Read It Here First: States' Impact on Economy

Monday, June 02, 2008 | 02:00 PM

Last month, we discussed States and Cities Impact On GDP. They account for about 12.5% of total US GDP.

The Sunday NYT had a related article in the Week in Review: Think the Economy Is Bad? Wait Till the States Cut Back. Here's an excerpt:

"Struggling as we are with the housing bust, the credit crunch, shrinking consumption, rising unemployment and faltering business investment, we can be forgiven for thinking that all the big shoes have dropped. There is another one up there, however, and it is about to come down.

State and city governments have yet to shrink the economy; indeed, they have even managed to prop it up. They have quietly maintained their spending at pre-crisis levels even as they warn of numerous cutbacks forced on them by declining tax revenues. The cutbacks, however, are written into budgets for a fiscal year that begins on July 1, a month away. In the meantime the states and cities, often drawing on rainy-day savings, have carried their share of the load for the national economy.

That share is gigantic. At $1.8 trillion annually in a $14 trillion economy, the states and municipalities spend almost twice as much as the federal government, including the cost of the Iraq war. When librarians, lifeguards, teachers, transit workers, road repair crews and health care workers disappear, or airport and school construction is halted, the economy trembles. None of that, or very little, has happened so far, not even in California, despite a significant decline in tax revenue."

States and Cities Impact On GDP (May 2008)

Think the Economy Is Bad? Wait Till the States Cut Back
NYT, June 1, 2008

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IDOT: Less roadkill to be picked up along highways
Associated Press
3:34 PM CDT, May 30, 2008

The view along Illinois highways for at least part of this summer should be beautiful -- for the turkey vultures.

The state's transportation department says it won't pick up as much roadkill left along roads because it spent more than twice the allotted $40 million over the winter on clearing ice and snow removal.

Dead animals in driving lanes and any deemed hazardous to motorists will be removed. But much of the rest will be left for scavengers.

The Jackson County Health Department says the roadkill shouldn't lead to any health risks.

IDOT spokesman Mike Claffey says the department has asked for $20 million in additional funding in a supplemental appropriations measure being considered by state lawmakers.

The new budget year starts July 1st.
Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Posted by: mike | Jun 2, 2008 2:13:39 PM

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