The GAO calculated the astonishingly large amount of local governments (87,525) and all fifty states to come up with the numbers for total taxes and fees and
grants and loans “from the federal government.” “The 50 state governments and 87,525 U.S. local governments collected a total of about $1.4 trillion in taxes and fees in 2006 and about $400 billion in grants, loans and loan guarantees from the federal government, GAO officials report.”
The none too palatable conclusion of the GAO report pointed to a need of “a 15.2% tax increase or a 12.9% reduction in spending financed by non-grant revenues.” Seems to me that many if not the majority of local and state governments need to learn the concept of not living beyond their means and properly planning for the future needs of their workers and retirees.
Who thinks they can do a better job of managing their local governments finances that they have done in the past?
These types of retiree benefits, such as comprehensive health insurance and the like, have been what leads to the downfall of many companies in the past... the fed should be no different. When the costs of health care climb at this alarming rate, it's virtually impossible for the funds set aside to keep up, especially as the covered population (retirees) age!
Jerry
www.leads4insurance.com
Posted by: Jerry | January 24, 2008 8:40 PM | Permalink to Comment