political economy

Gov. John Baldacci ordered Maine state departments Friday to curtail spending by $63 million to make sure the budget is balanced. Baldacci issued the order for the fiscal year ending in mid-2010 as preliminary estimates showed an approaching shortfall in the two-year $5.8 billion budget of $400 million, or nearly 7 percent. Education and Health and Human Services are the hardest-hit departments, accounting for about 80 percent of the cuts.

It's clear now that we will have to do even more   -John Baldacci

 

Arizona legislators are still struggling to conclude their special session on the state's budget troubles but already are working on ideas for another one that could be held in December to do more to close the $2 billion shortfall. More spending cuts and borrowing could be under consideration, as well as Gov. Jan Brewer's desire for a temporary sales tax increase and still-developing economic recovery proposals.

If we try to do it all at once, we just have sticker shock   -Bob Burns

 

New York's stable credit rating could be hurt if the Legislature fails to heed Gov. David Paterson's calls to cut spending and eliminate a $3.2 billion deficit, Moody's Investors Service said Friday. The warning by the credit-analysis firm came as Paterson and lawmakers continued to negotiate how to address the deepening budget gap, an issue they have been discussing since September. At issue are Paterson's proposed cuts to school aid and health care, two issues protected by powerful lobbyists who pro

I didn't cut school aid   -David Paterson

 

WEST LAFAYETTE, Ind. Purdue University officials are looking for long-term ways to save money because the school could be $70 million short over the next two-year budget cycle. Budgets are already set for this fiscal year and the next. But Purdue says it could be $70 million short over the next biennium if state appropriations stay flat and there is no tuition increase.  

Emphasizing that government stimulus spending is a temporary measure, federal Finance Minister Jim Flaherty says the Conservative government doesn't plan to undertake major new spending initiatives in next year's budget. Rather, it will continue with the $61 billion in spending announced last January. "In preparing next year's budget, I have no doubt our government will hear calls to change course. This short-sightedness completely overlooks everything our sound plan has achieved so far," Flaherty sai

In preparing next year's budget, I have no doubt our government will hear calls to change course. This short-sightedness completely overlooks everything our sound plan has achieved so far   -Jim Flaherty

 

CHARLESTON, W.Va. West Virginia's tax modernization project is back on, but that doesn't mean businesses and individuals should necessarily expect lower taxes in the near future. "Tax modernization does not always mean tax cuts," said Tax Commissioner Christopher Morris, chairman of a work group appointed by Gov. Joe Manchin to propose ways of making the state's tax system more efficient. A report by a similar group in 2006 led to the elimination or reduction of several business taxes and a new tax cr

There's a lot of work still to be done that can't be achieved with this turnaround time   -Christopher Morris

 

City council wielded a big 2010 budget axe yesterday, hacking a proposed 6.5% tax increase to 2.8%. That number could change because at least one potential big-ticket item still has to be debated, but right now, a 2.8% tax hike will cost those who own a home worth $277,000 an additional $60 next year. That compares to the $140 cost of a 6.5% increase.

It's always good news (lowering the increase) but in some ways it's not good. It's a mixed blessing. There are people concerned they're going to see costs down the road   -Dwight Logan

 

Maharashtra, one of the leading states in service tax collection with Rs 20,337 crore mop-up in 2007-08, has made a strong pitch for full GST rollout rather than half-hearted efforts. The state government, which has been engaged in the formulation of the GST road map, has appealed to the Centre to address issues related to separation of services, goods, the tax threshold level, two-rate structure and dual authority for each dealer. The government also sought the Centre's intervention to settle the content  

The city budget for 2010 that the Marysville City Council adopted on Nov. 16 represents a reduction of 2009's revised spending levels, in spite of the annexation which will add approximately 20,000 residents to Marysville's existing population of more than 37,000 effective Dec. 30. During the Nov. 16 City Council meeting, Council member Carmen Rasmussen said that the decline in sales tax revenue means "it's more important than ever" for Marysville residents to spend their dollars in the city to build its