FROM Nicholas Johnson
Will the Recession Push State Governments to Shut Down? The recession is wreaking havoc with state governments all over the country by vastly reducing the revenues they depend on from taxes on property, sales and income. Last night, Illinois, Pennsylvania, Connecticut , North Carolina , Ohio and California failed to pass balanced budgets by the start of the fiscal year.
Will the Recession Force State Government Shutdowns? States all over the country are losing revenue. Last night, North Carolina and five other states failed to resolve disputes over taxes and spending in time for the start of the new fiscal year. Without balanced budgets, Pennsylvania and Illinois face partial shutdowns; Connecticut and Ohio are barely limping along. California has run out of money, and the biggest state in the union plans to pay its bills with IOU’s starting tomorrow. Last night in Sacramento, Republican Governor Arnold Schwarzenegger made a $24 billion shortfall $3 billion worse by blocking a stop-gap agreement with Democrats. What are the consequences for education, medical care and public health? Or is it a blessing in disguise if it forces fiscal responsibility on state capitols?
The airline electronics ban and what it means President Trump's Department of Homeland Security has banned all electronic devices larger than cell phones on some foreign airlines flying direct to the US. It's causing confusion as well as inconvenience. Is the motive really just increased security?
CBO: Under GOP plan, millions will lose coverage Republicans are divided and Democrats are saying, "we told you so," when it comes to official estimates of what it will cost to repeal and replace Obamacare. The Trump White House says the Congressional Budget Office is just wrong.