Red States, Blue States, all States got Problems

Mish posted today about state budget shortfalls. We've all heard about the blue states fiscal woes as the Democrats are running off to DC hoping Obama will bring forth a rain of greenbacks upon them, but what of the red states? Our buddy Scipio is concerned that the red states will end up being robbed to pay for profligate liberals. Well, two of the reddest of the red, Georgia and Utah, are also in big trouble. So what are they doing about it?

They're cutting their spending. Georgia may end up $3B in the red.

How serious are Georgia lawmakers taking the situation?

House Speaker Glenn Richardson (R-Hiram) and Lt. Gov. Casey Cagle, the Senate’s president, said Wednesday that both chambers are putting a hold on politically popular special project grants to communities and organizations, which are commonly called “pork” at the Capitol.

“As we face a significant budget shortfall in our state, the Senate is working to identify essential government spending, prioritize that spending and find further efficiencies,” Cagle said. “Local assistance grants should not be exempt from consideration.”

In Utah, the budget may be $1B in the red.

When it comes to Utah, the report concluded, "Considering the circumstances, the state is doing relatively well. Officials still have options, such as the rainy day fund ($414 million) or bonding to get through the shortfall."

But the analysts at the organization, based in Washington, D.C., also sounded a note of caution about Utah's fiscal future: "Nevertheless, officials face some difficult choices in the 2009 general session."

Gov. Jon Huntsman Jr. has rolled out his plan for dealing with those choices, a $10.6 billion budget that includes across-the- board cuts of as much as 7 percent that likely mean employee layoffs, as well as a $50 million increase in motor-vehicle registration fees.

Over at Scipio's blog, I cautioned against red state gloating. Having read a little more about what the various states are doing, I'd suggest that Georgia and Utah are rolling up their sleeves and dealing with the problem like adults. I'm not so sure about the others.