Deficits projected for next six years (WV)

[UpInArms]

http://www.wvgazette.com/section/News/2004021625/?pt=10

Lawmakers are struggling this session to cut state spending by more than $120 million, but those numbers will look like small change compared to state budget deficits expected over the next six years, according to projections released Monday.

A study prepared by the Legislative Auditor’s Office shows that, once lawmakers figure out how to fill a $111.3 million hole in the 2004-05 budget, they will come back next year needing to plug a $174.3 million hole in the 2005-06 budget.

That $174 million gap will seem like small potatoes for future Legislatures, with the funding deficit projected to grow to $259.1 million in fiscal 2006-07, $295.4 million in 2007-08, $318.5 million in 2008-09, and $373.1 million in 2009-10.

<snip>

“The numbers, we felt, were going to be difficult to live with,” Senate Finance Chairman Walt Helmick, D-Pocahontas, said afterward. “We didn’t realize it would really be as bad as it is.”

...more...

the trickle down effects of the * fiscal policies in action

[Nicholas D Wolfwood]

1. It's trickling alright...

Trickling down to India and other third world countries. Oh, wait, outsourcing, also known as taking American jobs and sending them overseas, is just a new way of doing international trade. :puke: :puke: :puke:

[JeebusH]

2. that Bush vote didn't quite work out as expected ...

[ProfessorGAC]

3. 6 Years! I Don't Think So

At the rate of reduction posited by the White House, it will take 6 years (2010). However, remember that these are the geniuses whose predictions of deficits have been increasingly deficient for the last 3 years. Their deficit predictions have been 60, 62, and 81% low in the last three years. So, i'm not that confident in their analyses.

Even if the economy accidentally rebounds despite Bush's disasterous moves, it won't be by the amounts assumed in the budget projections for the last go around. Based upon a reasonable rebound of 3.75% real GDP growth and inflation of 2.5%, the yield to the gov't would reduce the deficit by about 6% per year. So, it will take at least 12 years to cut it completely.

If the economy takes another 2 years to become truly robust and sustainble, it will take closer to 18 years.

6 Years is a dream, and a dream only.
The Professor