This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

GAO Report Shows Day Of Fiscal Reckoning Is Near; States Must Take Swift Action

ALEXANDRIA, Va., May 2, 2013 /PRNewswire-USNewswire/ -- Bob Williams, President of State Budget Solutions (SBS), a national nonprofit organization advocating for fundamental reform of state budgets and pensions, released the following statement regarding the recent report by the Government Accountability Office (GAO) "State and Local Governments Fiscal Outlook." The GAO found that closing the fiscal gap in the state and local government sector would require action to be taken today and maintained for each year equivalent to a 14.2 percent reduction in the state and local government sector's current expenditures or an equivalent 14.2 percent increase in taxes.

"We have long said that lawmakers' approaches to drafting state budgets only put states closer to the financial cliff, and the recent GAO report illustrates just how close states are to going over the edge. The Day of Reckoning is swiftly approaching," said Williams.

Williams explained, "The GAO report explains that the financial problems can be attributed to two main factors: by the rising health-related costs of state and local expenditures on Medicaid and the cost of pensions and health care compensation for state and local government employees and retirees. Before agreeing to expand Medicaid, state lawmakers must first carefully consider the exorbitant costs that could accompany such a decision. Federal dollars will eventually dry up. Lawmakers must also reform pensions and consider defined contribution plans that will protect citizens and retirees."

"One solution that can address and fix state budget shortfalls is the budgeting approach known as performance based budgeting. Performance based budgeting focuses on what taxpayers are getting for the money being spent on services right now. It ensures that state government is serving its citizens as efficiently and effectively as possible, and that the state spends only the money that it has and does not kick the can down the road to future generations," Williams said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 -1.15%
FB $118.00 1.10%
GOOG $693.01 0.29%
TSLA $240.76 -2.81%
YHOO $36.60 0.03%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs