Other States, Same Problems
Thu, 12 Mar 2009 13:35:00
By Julie Sobel
From taxing pornographic internet downloads and iPods to non-diet soda, almost no stone was left unturned by Gov. David Paterson as he looked to raise revenues to fill the state’s rapidly emptying coffers. But while New York’s dire fiscal straits—the once $5 billion budget gap grew to $13, then $14 billion—have prompted Paterson to propose a series of new fines and fees, New York is far from the only state looking for unusual ways of addressing a gaping budget gap.
Golden State legislators in February rejected Gov. Arnold Schwarzenegger’s (R) proposed tax on golf-related activities aimed at reducing their staggering budget deficit of over $41 billion over the next 18 months. The proposed tax had targeted greens fees, practice balls, cart rentals, lessons and private-club membership fees and dues.
Gov. Deval Patrick (D) has proposed a gas tax and Treasurer Timothy Cahill (D) has a proposal to license three slot machine parlors around Massachusetts as a means to raise cash quickly (Cahill estimated that selling the slot parlor licenses could raise up to $3.3 billion right away). Patrick expressed skepticism about the slot machine plan, arguing that gambling resorts, though not an immediate solution, would create more jobs and economic development than slot parlors.
Gov. Ed Rendell (D) is contending with a budget gap of $2.3 billion. He has proposed increasing cigarette taxes by 10 cents per pack and is pitching a plan for state control and legalization of video poker machines in bars. Rendell says that the revenue gained from state control of video poker and increased tax credits would go to helping prospective students pay for community colleges and state universities. According to Rendell, he cut $1 billion from the proposed state budget and needs the video poker money to fund the program.
Gov. Beverly Perdue (D) ordered $87.6 million transferred from the state’s lottery reserve fund to a general fund, rendering them available for any spending purpose. Profits from the North Carolina Educational Lottery were intended to be spent on education, but Perdue said she now plans to spend the money on the state’s day-to-day operating needs. North Carolina faces a $2.2 billion budget gap.
Some states with the worst deficits have brand new governors to deal with them. In Arizona, Gov. Jan Brewer (R) succeeded now-Homeland Security Secretary Janet Napolitano (D) as governor on Jan. 21. She proposed a $1 billion temporary tax increase this month. Illinois is in dire shape as well: a new study put out by the Commercial Club of Chicago says the size of the budget deficit has nearly doubled in two years, from $4.3 billion to $8.1 billion. There, Gov. Pat Quinn (D) took over on Jan. 29, immediately after Rod Blagojevich (D) was removed from office. Both new governors avoided getting into specifics of their budget plans during the first month in office. New taxes are likely to be part of the mix.
From taxing pornographic internet downloads and iPods to non-diet soda, almost no stone was left unturned by Gov. David Paterson as he looked to raise revenues to fill the state’s rapidly emptying coffers. But while New York’s dire fiscal straits—the once $5 billion budget gap grew to $13, then $14 billion—have prompted Paterson to propose a series of new fines and fees, New York is far from the only state looking for unusual ways of addressing a gaping budget gap.
California:
Golden State legislators in February rejected Gov. Arnold Schwarzenegger’s (R) proposed tax on golf-related activities aimed at reducing their staggering budget deficit of over $41 billion over the next 18 months. The proposed tax had targeted greens fees, practice balls, cart rentals, lessons and private-club membership fees and dues.
Massachusetts:
Gov. Deval Patrick (D) has proposed a gas tax and Treasurer Timothy Cahill (D) has a proposal to license three slot machine parlors around Massachusetts as a means to raise cash quickly (Cahill estimated that selling the slot parlor licenses could raise up to $3.3 billion right away). Patrick expressed skepticism about the slot machine plan, arguing that gambling resorts, though not an immediate solution, would create more jobs and economic development than slot parlors.
Pennsylvania:
Gov. Ed Rendell (D) is contending with a budget gap of $2.3 billion. He has proposed increasing cigarette taxes by 10 cents per pack and is pitching a plan for state control and legalization of video poker machines in bars. Rendell says that the revenue gained from state control of video poker and increased tax credits would go to helping prospective students pay for community colleges and state universities. According to Rendell, he cut $1 billion from the proposed state budget and needs the video poker money to fund the program.
North Carolina:
Gov. Beverly Perdue (D) ordered $87.6 million transferred from the state’s lottery reserve fund to a general fund, rendering them available for any spending purpose. Profits from the North Carolina Educational Lottery were intended to be spent on education, but Perdue said she now plans to spend the money on the state’s day-to-day operating needs. North Carolina faces a $2.2 billion budget gap.
Some states with the worst deficits have brand new governors to deal with them. In Arizona, Gov. Jan Brewer (R) succeeded now-Homeland Security Secretary Janet Napolitano (D) as governor on Jan. 21. She proposed a $1 billion temporary tax increase this month. Illinois is in dire shape as well: a new study put out by the Commercial Club of Chicago says the size of the budget deficit has nearly doubled in two years, from $4.3 billion to $8.1 billion. There, Gov. Pat Quinn (D) took over on Jan. 29, immediately after Rod Blagojevich (D) was removed from office. Both new governors avoided getting into specifics of their budget plans during the first month in office. New taxes are likely to be part of the mix.
