Problem:
Crippled State Economies
It’s pretty clear that state and local governments are experiencing record funding shortages due to the financial collapse. Critical public services, and the employees that administer them are being slashed while taxes and fees are increasing for all of us.
State revenues have decreased an average of nearly 10% compared to pre-recession levels. States have already have had to deal with over $430 Billion in budget shortfalls during the fiscal years 2009-2011 through a mix of spending cuts, tapping into reserves, stand tax and fee hikes. State budgets are still troubled and currently face an additional $103 Billion in budget shortfalls for FY 2012.
What’s not so well known, is that big banks who provided loans to state and local governments are still forcing them to pay interest on the toxic bonds they issued in recent years.
It’s pretty clear that state and local governments are experiencing record funding shortages due to the financial collapse. Critical public services, and the employees that administer them are being slashed while taxes and fees are increasing for all of us.
State revenues have decreased an average of nearly 10% compared to pre-recession levels. States have already have had to deal with over $430 Billion in budget shortfalls during the fiscal years 2009-2011 through a mix of spending cuts, tapping into reserves, stand tax and fee hikes. State budgets are still troubled and currently face an additional $103 Billion in budget shortfalls for FY 2012.
What’s not so well known, is that big banks who provided loans to state and local governments are still forcing them to pay interest on the toxic bonds they issued in recent years.
Solution:
Big Banks: Donate Your Bonuses!
Our state budget deficits could be wiped out if the big banks gave their total bonus packages -- estimated to be about $140 BILLION back to our states.
As for the toxic bonds that big banks are still trying to collect interest on from state and local governments, big banks should:
Our state budget deficits could be wiped out if the big banks gave their total bonus packages -- estimated to be about $140 BILLION back to our states.
As for the toxic bonds that big banks are still trying to collect interest on from state and local governments, big banks should:
- Provide state and local government the same low-interest short-term loans that they are getting from the federal government.
- Terminate without fees any interest-rate swap agreement with a state or local government that wants to get out of the agreement.
