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VOL 2


WHAT’S INSIDE MEDICARE & SOCIAL SECURITY Drivers of Our Debt

6

IN THE SPOTLIGHT: MEDICARE An In Depth Overview of Its Financial Future

13

IN THE SPOTLIGHT: SOCIAL SECURITY An In Depth Overview of Its Financial Future

18

DEFENSE How Bloated Spending is Hurting our Nation’s Security

20

STATE FACT SHEETS How Does Your State’s Budget Fare? [click the state to find out]

Alabama

Indiana

Nebraska

South Carolina

Alaska

Iowa

Nevada

South Dakota

Arizona

Kansas

New Hampshire

Tennessee

Arkansas

Kentucky

New Jersey

Texas

California

Louisiana

New Mexico

Utah

Colorado

Maine

New York

Vermont

Connecticut

Maryland

North Carolina

Virginia

Delaware

Massachusetts

North Dakota

Washington

Florida

Michigan

Ohio

West Virginia

Georgia

Minnesota

Oklahoma

Wisconsin

Hawaii

Mississippi

Oregon

Wyoming

Idaho

Missouri

Pennsylvania

Illinois

Montana

Rhode Island


MEDICARE & SOCIAL SECURITY: drivers of our debt

On May 13, 2011, the Medicare and Social Security Boards of Trustees released their annual reports on the financial status of both programs. These reports made it clear that the government must address the growing costs associated with the two largest federal programs. Recently, the President estimated in his budget that Medicare and Social Security spending will consume 33-percent1 of all federal government spending for the government’s next Fiscal Year, which begins on October 1, 2012. With Americans living longer lives, 10,000 babyboomers retiring a day2, lower birthrates, and the ever increasing cost of healthcare, the costs of these programs will continue to grow. Documented in this budget briefing book, Medicare and Social Security face an unfunded liability of $38.3 trillion over the next 75-years. To put this number in perspective, in 2010 the United States government collected $2.2 trillion3 in taxes.


TRUSTEES LEAN TOWARDS REFORM 4

As the nation’s financial condition continues to hamper the American people, government programs, such as Medicare and Social Security, are no exception. According to the trustees, these programs are now challenged with costs that are not sustainable under current government financing; thus, in order to avoid an added burden to both beneficiaries and taxpayers, modifications are required without having significant disruptions to the programs. WHAT ARE THE DRIVERS OF DEBT FOR THESE PROGRAMS?

The growing number of babyboomers entering retirement in comparison with the lower-birth-rate of younger generations. The rapid increase in healthcare costs per person. Medicare and Social Security worked fine in previous years when there were many more workers on the bottom of the pyramid than retirees on top. As the pyramid begins to flip in the opposite direction, with more and more retirees being added on top of the pyramid and fewer workers entering the workforce due to lower birthrates, added with the increased costs of healthcare and the impacts of individuals living longer lives than they did when the programs were created, it’s easy to see why there are problems.

1 http://www.whitehouse.gov/omb/budget 2

http://pewresearch.org/databank/dailynumber/?NumberID=1150

3 CBO. An Analysis of the President’s Budgetary Proposals for Fiscal Year 2012. Pp. 2. http://www.cbo.gov/ ftpdocs/121xx/doc12130/04-15-AnalysisPresidentsBudget.pdf 4 Status of the Social Security and Medicare Programs, A Summary of the 2011 Annual Reports. Social Security and Medi-

care Board of Trustees. http://www.ssa.gov/oact/trsum/index.html


IN T HE SPO T L IG HT: medicare

OVERVIEW

Just the Facts: A Summery of Findings

Medicare 101: What is Medicare

Medicare Hospital Coverage Going Broke

Medicare 201: What’s the Real Story with Medicare’s Other Finances

JUST THE FACTS: A SUMMARY OF FINDINGS Medicare’s primary trust fund, which collects Medicare payroll taxes and only funds in-patient hospital care and related hospital costs, will run out of funds in thirteen years—five years sooner than was projected in last year’s trustees report. Over the next 75-years, this trust fund faces an unfunded liability of $3.0 trillion—meaning the money is not in the trust fund to cover benefits over this timeframe. Medicare’s other services, such as general doctor visits and prescription drug coverage, are primarily funded by the general taxes collected by the United States government. To be clear, they are not financed by the Medicare payroll tax. Since this percentage of federal funding happens automati-


cally each year, the trustees found these parts of Medicare to be actuarially sound. However, this is misleading when put in context because over the next 75-years, these parts of Medicare face an unfunded liability of $28.8 trillion—meaning the federal government has to find a way to pay $28.8 trillion out of its general fund over this timeframe. MEDICARE 101: WHAT IS MEDICARE1 Medicare, which was created in 1965, provides healthcare coverage for individuals in the United States who are 65 and older until their death. In 1972, the program was expanded to provide healthcare for the disabled who are under 65 years old. In 2006, the program was expanded for a third time to provide prescription drug coverage for eligible participants (Pp. 249-250). In 2010, 47.5 million individuals were covered by Medicare (P. 4). According to the 2010 Census, the U.S. population stands at 308 million2. This means that over 15% of the U.S. population is currently covered by Medicare. MEDICARE IS MADE UP OF FOUR KEY PARTS:

A

B

C

D


A

MEDICARE PART A

funded by federal payroll taxes3 on earnings, Medicare Part A

provides in-patient hospital care and other related services. Funds collected from taxes go into the Medicare Hospital Trust Fund. For retired individuals who paid into the system4, there are no premium costs for this service. Currently, the Medicare payroll tax taxes earnings at “…1.45 percent for employees and employers, each. The self-employed pay 2.9 percent (P. 257). “According to the trustees, this “…fund is not adequately financed over the next 10 years” (P. 4).

B

MEDICARE PART B funded by healthcare premiums—monthly payments of the individ-

uals enrolled in the program—and government money (in 2010, nearly 73% of the total funding came from government money collected from general federal taxes). Covers doctor appointment costs and other related services. In 2011, the Part B monthly premium for most beneficiaries is approximately $1005. Medicare Parts A and B are considered “traditional” and “fee-for-service” Medicare.

C

MEDICARE PART C (i.e., “Medicare Advantage”)

funded by money from Medicare Parts A and B, Medicare Part C

is private insurance approved by Medicare that is contracted “…to provide Part A and Part B health services” (P. 4). These plans may include prescription drug coverage as well. The premiums vary greatly based upon the plan selected. There are many different options to choose from. For example, some Medicare Advantage plans may have the cost of a gym membership included while others may not. In general, such features are reflected in the price6.


If you have Medicare Part C, you do not have Medicare Part A or B but you may have Medicare Part D.

D

MEDICARE PART D

funded by healthcare premiums and government money (in 2010,

nearly 83% of the total funding came from government money collected from general federal taxes). The plan “pays private plans to provide prescription drug coverage” (P. 253). Like Medicare Part C, there are many different options to choose from. In 2011, the average Part D monthly premium is approximately $407. MEDICARE HOSPITAL COVERAGE is Medicare Part A. It receives funds from the Medicare payroll tax (and trust fund reserves), which are used to pay for in-patient hospital care and other related services (P. 252). What is a trust fund? A trust fund is a separate account maintained by the Department of Treasury, which “…may be used only for a specified purpose” (P. 259). For the Medicare Trust Fund, money that is not used for current benefits and administrative costs are invested in basic government bonds, which earn interest for the trust fund (P. 259). If changes are not made to the program, there will be significant disruptions in care because not enough money will exist in the program. According to the trustees, this “…fund is not adequately financed over the next 10 years” (P. 4). The trustees now estimate that this trust fund will run out of funds in 13-years, five-years earlier than was projected in last year’s report (P. 4). What happens if the fund goes insolvent? No one knows for sure. “Neither the Social Security Trust Fund nor the Medicare Trust Fund has ever run out of money and there are no provisions…governing what would happen in such event9.”


Here are just the facts:  in 2010, there were about 3.4 workers paying into the Medicare Part A system for every beneficiary.  In 2030, projections are there will be 2.3 workers paying into the system for every beneficiary.  By 2085, there is expected to be only 2.0 workers per beneficiary (P. 80). According to the trustees, the current unfunded obligation for Medicare Part A over the next 75-years is $3 trillion (P. 83). Currently, the trust fund has $272 billion in funds (P. 4). In 2010, since less was taken in from Medicare taxes than was paid in benefits, Medicare was forced to redeem $32.3 billion from its trust fund. In past years, when there was excess Medicare taxes not used to paid benefits, the remaining funds were invested in special U.S. government bonds. Like the Social Security Trust fund, the money from the Medicare Trust fund was used by the government for whatever expenses it had at the time. In other words, this means that the government spent the ‘surplus’ money as soon as it received the money for general government operations and Medicare, in return, received a U.S. government bond that earns interest. MEDICARE 201: WHAT’S THE REAL STORY WITH MEDICARE’S OTHER FINANCES 10 According to the trustees, Medicare Parts B and D are “…adequately financed over the next 10 years and beyond…” (Pp. 4–5).

However, this statement is misleading when put in context. In 2010,

73-percent of the costs of Part B came directly from funds the United

States collects in general taxes (109). Likewise in 2010, 83-percent

of the costs of Part D came directly from funds the United States collects in general taxes (P. 134). Exactly how the government funds Parts B and D are complex formulas; however, the federal govern ment is the primary contributor for the costs and will continue to be


so in the future if the law remains unchanged. Therefore, to conclude that Parts B and D are actuarially strong would be a grave mistake. Unlike Medicare Part A, which collects the Medicare payroll tax and has a trust fund for the excess funds it does not spend on benefits, Medicare Parts B and D rely every year on general federal govern ment funding, which is not tied to the Medicare payroll tax. In 2010, general government funds contributed $153.5 billion for Part B (p. 109). According to the trustees, the current cost for Part B for the next 75-years is $18.9 trillion (P. 130). In this calculation, the trustees assumed that 73 percent of Part B will be paid for by the federal government for the indefinite future. In 2010, general government funds contributed $51.1 billion for Part D (p. 134). According to the trustees, the current cost for Part D over the next 75-years is $9.9 trillion (P. 146). In this calculation, the trustees assumed that 75 percent of Part D will be paid for by the federal government for the indefinite future. This equals $24.2 trillion in unfunded federal government liabilities for Medicare over the next 75-years.

Additionally, the Trustees report is flawed because it does not take

into account the blocking of the sustainable growth rate (“SGR”) formula.

The sustainable growth rate formula was enacted to control

Medicare spending in the Balanced Budget Act of 1997. If fully

implemented, SGR would ‘control’ Medicare spending by ‘control

ling’ what doctors are paid for certain Medicare services (Pp. 212-213).

