug turf wars would also go away. The drug related anarchy we are seeing in Mexicon would be solved. The number one funding mechanism for terrorism would go away. ...and we would have a new source of "sin tax" revenue on top of all that. Sadly, Americans have been brainwashed into equating the existence of a law with the solution of a problem, and so real solutions like ending the drug war, can never materialize.
    • Robert  •  6 months ago
      Well watch what happens in Ohio over the next five years because of the vote yesterday
      • michaels 6 months ago
        You folks are now on the hook for 66 Billion of Unfunded Pension Liabilities.
        Your taxes are going to sky rocket!. Wonder if the idiots who voted with the Unions understand that!
      • U4F 6 months ago
        No new taxes is Ohios theme, going to be rough but hopefully they balance the budget.
      • jlrlee 6 months ago
        Ohio's population is stagnant, which means it's getting older, resulting in fewer private sector workers paying into the system. Ohio created a net 10,000 jobs over the last decade. Younger people are leaving the state to find a job. Higher taxes on private industry will cause those business to move to another state. Tax revenue will decline over time. Kasich's solution, which would have saved public sector jobs, will occur naturally via job reductions in the public sector. It's a never ending natural cycle.
    • Vince  •  6 months ago
      Budget Crisis Has State and Local Govts. Cutting to the Bone

      Which many of us know is a lie. When they give up all their PERKS that's cutting to the bone.
    • Toadaly  •  6 months ago
      Washington, you're next.
    • Common Sense  •  6 months ago
      My guess is that many local govts are cutting the bone and not the fat (i.e. their inflated salaries, pensions, & perks like cellphones). Same thing applies to the federal govt.
    • Bob  •  6 months ago
      Philadelphia - population drops by 40%, city council members remain the same; housing prices drop by 30%, real estate taxes rise 13.8%; unemployment jumps, city employees get double pay for their last four years; we have not seen cutting to the bone in Philadelphia yet. Cut the DROP program and pay employees a fair salary, but not double for the last four years.
    • NA  •  6 months ago
      No, it's not what we want. Local governments are cutting where they can instead of cutting what counts. For example entitlements. It's time that public workers pay into their pensions and healthcare plans. We can't sustain lifetime pensions and heathcare. Ilegal immigration. It's very expensive to states. Social security is a viable system, but not in it's current form. You see, these are the tough things that most people want addressed, but there not doing it because it's too difficult. Shutting off traffic lights is much easier...
    • Joe  •  6 months ago
      God, you can just see the pain in the faces of Aaron and Henry when they talk about
      cutting government. I love it!
    • Patriot Alice  •  6 months ago
      There is so much waste in all sectors/levels of government....Just take some time and take a good look at your local departments, you won't believe your eyes...Get involved locally....
    • Howard  •  6 months ago
      In my small community in NW Indiana...the home values keep declining - BUT - we just received our new real estate assessment for the year...guess what - our home values went up!!!
      Yep, you guessed it... the values went up just enough to raise our taxes but not enough to file a complaint and if you have your home appraised independently to have the value lowered - the cost of the appraisal is more than you would save on taxes!!! What a crappy way to treat the citizens...
    • Irina  •  6 months ago
      Deport illegal aliens and their anchor babies. Americans need their jobs
    • EnoughIsEnough  •  6 months ago
      There is no "Budget" problem.
      There is a spending problem.
      Government spends like drunken sailors to appease all.
      American households follow by example.

      The tendency is to spend now and rack up debt. It's okay because we'll have more money tomorrow.
      This is unrealistic and we have to hit the reset button.
    • DoneBelieving  •  6 months ago
      Industrial Psy 101. Businesses must have profit to grow and for employees to advance therefore employees are motivated to save money, increase productivity and innovate. Government employees grow their departments to secure their jobs therefore they are motivated to spend more money, and expand programs. They will also create a "need" where none exists.

      Businesses are motivated by lean efficiency. Governments are motivated by waste and bloat. If govt agencies actually fixed the problem they were created to fix. They would be out of a job and a govt. pension. The motivation is to not fix the problem.
    • StevenD  •  6 months ago
      You ain't seen nothin yet.....
    • Steven  •  6 months ago
      private sector has been chopped, now when the public sector faces cuts it's a catastrophicy. Were they removing the lights in foreclosed neighborhoods?

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