Experts: Michigan Not Ready for Next Recession

[313WX]

Thoughts?

Municipalities’ fiscal outlook gloomy despite economy


http://www.detroitnews.com/story/new...oes/100813386/

...Despite continued job growth and record auto sales, the state’s per-capita personal income lags the national average after a long-lasting downturn. Taxable values of property — which largely determine revenue for local governments — are below peak levels in 85 percent of municipalities, according to the nonpartisan Citizens Research Council. And their other major revenue source, state aid, is down 20 percent from 15 years ago.

“It’s really a story of fiscal stress,” Jeff Guilfoyle, a vice president of Lansing-based Public Sector Consultants, said this past week at a “fiscal stability” summit hosted by Business Leaders for Michigan, a group of executives at the state’s largest companies and universities. “That fiscal stress is worse in cities than it is in townships and it’s worse in southeast Michigan than it is in the rest of the state.”

Bigger, old cities especially have been thumped with a combination of state revenue-sharing cuts, substantial property tax declines and heavy unfunded retiree pension and health care obligations, Guilfoyle said.

“It’s only a matter of time before the next recession, and we really haven’t seen a significant improvement in the fiscal health of these cities,” he said...

[Jimaz]

"We’ve got to rethink how we do this so that we share in a prosperous economy.”

Yet other proposed solutions mentioned in the article are austerity measures like cutting pensions, etc.

Isn't that the exact opposite of sharing?

This has become such a blatantly Orwellian world.

[Bong-Man]

Hey, I got an idea. How about we totally eliminate State taxes on just about everything. According to my State Moron Jack Brandenburg, that's sure to help.

[313WX]

"We’ve got to rethink how we do this so that we share in a prosperous economy.”

Yet other proposed solutions mentioned in the article are austerity measures like cutting pensions, etc.

Isn't that the exact opposite of sharing?

This has become such a blatantly Orwellian world.

Didn't you know?

The "we’ve got to rethink how we do this so that we share in a prosperous economy" bullcrap is essentially a fancy way of saying we socialize the losses and privatize the gains.

[Jimaz]

... a fancy way of saying we socialize the losses and privatize the gains.

I recognize the false dichotomy between "socialize the losses and privatize the gains" and "share in a prosperous economy."

The true dichotomy would be between "socialize the losses and privatize the gains" and "socialize the gains and privatize the losses." But whenever the latter comes up we start hearing the "sharing" sermon instead.

No. Sorry. "Socializing the gains" is the very definition of "sharing."

A sincere thanks for raising the issue, 313WX.

[Bobl]

Hey, I got an idea. How about we totally eliminate State taxes on just about everything. According to my State Moron Jack Brandenburg, that's sure to help.

Ha! You are correct, of course, but I thank you for the laugh.