Congress routinely blocks the sustainable growth rate formula on a

“temporary basis.” The current block last until January 1, 2012.


Why temporary? Because it “costs” so much to eliminate the SGR

on a permanent basis. Therefore, Congress prefers blocking it on a

short-term basis.

If enacted in 2012, payments to doctors for certain Medicare services

would immediately fall by 29.4 percent (P. 213). If this were to hap-

pen, many believe that a large amount of doctors would stop seeing

Medicare patients altogether.

Because it is almost certain to be “temporarily extended” beyond

January 1, 2012, the trustees note that the future costs for Medicare are likely to surpass those shown by the current estimates in the report

(P. 17).

Medicare Part C is funded by Part A and Part B trust funds (P. 192). Medicare Part C is private insurance that is contracted “…to provide Part A and Part B health services” (P. 4). Of the 47.5 million individuals were covered by Medicare in 2010, 25 percent, chose Part C (P. 4). In 2010, Part A paid $60.7 billion and Part B paid $55.2 for Medicare Part C (P. 199).

1

In general, unless otherwise noted, information in this section is found in the 2011 Annual Report of the Boards of Trustees

of the Federal Hospital Insurance Fund and Federal Supplemental Medical Insurance Trust Funds. https://www.cms.gov/ ReportsTrustFunds/downloads/tr2011.pdf 2

http://2010.census.gov/news/releases/operations/cb10-cn93.html

3 For the purposes of this document, “payroll tax” also includes Medicare self-employment taxes, which are triggered if you work for yourself instead of an employer. 4

In general, for the purposes of being “paid into the system,” it means working 10 or more years. https://questions.medi-

care.gov/app/answers/detail/a_id/2305/~/medicare-premiums-and-coinsurance-rates-for-2011 5

https://questions.medicare.gov/app/answers/detail/a_id/2306

6

This information was found by researching various Medicare Part C policies on the internet.

7

Kaiser Family Foundation. “Medicare Part D Spotlight.” http://www.kff.org/medicare/upload/8107.pdf

8

In general, unless otherwise noted, information in this section is found in the 2011 Annual Report of the Boards of Trustees

of the Federal Hospital Insurance Fund and Federal Supplemental Medical Insurance Trust Funds. https://www.cms.gov/ ReportsTrustFunds/downloads/tr2011.pdf 9

CRS. “Medicare: History of Part A Trust Fund Insolvency Projections.” May 2009. Pg. 3. http://aging.senate.gov/crs/

medicare14.pdf 10

In general, unless otherwise noted, information in this section is found in the 2011 Annual Report of the Boards of Trustees

of the Federal Hospital Insurance Fund and Federal Supplemental Medical Insurance Trust Funds. https://www.cms.gov/ ReportsTrustFunds/downloads/tr2011.pdf


IN T HE SPO T L I G HT: social security

OVERVIEW

Just the Facts: A Summary of Findings

Social Security 101: What is Social Security

Social Security 201: The Truth about its Finances

Two Prominent Views on the State of Social Security

JUST THE FACTS: A SUMMARY OF FINDINGS Social Security’s retiree income trust fund, which collects Social Security payroll taxes1 and pays for retirees’ income, will run out of funds in 2036, which is one-year earlier than was projected in last year’s trustees report. Social Security’s disability income trust fund, which pays disabled workers a supplemental income, will run out of funds in seven years. According to the trustees, the current unfunded obligation for Social Security over the next 75 years is $6.5 trillion. SOCIAL SECURITY 101: WHAT IS SOCIAL SECURITY 2 Social Security was created in 1935. In general, the program creates a “basic level of monthly income” once an individual reaches normal retirement


age until their death. In 2011, the average Social Security payment for a retired person is $1,177 per month3. In 1939, the program was extended to give certain benefits for family members when a parent or spouse who works dies. In 1956, the program was extended again to provide income for disabled workers (and their dependents) who are unable, or partly unable, to work due to a disability. In 2010, 54 million individuals were covered by Social Security4. According to the 2010 Census, the U.S. population stands at 308 million5. This means that nearly 18-percent of the U.S. population is currently covered by Social Security. Since the program has more retirees being added to the system and less and less workers paying into it, legislative changes are required to keep Social Security operating without substantial disruptions to the program6. Here are the facts: from 1974 – 2008, there were between 3.2 and 3.4 workers paying Social Security taxes for every beneficiary. In 2010, there were 2.9 workers paying Social Security taxes for every beneficiary. By 2035, projections are there will be 2.1 workers for every beneficiary7. With individuals living longer lives than they did in 1935 when the program was created, and with fewer workers paying into the system due to lower birthrates, the system is going broke. An individual qualifies for Social Security retirement benefits if they work at least 10-years while contributing to the program with Social Security payroll taxes. Currently, the Social Security taxes earnings at 6.2 percent for employees and employers, each. The self-employed pay 12.4 percent8. The Social Security payroll tax only taxes earnings up to $106,8009. Social Security also is financed by income taxes on Social Security benefits and interest income earned from the trust fund. To get full Social Security benefits, you have to reach the normal retirement age. For those born in 1937


or earlier, the normal retirement age in 65. This age is gradually increasing over time to 67, which will apply for those born in 1960 and the proceeding years. Individuals can opt to get early retirement benefits at 62; however, their benefits are permanently reduced. Exact benefits are calculated by using a complex benefit formula. The benefit formula provides more benefits relative to wages for low-income earners while providing high-income earners a degree of equity since they have higher lifetime earning. SOCIAL SECURITY 201: THE TRUTH ABOUT ITS FINANCES 10 Social Security receives its funding from the Social Security payroll tax. These payroll taxes are deposited into separate trust fund accounts in the Department of Treasury. For excess funds not immediately spent to pay benefits, these funds are invested in special U.S. government bonds (P. 221). From 1984 until 2010, the Social Security payroll tax made a surplus, meaning more money was taken in through taxes than was paid out in benefits (Pp. 142-143). By law, when the program was running a surplus, the surplus was “…credited to the Social Security trust funds in the form of U.S. government securities. The money itself, however, [was] used to pay for whatever other expenses the government…” had at the time11. In other words, this means that the government spent the ‘surplus’ money as soon as it received it for general government operations and Social Security, in return, received a U.S. government bond that earns interest.

SOCIAL SECURITY HAS TWO SEPARATE TRUST FUNDS:

1

OLD-AGE AND SURVIVORS INSURANCE TRUST FUND

(com-

monly referred to in the public as the “Social Security Trust Fund”)—pays retirement income for qualified retirees (and their dependents) (Pp. 222). Is expected to run out of funds by 2036, one-year earlier than originally projected in last year’s trustees report.


2

DISABILITY INSURANCE TRUST FUND— pays

income for dis-

abled workers (and their dependents) who are unable, or partly unable, to work due to a disability (Pp. 222). This fund is expected to drain its fund by the year 2018.

At the end of 2010, the balance of both Social Security Trust Funds is $2.6 trillion. According to the trustees, the current unfunded obligation for Social Security over the next 75 years is $6.5 trillion (P. 12). TWO PROMINENT VIEWS ON THE STATE OF SOCIAL SECURITY 12 How bad is the financial situation with Social Security? Is the money in the trust fund really there? Well, it depends how you view the situation. Here are two different takes: Senator Sanders of Vermont: “…We keep hearing that the Social Security trust fund has a pile of worthless IOUs. The fact is, Social Security invests the surplus money it receives from workers, from the payroll tax, into U.S. Government bonds, the same bonds China or anybody else purchases. These bonds are backed by the full faith and credit of the U.S. Government. And in our entire history—and many of us want to make sure this continues—the U.S. Government has never defaulted on its debt obligations. The point is, to say these are worthless IOUs is not dissimilar to saying: Guess what. Because we have a deep deficit and a deep national debt, we don’t have any money to fund equipment for soldiers who are in the field in Afghanistan or Iraq. They are just worthless IOUs, and we can’t fund them. That is, of course, nonsense.” Senator Coburn of Oklahoma: “…The flaw in the argument given by my colleague from Vermont (Senator Sanders) is the assumption that the IOU at the Treasury for Social Security is good. It is good as long as people will loan


us money. It is not any good if they will not. …And having looked at every aspect of Social Security, I can tell you if we are not able to borrow the $2.6 trillion, the benefits will not be there. The money has been stolen. There is no trust fund. There is no money there. Congresses, under both Republican and Democratic control, both Republican and Democratic Presidencies, have stolen money from Social Security and spent it. The money is gone. …The question is, does this Congress owe… [it] back to Social Security? Yes. But where do we get the money to repay it?”

1 For the purposes of this document, “payroll tax” also includes Social Security self-employment taxes, which are triggered if you work for yourself instead of an employer. 2 In general, unless otherwise noted, information in this section is found in the GAO Social Security Reform Answers to Key Questions. May 2005. http://www.gao.gov/new.items/d05193sp.pdf 3 http://ssa-custhelp.ssa.gov/app/answers/detail/a_id/13/~/average-monthly-social-security-benefit-for-a-retired-worker 4 2011 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. P. 2. http://www.ssa.gov/oact/tr/2011/tr2011.pdf. 5 http://2010.census.gov/news/releases/operations/cb10-cn93.html 6 Status of the Social Security and Medicare Programs, A Summary of the 2011 Annual Reports. Social Security and Medicare Board of Trustees. http://www.ssa.gov/oact/trsum/index.html 7 2011 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. P. 10. http://www.ssa.gov/oact/tr/2011/tr2011.pdf. 8 http://www.ssa.gov/oact/progdata/taxRates.html 9 http://www.ssa.gov/oact/COLA/cbb.html#Series 10 In general, unless otherwise noted, information in this section is found in 2011 Annual Report of the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds. http://www.ssa.gov/oact/tr/2011/tr2011.pdf. 10 In general, unless otherwise noted, the information contained in this section is found in the Status of the Social Security and Medicare Programs, A Summary of the 2011 Annual Reports. http://www.ssa.gov/oact/tr/2011/tr2011.pdf. 11 CRS. “Social Security: Trust Fund Investment Practices.” October 2010. http://aging.senate.gov/crs/ss5.pdf 12 Congressional Record – Senate. March 16, 2011. Accessible by searching http://thomas.loc.gov/home/LegislativeData. php?&n=Record.


D E FEN SE SP E NDING : How Bloated Spending is Hurting our Nation’s Security

“The biggest threat to our national security is our debt.”

– Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff1

“It is no secret that the United States faces a serious fiscal predicament that could turn into a crisis—of credit, of confidence, of our position in the world – if not addressed soon…as a matter of simple arithmetic and political reality, the Department of Defense must at least be part of the solution.” – Robert Gates, Secretary of Defense (2006-2011)2 Washington’s unsustainable spending threatens the economy, the nation’s credit standing in the world3, and is making the country less secure over time. The fact is that as the U.S. debt continues to grow, it makes the United States more beholden to foreign countries, such as China, that finance the United States’ growing appetite for spending. DEFENSE: A DRIVER OF FEDERAL DEBT If President Obama’s 2012 budget for defense is enacted into law, next year’s national defense spending would consume 20-percent of total government spending4. Since 2001, funding for defense programs has doubled5. Currently, no other nation comes close to matching the United States in defense capabilities or spending.


Last year, Washington spent $700 billion on defense, which represents 43-percent of total defense spending among all countries in the world.6 For government spending in 2011 that is not automatically funded (such as Social Security spending), many areas of government saw a modest spending decrease. This was not so for defense spending. In fact, Congress raised the defense budget by approximately $5.7 billion dollars. 7 THE CONFLICT While no one questions the need to protect and support our troops in conflict, the question arises: should Washington pursue further military commitments and projects, or focus on the level of current debt so that tomorrow’s troops will have the tools they need? The U.S. has overstretched itself with defense spending commitments. Currently, the United States is fighting two major conflicts in foreign countries, retains troops in countries throughout the world, and is involved in peacekeeping and nation building missions across the globe. The simple fact is that the U.S. level of debt is so heavy, it cannot afford to keep defense spending off the table when it comes to debt reduction8. “The U.S. Government’s ambitions now outstrip its capacities… abroad” in respect to defense spending9. 1 Joint Chiefs of Staff: National Debt Poses Security Threat, Mullen Says. http://www.jcs.mil/newsarticle.aspx?ID=360 2 The American: Gates at AEI: Strategy Must Drive Budget Decisions. May 24, 2011. http://blog.american.com/2011/05/ gates-at-aei-strategy-must-drive-budget-decisions/ 3 Foreign Affairs: A Leaner, Meaner Defense. January/February 2011. http://www.foreignaffairs.com/articles/67145/ gordon-adams-and-matthew-leatherman/a-leaner-and-meaner-defense 4 OMB: President’s FY12 Budget. February 2011. http://www.whitehouse.gov/omb/budget/Overview/ 5 Foreign Affairs: A Leaner, Meaner Defense. January/February 2011. http://www.foreignaffairs.com/articles/67145/ gordon-adams-and-matthew-leatherman/a-leaner-and-meaner-defense 6 Stockholm International Peace Research Institute: Military Expenditure Database. http://www.sipri.org/databases/milex 7 OMB: President’s FY12 Budget. February 2011. http://www.whitehouse.gov/omb/budget/Overview/ CQ Weekly: 2012 Appropriations – Defense: Parties Unite to Increase Pentagon Budget. May 30, 2011. http://www.cq.com/ doc/weeklyreport-3879408?wr=U2ZyOGV0Ymg1TTNTcnVnN2hZdip0Zw 8 Foreign Affairs: A Leaner, Meaner Defense. January/February 2011. http://www.foreignaffairs.com/articles/67145/ gordon-adams-and-matthew-leatherman/a-leaner-and-meaner-defense 9 Foreign Affairs: A Leaner, Meaner Defense. January/February 2011. http://www.foreignaffairs.com/articles/67145/ gordon-adams-and-matthew-leatherman/a-leaner-and-meaner-defense


STATE FACT S H E E T S : How Does Your State’s Budget Fare?


ALABAMA BU DG E T:

Total State Expenditures (FY 2010 estimated): $24.5 billion

Income Tax Rate (Tax Year 2011): 5 percent

Sales Tax Rate (2011): 4 percent

Total FY 2011 Budget Deficit: $586 million, or 8.3% of the budget

Projected FY 2012 Budget Deficit:

$979 million, or 13.9% of the budget

Pension Liability & % of Liability Funded (FY 2009): $41,634,55, 74% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -2.1 percent

Unemployment Rate (May 2011): 9.6 percent

Foreclosure Rate (May 2011): 1 in every 1,433 houses

FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.2 billion

Stimulus Money Awarded: $3,659,407,996

Examples of Stimulus Spending: The Natural Resources Conservation Service received $145 million for watershed operations and flood protection in financially dis tressed counties. Instead, $59 million went to counties with unemployment below the national average. Montgomery received $2 million to investigate converting the city’s garbage into gas.


FI S CA L PR OM I S ES

G O V. R OB E RT B E N T L E Y ( R )

“We are in challenging economic times and state government must do what every Alabama family is doing right now and that is find ways to cut back on spending. The Alabama Commission on Improving State Government will take an in-depth look at the current cost structure of every state agency and look for new and effective ways to cut costs without cutting essential services.�

ALASKA BU D G E T:

Total State Expenditures (FY 2010 estimated): $9.7 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): No state sales tax Total FY 2011 Budget Deficit: No deficit Projected FY 2012 Budget Deficit: No deficit projected Pension Liability and % of Liability Funded (FY 2009): $15,347,768, 61% funded

E CO NO MY:

Economic Growth (2008 to 2009): 3.5 percent Unemployment Rate (May 2011): 7.4 percent Foreclosure Rate (May 2011): 1 in every 1,710 houses


F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $3.2 billion

Stimulus Money Awarded: $2,190,583,809 Example of Stimulus Spending: The Federal Aviation Administration allocated $15 million to replace Ouzinkie Airport, which averages less than 2 flights a day.

F I S CAL PR OM I SE S G O V. S E A N PA R N E L L ( R )

“I have already met with legislative leadership and many members here to express my willingness to work together to restrain government spending. I have asked the leaders, gathered in these chambers, to establish a spending limit with me early in session so together we can avoid the spending frenzy at the end of session.�

ARIZONA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $27.5 billion Income Tax Rate (Tax Year 2011): 4.54 percent Sales Tax Rate (2011):

9.3 percent

Total FY 2011 Budget Deficit:

$3.1 billion, or 36.5 percent of the budget

Projected FY 2012 Budget Deficit: $974 million, or 11.5 percent of the budget

Pension Liability and % of Liability Funded (FY 2009):

$44,078,394, 78% funded


E CO NO MY:

Economic Growth (2008 to 2009): -3.9 percent Unemployment Rate (May 2011): 9.1 percent Foreclosure Rate (May 2011): 1 in every 210 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.7 billion Stimulus Money Awarded: $6,419,642,484 Examples of Stimulus Spending: $1.5 million was slated to change 400 road signs from kilometers to miles. Residents in the relatively unpopulated southern corridor think the change will cause confusion. Researchers at the University of Arizona received $314,964 to examine what happened after the Big Bang and to develop a course in astronomy for non- astronomy majors at the University of Cape Coast in Ghana. FI S CAL P RO M I SE S G O V. JAN BR E W E R ( R )

“[W]e intend to leave Arizona with a budget that is balanced; fueled by private enterprise, unencumbered by heavy regulations and unnecessary rules.�


ARKANSAS BU DG E T:

Total State Expenditures (FY 2010 estimated): $20.2 billion Income Tax Rate (Tax Year 2011): 7 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: No deficit Projected FY 2012 Budget Deficit: No deficit projected Pension Liability and % of Liability Funded (FY 2009): $22,698,906, 78% funded

E C O NO M Y:

Economic Growth (2008 to 2009): 0.6 percent Unemployment Rate (May 2011): 7.8 percent Foreclosure Rate (May 2011): 1 in every 907 houses F E D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $7.1 billion Stimulus Money Awarded: $2,335,526,961 Example of Stimulus Spending: The federal government spent $1,047 to purchase a riding mower from the Toro Company to cut the grass at the Fayetteville National Cemetery.

F I S CAL P RO M I SE S G O V. M I K E B E E B E ( D )

“If we are to retain the enviable national position we now hold, we must remain cautious and conservative. ‌ We will


balance our budget and serve as a model for fiscal responsibility in difficult times. We will take the steps necessary to make our government more efficient and more cost-effective.�

CALIFORNIA BU DG E T:

Total State Expenditures (FY 2010 estimated): $217.8 billion Income Tax Rate (Tax Year 2011): 9.3 percent Sales Tax Rate (2011): 8.25 percent Total FY 2011 Budget Deficit: $17.9 billion, or 20.7 percent of the budget Projected FY 2012 Budget Deficit: $25.4 billion1, or 29.3 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $490,585,000, 81% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -2.2 percent Unemployment Rate (May 2011): 11.7 percent Foreclosure Rate (May 2011): 1 in every 259 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $95.4 billion Stimulus Money Awarded: $30,098,137,607 Example of Stimulus Spending: The National Institute of Health received $823,200 to study the effects of a genital-washing program in Orange Farm, South Africa.


F I S CAL P RO M I S E S G O V. JE RRY B R OW N ( D )

“When dealing with a budget gap in the tens of billions, I must point out that it is far more than waste and inefficiency that we have to take out. Yes, government wastes money—and I will be doing a lot about that.”

COLORADO BU DG E T:

Total State Expenditures (FY 2010 estimated): $29 billion Income Tax Rate (Tax Year 2011): 4.63 percent Sales Tax Rate (2011): 2.9 percent Total FY 2011 Budget Deficit: $1.5 billion, or 21.5 percent of the budget Projected FY 2012 Budget Deficit: $988 million, or 13.8 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $54,536,549, 69% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -0.9 percent Unemployment Rate (May 2011): 8.7 percent Foreclosure Rate (May 2011): 1 in every 518 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $8.9 billion Stimulus Money Awarded: $5,474,644,414


Examples of Stimulus Spending: Colorado liquor distilleries, breweries, and wineries received $5 million in loans. Over a one year period, Colorado spent $247,000 on road signs to designate which construction projects were funded by the stimulus. An effort to prevent the state from posting more signs failed. FI S CAL P RO M I SE S G O V. JO HN H I C KE N L OOPE R ( D )

“We view our task in three parts: making the hard decisions to balance the annual budget; improving how we spend the money we have; and restoring structural balance to our spending and tax rules. We cannot fix all of these items this year or even in this building. But a long-term plan is critical to Colorado’s future.”

CONNECTICUT BU D G E T:

Total State Expenditures (FY 2010 estimated): $26.1 billion Income Tax Rate (Tax Year 2011): 6.5 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $5.1 billion, or 28.8 percent of the budget Projected FY 2012 Budget Deficit: $3.2 billion, or 18 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $41,311,400, 62% funded

E CO NO MY:

Economic Growth (2008 to 2009): -3.1 percent Unemployment Rate (May 2011): 9.1 percent


Foreclosure Rate (May 2011): 1 in every 1,130 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $3.1 billion Stimulus Money Awarded: $2,489,621,777 Examples of Stimulus Spending: The Mohegan Tribe of Indians will get $54 million in rural development loans to build a four-story tribal government center, which will include a new community center and a practice facility for the Connecticut Sun, the state’s WNBA team. Perry Hill School in Shelton received $176,000 for a “green” cooling system even though renovations are $1.5 million over budget and dozens of employees, including 27 teachers, have been laid off. F I S CAL P RO M I S E S G O V. D AN M A L L OY ( D )

“In the coming weeks and months, you will hear a lot about reducing the size of government, from the size of my office, to the number of state agencies. And not just cutting for cutting sake, but re-conceiving government so that better decisions are made and implemented faster.”

