Originally Posted by bill_mchale
Obviously the solution is that during times when they have excess income they should stash some of the excess a way so that they can build up a cushion for future down turns. The problem is very few people like those solutions.
If every state would do that with, say ~3yrs worth of operating funds, I bet the economy would never have another down turn like we see now.
Here is California the deficit we have is actually about equal to the whole energy scam that happened a few years back...counting for inflation and interest on that original, I think it was $5 BILLION, in over charges and such it works out to pretty much the current deficit...and of course we never got any of that $5B back.
So, yup, your idea makes too much sense to work as a hedge against any number of problems. Also, i have a sense that many states might actually regulate and cap the total amount of funds that can be held in reserve.
Also, like SS funds (as I recall, those funds were never supposed to be touched for anything but SS...
), you KNOW eventually someone will find a way to access any reserves "to save the children"....