Tuesday, June 09, 2009

What is adding to the unemployment picture? Joe Biden is correct. The States that refused the stimulus.

....Three Southern GOP governors (click title to entry - thank you) (the unemployment rate is rising in all three states) with potential White House ambitions in 2012 — Perry from Texas, Bobby Jindal from Louisiana and Mark Sanford from South Carolina — have turned aside portions of the federal stimulus package. The South Carolina Supreme Court has ordered Sanford to request the funds....

Louisiana, Texas and South Carolina are poster children for the Biden Reality. California is well above the national average and dysfunctionally handling its budget problems. Nevada's rate is climbing every month. (There is an interactive at this link if one clicks here, which allows the national average to be compared state by state and county by county. Some areas are recovering.)

But, the obvious lack of 'commitment' to the Stimulus in states such as Louisiana can't be understated. There was a spike in Louisiana in 2005 due to Katrina.


Louisiana Mulling $0.15 Internet Fee (click here)
Monday, June 08, 2009 - by Shawn Oliver
We've always heard that the best things in life are free. We've also heard that nothing great lasts forever. Mix those two mantras together, and you get this. Down in Louisiana, a $0.15 surcharge is being tossed around as an idea to stop online criminal activity (and raise state income, no doubt), which would be levied on Internet access across the state. Sadly, the House has already voted in favor with an 81-9 vote, though Governor Bobby Jindal strongly opposes....


The news regarding the economic collapse of the Bush White House bearly hit the news in November of 2008 and the unemployment rate in Louisiana was 5.3. President Obama's inauguration occurred on January 20, 2009 and the unemployment rate in Louisiana went from 5.5 in December 2008 to 5.1.


The Stimulus Package passed Congress about February 15, 2009 while the Louisiana unemployment rate became 5.7. The Louisiana Governor along with other hard line Republican Governors declined the Stimulus monies based on 'philosophical' reasons and today Louisiana's unemployment rate is 6.2 and rising.

Besides a rising unemployment rate, the Louisiana Governor is playing with education. Education is a focus of the Stimulus Plan.

Associated Press
Louisiana governor says he'll veto tax cut delay (click here)
By MELINDA DESLATTE
05.26.09, 03:05 PM EDT
Louisiana Gov. Bobby Jindal threatened to veto any attempts to delay a planned tax break for middle- and upper-income taxpayers, but he said he was working with senators on other ways to stave off some proposed college budget cuts.
Among the ideas offered by senators, Jindal said Tuesday, is a budget maneuver that would use money from the state's "rainy day" fund for higher education and replenish the fund with dollars from a planned tax amnesty program....


California basically needs a 'Ring Master.' The longer the 'push me - pull you' authority goes on, the longer it will take to stabilize the circumstances and seek real progress toward stabilizing a global economy all by itself.

California cities, counties vow to fight state over budget tactics (click here)
By Loretta Kalb and Robert Lewis
lkalb@sacbee.com
Published: Thursday, May. 28, 2009 - 12:00 am Page 1A
Arguing that the state is nickel and diming them to oblivion, leaders of California's financially beleaguered counties and cities say they plan to fight back.
They suggested Wednesday that talks should begin on how to more equitably restructure government financing.
"The governor and Legislature can't solve this problem by themselves," said Yolo County Supervisor Mike McGowan. "The top-down approach has not worked."...


What is really interesting is that The Governator was the first to jump at the chance for an economic stimulus with shovel ready jobs, yet 'in application' he is holding out for a court date with the federal government to reappropriate the Stimulus monies to simply 'pay the bills.' Come on, Ahnold, that is dirty politics.


U.S. threatens to rescind stimulus money over wage cuts (click here)
The Obama administration threatens to rescind billions in stimulus money if Gov. Schwarzenegger and lawmakers do not restore wage cuts to unionized home healthcare workers.
By Evan Halper May 8, 2009
Reporting from Sacramento -- The Obama administration is threatening to rescind billions of dollars in federal stimulus money if Gov. Arnold Schwarzenegger and state lawmakers do not restore wage cuts to unionized home healthcare workers approved in February as part of the budget.Schwarzenegger's office was advised this week by federal health officials that the wage reduction, which will save California $74 million, violates provisions of the American Recovery and Reinvestment Act. Failure to revoke the scheduled wage cut before it takes effect July 1 could cost California $6.8 billion in stimulus money, according to state officials.
The news comes as state lawmakers are already facing a severe cash crisis, with the state at risk of running out of money in July....



Okay, here's the deal. The longer it takes to 'spend the money' the longer it takes to come back to the states in the way of income tax, sales tax, etc. and the Stimulus basically becomes a negative feedback loop all by itself as the 'struggle' to control the MONEY is more of an issue than the unemployement.