DELAWARE BU DG E T:

Total State Expenditures (FY 2010 estimated): $8.7 billion Income Tax Rate (Tax Year 2011): 6.95 percent Sales Tax Rate (2011): No state sales tax Total FY 2011 Budget Deficit:


$377 million, or 11.4 percent of the budget

Projected FY 2012 Budget Deficit: $208 million, or 6.3 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $7,615,166, 94% funded

E CO NO MY:

Economic Growth (2008 to 2009): -1.8 percent Unemployment Rate (May 2011): 8.0 percent Foreclosure Rate (May 2011): 1 in every 609 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $1.6 billion Stimulus Money Awarded: $1,003,466,721 Example of Stimulus Spending: A juice importer received $15.5 million to build new apple juice storage tanks. FI S CAL P RO M I SE S G O V. JACK M A R KE L L ( D )

“[W]hile next year’s budget requires our immediate attention, we must not govern only for the short term. We are here to make our State better for generations to come. Many of the most important budget savings – the type that last – require action this year but will not produce significant savings for the next budget. To reduce the size of government in a thoughtful way, we will look past the next fiscal year.”


FLORIDA BU D G E T:

Total State Expenditures (FY 2010 estimated): $66.5 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $4.7 billion, or 19.5 percent of the budget Projected FY 2012 Budget Deficit: $3.6 billion, or 14.9 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $141,485,280, 84% funded

E CO NO MY:

Economic Growth (2008 to 2009): -3.4 percent Unemployment Rate (May 2011): 10.6 percent Foreclosure Rate (May 2011): 1 in every 461 houses FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $22.7 billion Stimulus Money Awarded: $11,039,520,913 Examples of Stimulus Spending: Florida received $3.4 million to build a tunnel for turtles to pass under a highway. Dry Tortugas National Park received $13.3 million to repair its main above-water attraction, Fort Jefferson, which is located 70 miles off shore, almost entirely underwater, and accessible only by airplane, private boat, or ferry.


FI S CAL P RO M I SE S G O V. RIC K S C OT T ( R )

“[W]e’ve got to reduce state spending and we’ve got to weed out unnecessary regulations that hinder job growth. … I took the first of many steps to reduce government spending by taking steps to sell the two state owned and operated airplanes that currently cost us $2.4 million a year to operate. We are creating the best climate for job creation by making the government smaller and less intrusive.”

GEORGIA BU D G E T:

Total State Expenditures (FY 2010 estimated): $38.6 billion Income Tax Rate (Tax Year 2011): 6 percent Sales Tax Rate (2011): 4 percent Total FY 2011 Budget Deficit: $4.2 billion, or 25.4 percent of the budget Projected FY 2012 Budget Deficit: $1.3 billion, or 7.9 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $79,898,410, 87% funded

E CO NO MY:

Economic Growth (2008 to 2009): -3.1 percent Unemployment Rate (May 2011): 9.8 percent Foreclosure Rate (May 2011): 1 in every 387 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $13.1 billion Stimulus Money Awarded: $6,701,811,083


Example of Stimulus Spending: Atlanta received $47.6 million for a $72 million, 2.62-mile streetcar project in downtown. The Metropolitan Atlanta Rapid Transit Authority already covers the area. F I S CAL P RO M I S E S G O V. NAT HA N D E A L ( R )

“I am proposing that State Agencies reduce their spending on an average of 4 percent. ... We are now entering a new era of smaller government and greater personal responsibility. Government must pull back, but Georgians and our strong communities, big and small, have what it takes to fill the gap. Our State’s fortunes do not rise and fall with the size of government.”

HAWAII BU DG E T :

Total State Expenditures (FY 2010 estimated): $10.9 billion Income Tax Rate (Tax Year 2011): 11 percent Sales Tax Rate (2011): 4 percent Total FY 2011 Budget Deficit: $594 million, or 11.8 percent of the budget Projected FY 2012 Budget Deficit: $410 million, or 8.2 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $16,549,069, 69% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -1.5 percent


Unemployment Rate (May 2011): 6.0 percent Foreclosure Rate (May 2011): 1 in every 573 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $2.4 billion Stimulus Money Awarded: $1,466,657,631 Example of Stimulus Spending: The University of Hawaii received $210,000 to study how honeybees learn. FI S CAL P RO M I SE S G O V. NE IL A B E R C R OM B I E ( D )

“We will forge understandings, develop creative solutions and make changes to the budget in ways that reflect our common values and best serve the people of Hawaii. It won’t be easy. There will be necessary sacrifices that all of us must share to move us all forward.”

IDAHO BU D G E T:

Total State Expenditures (FY 2010 estimated): $7.1 billion Income Tax Rate (Tax Year 2011): 7.8 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $84 million, or 3.5 percent of the budget Projected FY 2012 Budget Deficit: $92 million, or 3.9 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $12,057,500, 74% funded


E C O NO M Y:

Economic Growth (2008 to 2009): -3.1 percent Unemployment Rate (May 2011): 9.4 percent Foreclosure Rate (May 2011): 1 in every 460 houses

F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $3 billion Stimulus Money Awarded: $1,698,994,560 Example of Stimulus Spending: Heyburn State Park rented 540 goats, at a price tag of $4,950, for invasive weed management. F I S CAL P RO M I S E S G O V. BU T CH OT T E R ( R )

“It all begins with us – the individual – and how we decide to fulfill the role of being our brother’s keeper … along with responsibly balancing our budget, there is no task before us more important than improving Idaho’s economy. That does not mean government spending. It means stability. It means predictability. And it means keeping more money in the hands of the people whose innovation and enterprise actually creates those career opportunities.”

ILLINOIS BU DG E T:

Total State Expenditures (FY 2010 estimated): $47.4 billion Income Tax Rate (Tax Year 2011): 5 percent Sales Tax Rate (2011): 6.25 percent


Total FY 2011 Budget Deficit: $13.5 billion, or 40.4 percent of the budget Projected FY 2012 Budget Deficit: $4.9 billion, or 14.6 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $126,435,510, 51% funded

E CO NO MY:

Economic Growth (2008 to 2009): -3.4 percent Unemployment Rate (May 2011): 8.9 percent Foreclosure Rate (May 2011): 1 in every 500 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $14.7 billion Stimulus Money Awarded: $11,522,709,068 Example of Stimulus Spending: Northwestern University received $712,883 to develop a model of machine-generated humor. The project will “create intelligent comedic performance agents and deploy them both on- and off-line for the enjoyment and illumination of everyday citizens.” FI S CAL P RO M I SE S G O V. PAT Q U I N N ( D )

“We will strengthen our economy. We will do that and we will do that very, very soon. I command all of both parties to work together to reach a point where I believe we can enact very quickly a sound budget, a balanced budget, that pays the bills of the stay Illinois, that pays our obligations and also makes sure that our economy is strong for today and in the future.”


INDIANA BU DG E T:

Total State Expenditures (FY 2010 estimated): $26.7 billion Income Tax Rate (Tax Year 2011): 3.4 percent Sales Tax Rate (2011): 7 percent Total FY 2011 Budget Deficit: $1.3 billion, or 9.4 percent of the budget Projected FY 2012 Budget Deficit: $270 million, or 2 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $36,924,845, 67% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -3.6 percent Unemployment Rate (May 2011): 8.2 percent Foreclosure Rate (May 2011): 1 in every 887 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.3 billion Stimulus Money Awarded: $4,559,536,417 Example of Stimulus Spending: The Purdue University Airport in West Lafayette received $665,000 to replace its eight-foot perimeter fence with an 11-foot fence to prevent animal strike incidents. The airport has reported only 14 such incidents since 1990.


FI S CAL P RO M I SE S G O V. MI T C H D A N I E L S ( R )

“We will take the actions necessary to limit state spending to the funds available.  We will protect struggling taxpayers against the additional burden of higher taxes.  We will continue improving our jobs climate by holding the line on taxes as our competitors take the easy way and let theirs rise. We say tonight, whatever course others may choose, here in Indiana we live within our means, we put the private sector ahead of government, the taxpayer ahead of everyone, and we will stay in the black, whatever it takes.”

IOWA BU D G E T:

Total State Expenditures (FY 2010 estimated): $18.5 billion Income Tax Rate (Tax Year 2011): 8.98 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $1.1 billion, or 20.3 percent of the budget Projected FY 2012 Budget Deficit: $186 million, or 3.5 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $26,602,516, 81% funded

E CO NO MY:

Economic Growth (2008 to 2009): -0.2 percent Unemployment Rate (May 2011): 6.0 percent Foreclosure Rate (May 2011): 1 in every 878 houses


FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $6.6 billion Stimulus Money Awarded: $2,157,248,244 Example of Stimulus Spending: Iowa state legislators used $11 million to buy new cars for the state vehicle fleet even though nearly four dozen of the state’s existing cars haven’t even been used. FI S CAL P RO M I S E S G O V. T E RRY B R A N STA D ( R )

“[W]e have too much government—state, county, city, school, local—and it must be reduced. For too long, we have papered over the fact that our appetite for government exceeds our pocket book to pay for it. As my 86-year-old dad, Edward, who is with us today would say, ‘Our eyes are bigger than our wallet.’ Our auditor tells us that at least 15% must be permanently eliminated from government to make our books balance once and for all. And I aim to make sure we do it and do it now. We will all share in the sacrifice, while protecting those who need our help. But we will remove the lead boots of excess government from our economy. And without that burden, we will be able to run like the wind in the race to prosperity.”

