US House passes budget with $6 trillion cuts. Still not good enough.

The US House of Representatives passed their 2012 budget. While it does well to open the doors and conversation towards a reform of entitlement spending, especially in Medicare and Medicaid, it doesn’t do enough to handle spending, debts and the deficit.

Even though there are $6 trillion in cuts, it takes place over 10 years and there are still deficits for 2012 ($1 trillion!) and more deficits way into the future, as much as $391 billion into 2021. This isn’t good enough!

Ruling class Republicans still can’t shed their Washington ways and they are risking a third party by the Tea Party and others in the popular wave building in the US. The party is likely to vanish in importance  in about 5 years.

The Editor.

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Texas Medicaid Disaster. 1 in 6 Texans on Medicaid. $24.6 billion per year.

“The federal entitlement program with the insatiable appetite that Friedholm took over in late 1992 ate a total of $6.3 billion that year. In those years the Medicaid budget grew by about $1 billion a year. By 2009, the Medicaid hunger in Texas had grown by nearly four times to $24.6 billion, gobbling up a little more than one in every four dollars in the state budget.

The Texas Department of Health and Human Services projects the annual feeding frenzy to grow by about $3 billion in each of the next two years. Even if the Legislature passed a more austere budget for 2011-12, the percentage of state spending devoted to the health insurance program for the poor is expected to increase, albeit more slowly.”

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US Ranks Horrible 28th in World in Government Financial Responsibility. Entitlements Unsustainable.

A new ranking has the US 28th among countries of the world. We rank worse than Mexico!

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Interesting video below of David Walker, former US Comptroller General, who says that Social Security is $38 Trillion under water, and that even when the economy recovers fully it will not resolve these problems, nor will trying to inflate our way out of this. The entitlement programs must be reformed! But politicians won’t fix them.


Illegal Aliens Cost California Citizens $10.5 Billion Every Year

“California’s illegal immigrant population is costing the state’s taxpayers more than $10.5 billion per year for education, medical care and incarceration”

  • Free Education for Illegals: costs of K-12 schooling approximately $7.7 billion annually.
  • Free Health care: about $1.4 billion a year.
  • The cost of incarcerating illegal aliens: about $1.4 billion a year.

This is a report from 2004. Imagine how high the cost is now!

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San Francisco: 20% Cuts won’t Solve Deficit. Govt Union Worker Benefits Crisis.

Just like almost every local and state govt, San Francisco is crushing itself from giving enormous benefits to their govt union employees.

It’s now about $1.1 billion short in pensions promised to govt workers, and about $4 billion short it owes union workers in health care benefits.

Within 5 years annual city spending on health care benefits and pension costs will exceed their entire budget for the running of “the Police Department, Fire Department, Sheriff’s Department, district attorney’s office, and adult and juvenile probation departments combined”.

What will they do to handle this?

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Even if city cuts 20% of budget, it won’t solve the current deficit of over$ 380 million.

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Several States Seek to Limit Government Union Workers Collective Bargaining

It is already illegal for government union workers to collectively bargain in Virginia and Texas.

While the media has focused attention on Wisconsin, limits on government union worker collective bargaining have been introduced in several other states: Ohio, Tennessee, Idaho, Indiana, Kansas, Iowa,  Colorado, Nebraska, Nevada, Oklahoma, New Mexico and Washington.

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PA Govt Worker Union Pensions “severly distressed” in “death spiral”

City pension systems for government union workers are in crisis in Pennsylvania.

Pittsburgh, Philadelphia, Scranton and others are rated “severely distressed”.

Pittsburgh is the worst:

  • spends 50 cents of every dollar in their budget on govt worker pensions, health care and debt.
  • there are more than 2 retirees that have to be paid benefits for every active govt employee.
  • the pension for govt workers has a $700 mill unfunded liability.
  • even traditionally pro-union Democrat mayor says something has to be done.

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