Thursday, July 14, 2011

Legislators Cut Budgets and Labor Costs

The 2010 election shifted eleven legislatures from Democratic control to either Republican or split between the parties.  Republicans now control 25 – the most in five decades – to 16 for Democrats, down from 27.

That shift, rise of the Tea Party and continuing concern about the states’ impact on job creation has stepped up the effort around the country to cut state labor costs and budgets rather than raise taxes and other revenue schemes of the past.

In the west, there is the usual distribution of parties among the states, with Republicans controlling most legislatures in more conservative states and Democrats in control in the more liberal states.

Most intermountain western states are frugal as a political culture and western states in general have balanced budget amendments.  Even California was able to pass a balanced budget (with some rosy assumptions) in time for the first time in many years.

See Wall Street Journal article:  Higher taxes yield to budget cuts in states

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