KANSAS BU D G E T:

Total State Expenditures (FY 2010 estimated): $14.5 billion


Income Tax Rate (Tax Year 2011): 6.45 percent Sales Tax Rate (2011): 6.3 percent Total FY 2011 Budget Deficit: $510 million, or 9.1 percent of the budget Projected FY 2012 Budget Deficit: $492 million, or 8.8 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $21,138,206, 64% funded

E CO NO MY:

Economic Growth (2008 to 2009): -1.1 percent Unemployment Rate (May 2011): 6.6 percent Foreclosure Rate (May 2011): 1 in every 1,473 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $4.5 billion Stimulus Money Awarded: $2,405,519,187 Example of Stimulus Spending: The Kansas legislature authorized $39.7 million in Build America Bonds for the statehouse renovation, which includes upgraded office space and indoor parking for Kansas politicians. FI S CAL P RO M I SE S G O V. S AM B R OW N B A C K ( R )

“Growing the Kansas economy is my first priority. We must take bold steps today to create economic growth tomorrow. In saying this, however, let me be clear; we cannot government-program or borrow our way into a stronger state economy. We cannot hope for the best and paper over the worst.�


KENTUCKY BU DG E T:

Total State Expenditures (FY 2010 estimated): $25.8 billion Income Tax Rate (Tax Year 2011): 6 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $780 million, or 9.1 percent of the budget Projected FY 2012 Budget Deficit: $780 million2, or 9.1 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $35,686,737, 58% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -1.8 percent Unemployment Rate (May 2011): 9.8 percent Foreclosure Rate (May 2011): 1 in every 1,777 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.5 billion Stimulus Money Awarded: $3,493,455,387 Example of Stimulus Spending: $357,710 was used to repair the Fitchburg Furnace stonework and allow historians to conduct research.


FI S CAL P RO M I SE S G O V. S T E VE B E S H E A R ( D )

“I’ve cut more than a billion dollars in state spending in three years and shrunk the state workforce to the smallest it’s been in a generation. And I’ve balanced this budget eight times without raising any broad-based taxes on Kentucky families and businesses.”

LOUISIANA BU D G E T:

Total State Expenditures (FY 2010 estimated): $29.6 billion Income Tax Rate (Tax Year 2011): 6 percent Sales Tax Rate (2011): 4 percent Total FY 2011 Budget Deficit: $1 billion, or 12.9 percent of the budget Projected FY 2012 Budget Deficit: $1.6 billion, or 20.7 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $39,657,924, 60% funded

E CO NO MY:

Economic Growth (2008 to 2009): 2.5 percent Unemployment Rate (May 2011): 8.2 percent Foreclosure Rate (May 2011): 1 in every 1,070 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $14.8 billion


Stimulus Money Awarded: $3,364,665,037 Example of Stimulus Spending: The city of Shreveport used $1.5 million on mold remediation for a housing complex it was considering for demolition. FI S CAL P RO M I S E S G O V. BO BB Y J I N D A L ( R )

“In Washington, the answer always seems to be more borrowing, more spending, and higher taxes. ... In Louisiana, we’re doing more with less…. By working to right-size state government, we’ve reduced the number of government positions by more than 6,300 since entering office. The budget for the current fiscal year is $4.2 billion less than the last fiscal year … we cannot hide from the challenges we face. That’s why our budget challenges will require sacrifice, and no government agency or program is off limits when it comes to reducing the size of government.”

MAINE BU D G E T :

Total State Expenditures (FY 2010 estimated): $8.3 billion Income Tax Rate (Tax Year 2011): 8.5 percent Sales Tax Rate (2011): 5 percent Total FY 2011 Budget Deficit: $940 million, or 34.7 percent of the budget Projected FY 2012 Budget Deficit: $436 million, or 16.1 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $14,410,000, 73% funded


E CO NO MY:

Economic Growth (2008 to 2009): -1.3 percent Unemployment Rate (May 2011): 7.7 percent Foreclosure Rate (May 2011): 1 in every 2,649 houses FE D E RAL G OV E R N M E N T S PE N D I N G :

Total Federal Funds Received (FY 2010 estimated): $3.2 billion Stimulus Money Awarded: $1,373,641,613 Example of Stimulus Spending: $102 million in funds was used to pay down hospital debt stemming from services provided to Medicaid patients. FI S CAL P RO M I SE S G O V. PAU L L E PA GE ( R )

“The taxpayers tired of footing the bill for a bloated establishment in Augusta. It is time to make state government accountable. It is time to deliver value. It is time to put people first. … While we have a generous spirit in Maine, we do not have limitless resources. Our programs have to be focused on Maine residents, we must make every effort to move people from dependency to self-sufficiency and we must have a tiered system that rewards work and progress.”

MARYLAND BU D G E T:

Total State Expenditures (FY 2010 estimated): $33.4 billion Income Tax Rate (Tax Year 2011): 5.5 percent


Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $2 billion, or 15.3 percent of the budget Projected FY 2012 Budget Deficit: $1.4 billion, or 10.7 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $53,054,565, 65% funded

E CO NO MY:

Economic Growth (2008 to 2009): 0 percent Unemployment Rate (May 2011): 6.8 percent Foreclosure Rate (May 2011): 1 in every 1,301 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $9.8 billion Stimulus Money Awarded: $6,260,568,791 Example of Stimulus Spending: $30,000 has been granted to University of Maryland researchers to study the effects of methamphetamine on the sex drives of female rats. FI S CAL P RO M I SE S G O V. MART I N O’ M A L L E Y ( D )

“With tough but fiscally responsible choices, we cut $5.6 billion in state spending and reduced the size of our government. As we look ahead, we know these next four years will not be easy. Unemployment and foreclosures remain unacceptably high, wages remain stagnant, and our national recovery has only just begun. We have a long way to go. None of us has all the answers, but you and I rightly sense what is at stake right now.”


MASSACHUSETTS BU D G E T:

Total State Expenditures (FY 2010 estimated): $53.4 billion Income Tax Rate (Tax Year 2011): 5.3 percent Sales Tax Rate (2011): 6.25 percent Total FY 2011 Budget Deficit: $2.7 billion, or 8.6 percent of the budget Projected FY 2012 Budget Deficit: $1.8 billion, or 5.7 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $61,140,335, 68% funded

E CO NO MY:

Economic Growth (2008 to 2009): -1.6 percent Unemployment Rate (May 2011): 7.6 percent Foreclosure Rate (May 2011): 1 in every 1,124 houses FE D E RAL G OV E R N M E N T S PE N D I N G :

Total Federal Funds Received (FY 2010 estimated): $5.7 billion Stimulus Money Awarded: $7,050,752,553 Examples of Stimulus Spending: The Federal Emergency Management Agency provided a tour boat company with a $43,214 terrorism prevention grant. The Massachusetts Institute of Technology was awarded $435,271 to develop iPod Touch or smartphone apps to teach introductory biology to high school students.


F I S CAL P RO M I S E S G O V. D E VAL PAT R I C K ( D )

“Our budget reflects the difficult economic times. Already during this recession, we have solved a budget gap of more than $12 billion. That has meant that we have cut many worthy programs and services, eliminated over 2600 state jobs, frozen or cut wages, negotiated concessions from state employee unions, squeezed efficiencies out of every corner of government, and passed important reforms to save millions.”

MICHIGAN BU DG E T:

Total State Expenditures (FY 2010 estimated): $45.7 billion Income Tax Rate (Tax Year 2011): 4.35 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $2 billion, or 9.3 percent of the budget Projected FY 2012 Budget Deficit: $1.3 billion, or 5.9 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $72,911,900, 79% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -5.2 percent Unemployment Rate (May 2011): 10.3 percent Foreclosure Rate (May 2011): 1 in every 311 houses


FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $19.2 billion Stimulus Money Awarded: $8,646,112,562 Examples of Stimulus Spending: $3.8 million was appropriated for the Old Tiger Stadium Conservancy – a group dedicated to finding a new use for the Detroit Tigers’ former stadium. $7.5 million was used to construct a new terminal with stone fireplaces and exposed log beams in a tiny northern Michigan airport. The airport serves an average of only 72 departing passengers a day. FI S CAL P RO M I SE S G O V. RIC K S N Y D E R ( R )

“What we’re talking about today should have happened decades ago, generations ago. It’s absolutely critical that we have transparency and accountability in financial information. … This is not about cutting yourself to prosperity. It’s not the time to cry ... to whine about it. It’s time to go to work.”

MINNESOTA

BU D G E T:

Total State Expenditures (FY 2010 estimated): $31.5 billion Income Tax Rate (Tax Year 2011): 7.85 percent Sales Tax Rate (2011): 6.88 percent Total FY 2011 Budget Deficit: $4 billion, or 25 percent of the budget Projected FY 2012 Budget Deficit: $3.8 billion, or 23.6 percent of the budget


Pension Liability and % of Liability Funded (FY 2009): $60,835,351, 77% funded

E CO NO MY:

Economic Growth (2008 to 2009): -2.3 percent Unemployment Rate (May 2011): 6.6 percent Foreclosure Rate (May 2011): 1 in every 829 houses FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.4 billion Stimulus Money Awarded: $4,027,997,387 Examples of Stimulus Spending: Jefferson Lines received $2.85 million to purchase several new luxury buses. The city of Eagan matched a $1.34 million award for a ground source heat pump system, which will serve the ice rink in the city’s civic arena. FI S CAL P RO M I S E S G O V. MARK D AY T ON ( D F L )

“My second, urgent priority is to clean up the state’s financial mess, a responsibility I will share with the new Legislature and, ultimately, with all of you. Some people think eliminating a $6.2 billion deficit, almost 20% of expected revenues, will be simple and easy. I don’t. As my friend and former colleague, Senator Tom Harkin of Iowa, likes to say, “For every complex problem, there’s almost always a simple solution. And it’s almost always wrong. … My proposed budget solution will be reasonable, balanced – and painful – because I see no easy alternative.”


MISSISSIPPI

BU D G E T:

Total State Expenditures (FY 2010 estimated): $19.4 billion Income Tax Rate (Tax Year 2011): 5 percent Sales Tax Rate (2011): 7 percent Total FY 2011 Budget Deficit: $716 million, or 15.9 percent of the budget Projected FY 2012 Budget Deficit: $634 million, or 14.1 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $31,386,747, 67% funded

E CO NO MY:

Economic Growth (2008 to 2009): -0.9 percent Unemployment Rate (May 2011): 10.3 percent Foreclosure Rate (May 2011): 1 in every 6,930 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $8.8 billion Stimulus Money Awarded: $2,792,833,646 Example of Stimulus Spending: Choctaw Central High School used $190,000 to paint a metal canopy at the school’s baseball field and to repair and replace a retaining wall behind the school’s concession stand.


F I S CAL P RO M I S E S G O V. HAL E Y B A R B OU R ( R )

“Despite the worst recession in generations and a steep drop in revenue, we’ve kept our budget balanced by cutting spending and without depleting all our reserves. ... I realize this is an election year, and every penny of appropriated spending has a constituency. You will get pressure to spend more for this and spend more for that. As Governor I have cut the budget by a total of about $700 million in just the last two years. Just as our constituents have cut back, they expect state government to cut back. They know the alternative is raising taxes, because government has no money except what it takes from taxpayers.”

MISSOURI

BU DG E T:

Total State Expenditures (FY 2010 estimated): $24.8 billion Income Tax Rate (Tax Year 2011): 6 percent Sales Tax Rate (2011): 4.23 percent Total FY 2011 Budget Deficit: $730 million, or 9.4 percent of the budget Projected FY 2012 Budget Deficit: $704 million, or 9.1 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $55,314,996, 79% funded

E C O NO M Y:


Economic Growth (2008 to 2009): -2.2 percent Unemployment Rate (May 2011): 8.9 percent Foreclosure Rate (May 2011): 1 in every 1,037 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $8.7 billion Stimulus Money Awarded: $4,813,473,888 Example of Stimulus Spending: The scientists at the University of Missouri received $180,935 to develop freezing protocols for epididymal rat sperm. FI S CAL P RO M I SE S G O V. JAY N I X ON ( D )

“[I] won’t be satisfied until all Missourians can provide for their families. How will we do it? By fighting hard every day for every job. By making government smarter and more efficient. By investing in strong communities to attract and keep good jobs, and by balancing our budget without raising taxes. ... We will continue to be aggressive and relentless, fighting every day for every job. And we’ll continue to be aggressive and relentless in making government smarter and more efficient. We’ve kept our fiscal house in order with prudent financial controls, rigorous cost reductions, and smarter, more efficient government … fiscal responsibility is a value we share here in the Show-Me State. ... These decisions are never easy, but they are necessary.”


MONTANA

BU D G E T:

Total State Expenditures (FY 2010 estimated): $6 billion Income Tax Rate (Tax Year 2011): 6.9 percent Sales Tax Rate (2011): No state sales tax Total FY 2011 Budget Deficit: No deficit Projected FY 2012 Budget Deficit: No deficit projected Pension Liability and % of Liability Funded (FY 2009): $10,271,027, 74% funded

E CO NO MY:

Economic Growth (2008 to 2009): 0 percent Unemployment Rate (May 2011): 7.3 percent Foreclosure Rate (May 2011): 1 in every 1,919 houses FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $2.9 billion Stimulus Money Awarded: $1,544,976,466 Example of Stimulus Spending: $260,112 went to New York artist Jason Middlebrook to construct a public sculpture outside a not-yet-built federal courthouse in Billings, Montana. FI S CAL P RO M I S E S G O V. BRI AN S C H W E I T ZE R ( D )


“Montana expects us to get a few things and to get them right. First, they expect you, this Legislature, to get a balanced budget back to my office in 90 days. Second, this is important, they expect you to reform a bloated, unworkable workers compensation system that is fair for workers and helps small business start and grow in Montana. Third and this might be your most important task and if you get it right it will create thousands of jobs in Montana, if you get it wrong or you don’t finish it there will be pink slips that go to workers across Montana.”

NEBRASKA

BU D G E T:

Total State Expenditures (FY 2010 estimated): $9.6 billion Income Tax Rate (Tax Year 2011): 6.84 percent Sales Tax Rate (2011): 5.5 percent Total FY 2011 Budget Deficit: $329 million, or 9.7 percent of the budget Projected FY 2012 Budget Deficit: $314 million, or 9.2 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $9,427,370, 88% funded

E CO NO MY:

Economic Growth (2008 to 2009): 0.3 percent Unemployment Rate (May 2011): 4.1 percent Foreclosure Rate (May 2011): 1 in every 2,788 houses


F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $3 billion Stimulus Money Awarded: $1,344,833,653 Example of Stimulus Spending: $7 million in funds is being used to build a bridge in Thedford, a town of 168 residents, to help avoid a 30 second wait at a local train crossing. F I S CAL P RO M I S E S G O V. D AVE H E I N E M A N ( R )

“We wisely built up our cash reserve as a hedge against the slowing national economy. We worked together to control the growth of state spending and to pass balanced budgets without raising taxes. We did this in spite of the fact that revenues in fiscal years 2009 and 2010 were less than fiscal year 2008. Now Nebraska is in better shape than most of America. Together we built a strong foundation for the future because we didn’t spend money we didn’t have and while three-fourths of the states have raised taxes since 2008, Nebraska has not.”

NEVADA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $7.9 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): 6.85 percent Total FY 2011 Budget Deficit: $1.8 billion, or 54.5 percent of the budget Projected FY 2012 Budget Deficit: $1.5 billion, or 45.2 percent of the budget


Pension Liability and % of Liability Funded (FY 2009): $33,148,347, 72% funded

E CO NO MY:

Economic Growth (2008 to 2009): -6.4 percent Unemployment Rate (May 2011): 12.1 percent Foreclosure Rate (May 2011): 1 in every 103 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $2.7 billion Stimulus Money Awarded: $2,215,052,864 Example of Stimulus Spending: $2 million went to a fire station, which doesn’t actually have any firefighters. FI S CAL P RO M I SE S G O V. BRI AN SA N D OVA L ( R )

“I am calling on all branches of government to achieve efficiencies at every turn so that we might spend less and serve more.”

NEW HAMPSHIRE

BU D G E T:

Total State Expenditures (FY 2010 estimated): $5.5 billion Income Tax Rate (Tax Year 2011): State income tax limited to 5 perecent on dividends and interest income only


Sales Tax Rate (2011): No state sales tax Total FY 2011 Budget Deficit: $365 million, or 27.2 percent of the budget Projected FY 2012 Budget Deficit: Size unknown Pension Liability and % of Liability Funded (FY 2009): $8,475,062, 58% funded

E CO NO MY:

Economic Growth (2008 to 2009): -1.2 percent Unemployment Rate (May 2011): 4.8 percent Foreclosure Rate (May 2011): 1 in every 930 houses FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $2.1 billion Stimulus Money Awarded: $978,605,056 Example of Stimulus Spending: $150,045 was used to preserve and resurface a bridge built in 1860 that doesn’t connect to any roads and ends with an eight-foot dropoff. FI S CAL P RO M I S E S G O V. JO HN LY N C H ( D )

“To balance the budget, we must continue assessing how we provide every state government service – and decide what services we should provide. But our reductions should not come at the expense of our most vulnerable citizens. An important part of reaching that goal will be continuing to reform state government and improve efficiency.”


NEW JERSEY:

BU D G E T:

Total State Expenditures (FY 2010 estimated): $49 billion Income Tax Rate (Tax Year 2011): 8.97 percent Sales Tax Rate (2011): 7 percent Total FY 2011 Budget Deficit: $10.7 billion, or 38.2 percent of the budget Projected FY 2012 Budget Deficit: $10.5 billion, or 37.4 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $134,928,225, 66% funded

E CO NO MY:

Economic Growth (2008 to 2009): -2.4 percent Unemployment Rate (May 2011): 9.4 percent Foreclosure Rate (May 2011): 1 in every 3,509 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $14 billion Stimulus Money Awarded: $5,430,131,727 Example of Stimulus Spending: Atlantic city used $276,000 to purchase playground equipment. FI S CAL P RO M I SE S G O V. CHRI S C H R I S T I E ( R )

“When I talk of controlling spending, I am doing it for a reason. I


am not proposing to cut spending just for cutting’s sake. I am fighting this fight because we have to be truthful about what we can’t afford—whether it is health and pension benefits, which are out of line with the rest of the country, or a tunnel, which we can’t pay for. I am asking for shared sacrifice so that when we leave here, New Jersey will be more fiscally sound than when we got here. I am asking for shared sacrifice in cutting what we don’t need so that we can invest in what we absolutely do need.”

NEW MEXICO

BU D G E T:

Total State Expenditures (FY 2010 estimated): $14.4 billion Income Tax Rate (Tax Year 2011): 4.9 percent Sales Tax Rate (2011): 5.13 percent Total FY 2011 Budget Deficit: $333 million, or 6.1 percent of the budget Projected FY 2012 Budget Deficit: $450 million, or 8.3 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $29,003362, 76% funded

E CO NO MY:

Economic Growth (2008 to 2009): -2.2 percent Unemployment Rate (May 2011): 6.9 percent Foreclosure Rate (May 2011): 1 in every 1,394 houses


F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $5.6 billion Stimulus Money Awarded: $2,728,693,953 Example of Stimulus Spending: $212 million will be used to finance a demolition project at the Alamos National Laboratory. F I S CAL P RO M I S E S G O V. S U S AN A M A RT I N E Z ( R )

“We must tell New Mexicans the truth: our financial house is a mess and it’s time we clean it up. ... In the past, New Mexico’s serious budget problems have been papered over with unrealistic projections and temporary infusions of Federal stimulus dollars. This allowed politicians to shirk responsibility and avoid tough decisions. But I am here to tell the people of New Mexico that the days of kicking the can down the road are over. … During difficult economic times, balancing the budget is not easy, but how we choose to go about the task is critical because our budget blueprint is a statement about our values ... the truth is, the waste is there and it must be eliminated …”

NEW YORK

BU DG E T:

Total State Expenditures (FY 2010 estimated): $130.9 billion Income Tax Rate (Tax Year 2011): 8.97 percent Sales Tax Rate (2011): 4 percent


Total FY 2011 Budget Deficit: $8.5 billion, or 15.9 percent of the budget Projected FY 2012 Budget Deficit: $10 billion, or 18.7 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $146,733,000, 101% funded

E CO NO MY:

Economic Growth (2008 to 2009): -4.3 percent Unemployment Rate (May 2011): 7.9 percent Foreclosure Rate (May 2011): 1 in every 3,367 houses FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $44.8 billion Stimulus Money Awarded: $16,062,312,915 Examples of Stimulus Spending: Columbia University received $112,437 to provide summer research opportunities to three high school students and three college students. The Department of Health and Human Services used $25.8 million for a contract with Ketchum, Inc. to help build consumer confidence regarding electronic medical records. FI S CAL P RO M I S E S G O V. AND R E W C U OM O ( D )

“We need to transform our budget…. We need to hold the line on taxes, we need a state-spending cap and we need to close this $10 billion gap without any borrowing. We need to transform the budget process that we use in this state.”


N. CAROLINA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $31.8 billion Income Tax Rate (Tax Year 2011): 7.75 percent Sales Tax Rate (2011): 5.75 percent Total FY 2011 Budget Deficit: $5.8 billion, or 30.6 percent of the budget Projected FY 2012 Budget Deficit: $2.4 billion, or 12.7 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $76,976,542, 97% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -3.2 percent Unemployment Rate (May 2011): 9.7 percent Foreclosure Rate (May 2011): 1 in every 1,584 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.5 billion Stimulus Money Awarded: $7,597,408,120 Examples of Stimulus Spending: The University of North Carolina at Charlotte received $762,372 to create a program called “Dance Draw” where UNCC dance students wear wireless computer mice on their chests and wrists to “draw” abstract geometric shapes on computers.The North Carolina State University Insect Museum, which averages 44 visitors daily, received $253,123.


FI S CAL P RO M I S E S G O V. BE VER LY PE R D U E ( D )

“My short session budget adjustments reflect a state facing continued fiscal challenges. Even as our economy is showing signs of recovery, families across our state still worry about what the future holds. Like businesses and families statewide, North Carolina government is doing what it must do in these tough economic times -- tightening its belt, scrutinizing every expenditure, and taking care of the basics.�

N. DAKOTA

:

BU D G E T:

Total State Expenditures (FY 2010 estimated): $4.7 billion Income Tax Rate (Tax Year 2011): 4.86 percent Sales Tax Rate (2011): 5 percent Total FY 2011 Budget Deficit: No deficit Projected FY 2012 Budget Deficit: No deficit projected Pension Liability and % of Liability Funded (FY 2009): $4,475,800, 81% funded

E CO NO MY:

Economic Growth (2008 to 2009): 3.9 percent Unemployment Rate (May 2011): 3.2 percent Foreclosure Rate (May 2011): 1 in every 9,589 houses


FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $1.8 billion Stimulus Money Awarded: $1,092,718,801 Example of Stimulus Spending: The Audubon National Wildlife refuge received $6.1 million to build a new administration and visitor center. The refuge averages 80 visitors a day. FI S CAL P RO M I SE S G O V. JACK D A L RY M PL E ( R )

“I don’t mean to suggest that we are somehow immune to the nation’s economic woes. It reaches us all, and as a state, we will have 174 million fewer dollars in federal funding in human services alone. But in North Dakota — unlike most other states — we are setting our own course and reaping the rewards of our hard work, our careful fiscal management, our pro-business climate, and our diversified economy.”

OHIO

BU D G E T:

Total State Expenditures (FY 2010 estimated): $57.6 billion Income Tax Rate (Tax Year 2011): 5.925 percent Sales Tax Rate (2011): 5.5 percent Total FY 2011 Budget Deficit: $3 billion3, or 11 percent of the budget Projected FY 2012 Budget Deficit: $3 billion4, or 11 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $171,194,371, 66% funded


E C O NO M Y:

Economic Growth (2008 to 2009): -2.7 percent Unemployment Rate (May 2011): 8.6 percent Foreclosure Rate (May 2011): 1 in every 608 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $13 billion Stimulus Money Awarded: $8,859,793,533 Example of Stimulus Spending: Cincinnati’s John Weld Peck Federal Building received $34 million for a “window makeover.” F I S CAL P RO M I S E S G O V. JO HN KA S I C H ( R )

“First of all, you need to balance a budget and we’re cutting taxes out here. We had a tax cut that went into place on January 1. We will preserve it. We will balance the budget, and we will do it with a reform-oriented restructuring attitude, number one. Number two, regulatory reform. We’re going to get rid of silly rules and regulations, involve the big, you know, the chambers of commerce, the small business community and all of my cabinet directors know, number one, it is jobs. So therefore, eliminate regulations.”

OKLAHOMA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $21.6 billion Income Tax Rate (Tax Year 2011): 5.5 percent


Sales Tax Rate (2011): 4.5 percent Total FY 2011 Budget Deficit: $725 million, or 13.7 percent of the budget Projected FY 2012 Budget Deficit: $500 million, or 9.4 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $34,815,244, 57% funded

E CO NO MY:

Economic Growth (2008 to 2009): 6.6 percent Unemployment Rate (May 2011): 5.3 percent Foreclosure Rate (May 2011): 1 in every 821 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.9 billion Stimulus Money Awarded: $3,190,809,977 Example of Stimulus Spending: The town of Boynton was given $89,298 to replace a quarter-mile stretch of sidewalk that was replaced only five years ago. FI S CAL P RO M I SE S G O V. MARY FA L L I N ( R )

“Our state is now confronting yet another challenging budget year. But with that challenge comes the opportunity to seriously examine how we conduct the people’s business. It is time to ask the probing questions, the “why” questions – why have we done it like this for years and why can’t we consider a different approach – a new approach – a modern approach. And, yes, we must be courageous and willing to move forward each time we find a better way, a better solution for the benefit of the people of Oklahoma. ... My administration will be focused on creating jobs and growing our state economy, not our state government.”


OREGON

BU D G E T:

Total State Expenditures (FY 2010 estimated): $27.9 billion Income Tax Rate (Tax Year 2011): 11 percent Sales Tax Rate (2011): No state sales tax Total FY 2010 and 2011 Budget Deficit: $4.77 billion5 Projected FY 2012 Budget Deficit: $1.8 billion6, or 25 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $56,810,600, 86% funded

E CO NO MY:

Economic Growth (2008 to 2009): -2.4 percent Unemployment Rate (May 2011): 9.3 percent Foreclosure Rate (May 2011): 1 in every 756 houses FE D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $8.3 billion Stimulus Money Awarded: $3,297,752,294 Examples of Sti mulus Spending: Eugene used $78,979 to add a last-minute public art installation to a bridge project. Portland spent $900,000 on new bike signs, despite having similar signs already in place. FI S CAL P RO M I S E S G O V. JO HN KI T ZH A B E R ( D )


“[T]his is the legislative session when we stop kicking the can down the road and start reshaping Oregon’s state government. Instead of creating a budget that does less of the same in the hopes that we will later be able to do more of the same, I will be proposing a budget and structural reforms that will do things differently….”

PENNSYLVANIA

BU D G E T:

Total State Expenditures (FY 2010 estimated): $70.4 billion Income Tax Rate (Tax Year 2011): 3.07 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $4.1 billion, or 16.2 percent of the budget Projected FY 2012 Budget Deficit: $4.2 billion, or 16.4 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $111,317,700, 81% funded

E CO NO MY:

Economic Growth (2008 to 2009): -1 percent Unemployment Rate (May 2011): 7.4 percent Foreclosure Rate (May 2011): 1 in every 1,849 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $29.4 billion Stimulus Money Awarded: $9,467,557,136


Example of Stimulus Spending: A local ice rink received $1 million for refurbishment. F I S CAL P RO M I S E S G O V. T O M C OR B E T T ( R )

“We need good government. The people now demand it. And they deserve it. We will lead the way toward a government that understands that, just as families have found a way to live within their means, it too must budget in a way that is responsible and honest, a government that has the courage to find fiscal strength in restraint, a government that shows compassion for those most in need and recognizes its citizens’ great investment, a government that must yield them a hopeful, realistic return.”

RHODE ISLAND

BU DG E T:

Total State Expenditures (FY 2010 estimated): $8.2 billion Income Tax Rate (Tax Year 2011): 5.99 percent Sales Tax Rate (2011): 7 percent Total FY 2011 Budget Deficit: $395 million, or 13.4 percent of the budget Projected FY 2012 Budget Deficit: $331 million, or 11.3 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $11,500,425, 59% funded


E C O NO M Y:

Economic Growth (2008 to 2009): -1.8 percent

Unemployment Rate (May 2011): 10.9 percent

Foreclosure Rate (May 2011): 1 in every 802 houses

F E D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $3.1 billion Stimulus Money Awarded: $1,191,375,724 Example of Stimulus Spending: $550,000 went to build a skateboard park, tennis courts, and basketball courts in Pawtucket. F I S CAL P RO M I SE S G O V. L I NC OL N C H A F E E ( I )

“Our goal is a budget that provides adequate investments in state services, fosters realistic expectations on the part of taxpayers, and ensures fiscal stability that will allow existing businesses to thrive and attract outside employers to bring good, high-paying jobs to our state. Fiscal stability is essential for job creation and economic growth.�

S. CAROLINA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $22.6 billion Income Tax Rate (Tax Year 2011): 7 percent Sales Tax Rate (2011): 6 percent


Total FY 2011 Budget Deficit: $1.3 billion, or 26.1 percent of the budget Projected FY 2012 Budget Deficit: $877 million, or 17.4 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $42,050,701, 69% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -2.5 percent Unemployment Rate (May 2011): 10.0 percent Foreclosure Rate (May 2011): 1 in every 703 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $10.1 billion Stimulus Money Awarded: $4,637,467,676 Example of Stimulus Spending: The South Carolina Department of Natural Resources received $1.7 million to improve the quality of an oyster habitat.

F I S CAL P RO M I S E S

G O V. NI K K I H A L E Y ( R )

“I believe that in order for the public to trust us, as we make decisions that may be seen by some as unfair or even callous, we must be honest with them: this budget year is going to hurt … we will never again have such an opportunity to reform and correct the spending habits and processes that have brought us to this dire situation. This year has to be the year we make the tough but right decisions so that, going forward, this process doesn’t hurt as much as it does today.”


S. DAKOTA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $3.8 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): 4 percent Total FY 2011 Budget Deficit: $102 million, or 8.8 percent of the budget Projected FY 2012 Budget Deficit: $127 million, or 10.9 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $7,494,895, 92% funded

E C O NO M Y:

Economic Growth (2008 to 2009): 2.2 percent Unemployment Rate (May 2011): 4.8 percent Foreclosure Rate (May 2011): 1 in every 3,974 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $1.7 billion Stimulus Money Awarded: $1,423,716,739 Example of Stimulus Spending: Gavins Point National Fish Hatchery received $20,000 to be spent, in part, on a new freezer to store fish sperm. F I S CAL P RO M I S E S G O V. D E NN I S D A U GA A R D ( R )


“My budget proposal will clearly demonstrate, to you and to the people of South Dakota, that if we truly want to balance our budget without raising taxes, as I do, we must be prepared to make some very difficult decisions. I intend to lead by example. The agencies under the control of the governor will be cut by at least ten percent. The governor’s office will be cut ten percent overall. Every member of my cabinet has agreed to cut his or her salary by at least ten percent. And I will be cutting my own salary by fifteen percent.”

TENNESSE E

BU DG E T:

Total State Expenditures (FY 2010 estimated): $29.1 billion Income Tax Rate (Tax Year 2011): State income tax of 6 percent on dividends and interest income only

Sales Tax Rate (2011): 7 percent Total FY 2011 Budget Deficit: $1 billion, or 9.4 percent of the budget Projected FY 2012 Budget Deficit: Size unknown Pension Liability and % of Liability Funded (FY 2009): $35,198,741, 90% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -3.1 percent Unemployment Rate (May 2011): 9.7 percent Foreclosure Rate (May 2011): 1 in every 1,170 houses


F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $12.9 billion

Stimulus Money Awarded: $5,968,095,821 Example of Stimulus Spending: A $38.6 million construction project on Highway 66 forced businesses to lay off workers and trim operating hours. Rubble and concrete barricades from the project were blocking business doors. F I S CAL P RO M I S E S G O V. BIL L H A S L A M ( R )

“As we slowly reverse the negative trends of the economic downturn that gripped our state and nation, we will be diligent in watching the weight of state government, going on a diet of efficiency and effectiveness. State government will live within its financial means, and a Top to Bottom review will set priorities and establish measurable goals. We face few easy alternatives in closing the budget gap and balancing the budget – difficult choices face us.  We will make the right decisions that point us toward the future – while doing so with a measure of compassion.”

TEXAS

BU DG E T:

Total State Expenditures (FY 2010 estimated): $97.9 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): 6.25 percent Total FY 2011 Budget Deficit: $4.6 billion, or 10.8 percent of the budget


Projected FY 2012 Budget Deficit: $13.4 billion, or 31.5 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $155,679,204, 84% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -1.5 percent Unemployment Rate (May 2011): 8.0 percent Foreclosure Rate (May 2011): 1 in every 1,074 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $38 billion Stimulus Money Awarded: $16,723,827,903 Example of Stimulus Spending: The city of Euless received $454,200 in funds to replace lighting at its Softball World facility.

F I S CAL P RO M I S E S

G O V. RI C K P E R RY ( R )

“[F]or the good of the 25 million pioneers we call Texans, for a people who work hard to get ahead – we must balance our budget without raising their taxes … We will protect them, support them and empower them, but cannot risk the future of millions of taxpayers in the process. We must cut spending to keep our economic engine on track. As legislators do the hard work of trimming agency budgets, the headlines will be dominated by impacted constituencies, but these tough times dictate government doing more with less. If we cannot exercise fiscal discipline in governing Texas, I doubt it can be achieved anywhere least of all in Washington.”


UTAH

BU D G E T:

Total State Expenditures (FY 2010 estimated): $12.9 billion Income Tax Rate (Tax Year 2011): 5 percent Sales Tax Rate (2011): 5.95 percent Total FY 2011 Budget Deficit: $700 million, or 14.7 percent of the budget Projected FY 2012 Budget Deficit: $390 million, or 8.2 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $24,299,183, 86% funded

E CO NO MY:

Economic Growth (2008 to 2009): -0.9 percent Unemployment Rate (May 2011): 7.3 percent Foreclosure Rate (May 2011): 1 in every 365 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $3.7 billion Stimulus Money Awarded: $2,219,016,692 Example of Stimulus Spending: Salt Lake City will use $1 million to give iPod Touches to 1,600 students at Kearns High School. FI S CAL P RO M I SE S G O V. G ARY H E R B E RT ( R )

“As a state, we will continue to make government more responsive,


more efficient and more taxpayer friendly … as a state, we will do all that we can to support and keep our focus on the private sector to promote economic expansion and job creation. And let me underscore: America’s traditional system of free enterprise is the only means to long-term job security and economic prosperity … Utah has demonstrated the innovation, the fiscal restraint and the problem-solving skills that can play an important role in providing solutions to the problems that confront America. And, as we lead by example, we will continue to exercise fiscal responsibility and budget discipline.”

VERMONT

BU DG E T:

Total State Expenditures (FY 2010 estimated): $5.8 billion Income Tax Rate (Tax Year 2011): 8.95 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $338 million, or 31.3 percent of the budget Projected FY 2012 Budget Deficit: $176 million, or 16.3 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $4,012,955, 73% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -0.7 percent Unemployment Rate (May 2011): 5.4 percent Foreclosure Rate (May 2011): 1 in every 39,281 houses


FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $1.8 billion Stimulus Money Awarded: $992,821,539 Example of Stimulus Spending: Mt. Snow received $25 million to replace chairlifts, construct a 120-million-gallon storage pond for snowmaking, and install additional snowmaking guns.

FI S CAL P RO M I SE S

G O V. P E T E R S H U M L I N ( D )

“I stand here today to present a budget that is as sobering as it is necessary, matching state spending with our state revenues, in keeping with the long tradition of frugality and common sense that is the lifeblood of Vermonters. My budget puts Vermont on a solid and sustainable path to fiscal responsibility. Facing our fourth consecutive year of budget shortfalls, I am committed to making the painful choices today that will help ensure that we are not back here next year making drastic cuts.�

VIRGINIA

BU D G E T:

Total State Expenditures (FY 2010 estimated): $40.8 billion Income Tax Rate (Tax Year 2011): 5.75 percent Sales Tax Rate (2011): 5 percent Total FY 2011 Budget Deficit: $1.3 billion, or 8.5 percent of the budget


Projected FY 2012 Budget Deficit: $2 billion7, or 13.1 percent of the budget Pension Liability and % of Liability Funded (FY 2009): $69,135,000, 80% funded

E C O NO M Y:

Economic Growth (2008 to 2009): 0.2 percent Unemployment Rate (May 2011): 6.0 percent Foreclosure Rate (May 2011): 1 in every 766 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $9.3 billion Stimulus Money Awarded: $6,179,530,415 Example of Stimulus Spending: $98,000 was allotted to develop a walking tour of the town of Boydton, which is less than one square mile.

F I S CAL P RO M I S E S

G O V. BO B M C D ON N E L L ( R )

“We will also continue our efforts to fundamentally reform and restructure Virginia’s state government. Over the past three years we have cut billions from our state budget. Our budget had nearly doubled in a decade, growing 28% faster than the growth in population and inflation. When we make government smaller and smarter, we make our economy stronger. Just like families and businesses regularly do, we must look at what doesn’t work well and what wastes money, and fix it.”


WASHINGTON

BU D G E T:

Total State Expenditures (FY 2010 estimated): $32.5 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): 6.5 percent Total FY 2011 Budget Deficit: $3.5 billion, or 22.5 percent of the budget Projected FY 2012 Budget Deficit: $2.5 billion, or 16.2 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $57,754,700, 99% funded

E CO NO MY:

Economic Growth (2008 to 2009): -0.7 percent Unemployment Rate (May 2011): 9.1 percent Foreclosure Rate (May 2011): 1 in every 781 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $8.7 billion Stimulus Money Awarded: $8,244,555,200 Examples of Stimulus Spending: The Puget Sound Regional Council spent $260,000 building a pedestrian bridge across the North Creek, just 20 paces from an existing sidewalk that crosses the river. $10,000 was used to purchase “fish art” for the beautification of Canal Drive’s median.


F I S CAL P RO M I S E S GOV. C HRIS T INE GR E GOI R E ( D )

“We need to use this economic crisis to get control of spending in two critical areas — pensions and health care costs. In the past decade our health care costs doubled to more than $5 billion. In the next biennium alone our pension costs will double. Every dollar we spend on health care and pensions means we have one fewer dollar to educate our children.”

WEST VIRGINIA

BU DG E T:

Total State Expenditures (FY 2010 estimated): $20.2 billion Income Tax Rate (Tax Year 2011): 6.5 percent Sales Tax Rate (2011): 6 percent Total FY 2011 Budget Deficit: $134 million, or 3.6 percent of the budget Projected FY 2012 Budget Deficit: No deficit projected Pension Liability and % of Liability Funded (FY 2009): $14,266,419, 56% funded

E C O NO M Y:

Economic Growth (2008 to 2009): 0.7 percent Unemployment Rate (May 2011): 8.6 percent Foreclosure Rate (May 2011): 1 in every 8,052 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $4.4 billion


Stimulus Money Awarded: $1,841,687,846 Example of Stimulus Spending: The Army Corps of Engineers will spend $650,000 to have an Ohio-based company, Air Maids LLC, clean bathrooms, offices, and campgrounds at Burnsville Dam.

F I S CAL P RO M I S E S

G O V. E ARL R AY T OM B L I N ( D )

“In all of my years in the Senate, I am most proud of the fact that we always kept a watchful and cautious eye over the State’s finances. In acting as Governor, I pledge to continue to do so.”

WISCONSIN

BU DG E T:

Total State Expenditures (FY 2010 estimated): $40.1 billion Income Tax Rate (Tax Year 2011): 7.75 percent Sales Tax Rate (2011): 5 percent Total FY 2011 Budget Deficit: $3.4 billion, or 23.9 percent of the budget Projected FY 2012 Budget Deficit: $1.8 billion, or 12.8 percent of the budget

Pension Liability and % of Liability Funded (FY 2009): $79,104,600, 100% funded

E C O NO M Y:

Economic Growth (2008 to 2009): -2.1 percent


Unemployment Rate (May 2011): 7.4 percent Foreclosure Rate (May 2011): 1 in every 555 houses F E D E RAL G OV E R N M E N T SPE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $11.5 billion Stimulus Money Awarded: $4,081,659,780 Examples of Stimulus Spending: The village of Twin Lakes received $899,853 to implement a “streetscaping” project. A nursing home in Chetek received $2.8 million for renovations. The nursing home was already on track to receive funding from the USDA. F I S CAL P RO M I S E S G O V. S CO T T WA L KE R ( R )

“Creating a more vibrant economy; however, will not happen without a return to frugality in government – returning to our fundamental constitutional principles. Soon, we will lay out our plans for the next state budget and we will successfully tackle the three billion dollar deficit. We will do it without raids on segregated funds, or excessive borrowing. Let me be clear on one thing: Increasing taxes is off the table—as it will counter our efforts to provide economic growth. Instead, we will make tough, but compassionate decisions to balance the next state budget in a way that will get Wisconsin working again.”


WYOMING

BU D G E T:

Total State Expenditures (FY 2010 estimated): $7.7 billion Income Tax Rate (Tax Year 2011): No state income tax Sales Tax Rate (2011): 4 percent Total FY 2011 Budget Deficit: $147 million, or 10.3 percent of the budget Projected FY 2012 Budget Deficit: No deficit projected Pension Liability and % of Liability Funded (FY 2009): $7,401,614, 89% funded

E CO NO MY:

Economic Growth (2008 to 2009): 5.4 percent Unemployment Rate (May 2011): 6.0 percent Foreclosure Rate (May 2011): 1 in every 2,331 houses FE D E RAL G OV E R N M E N T S PE N D I N G:

Total Federal Funds Received (FY 2010 estimated): $1.4 billion Stimulus Money Awarded: $658,542,993 Example of Stimulus Spending: $140 million was awarded to Wyoming for road and bridge projects. Half of the money was awarded to out-of-state contractors, who underbid local companies.


F I S CAL P RO M I S E S G O V. M AT T M E A D ( R )

“With our communities still feeling the effects of the economic downturn, we need to provide an additional source of revenue to our cities, towns and counties. It is good that we do not face a repeat of last year’s fiscal austerity — with 10 percent budget cuts and revenue shortfalls that affected everyone in the chain — from the state on down. It is good that we have an unexpected amount of money for a supplemental budget. But, the last few years have provided a wake-up call. We need responsible growth, growth that’s right for the times and our needs, growth that does not compromise our values.”


For more information on the facts that affect your pocketbook, visit us at: thepublicnotice.org [published June, 2011]


Budget Briefing Booklet, Volume 2