Creative Budget Balancing

Written by Nickel - 6 Comments

 Stumble It!  Digg It!  Tip It!  del.ico.us  Facebook

States across the country are hurting. High unemployment numbers and reduced corporate profits have gutted tax revenue. At the same time, every state besides Vermont has a law requiring a balanced budget. As such, state governments are getting desperate to make ends meet.

A recent article in Forbes highlighted the lengths to which some states are going. They’ve been slashing budgets to the bone, but you can only cut so deep without compromising basic services. Thus, they’ve gotten creative when it comes to generating revenue.

Here are some of my favorites:

  • California has proposed changing the date on state paychecks from June 30th to July 1st to “save” $1.2B (on paper) during the current fiscal year. It’s unclear what would happen next next fiscal year, when that $1.2B hits the balance sheets.
  • Georgia lawmakers have proposed a “pole tax” — a $5 fee levied on strip club patrons. It didn’t pass.
  • New York has proposed to put ads on garbage trucks and to institute an 18% tax on “sugary” drinks. The governor has approved a 46% increased in tobacco taxes and a 58% increase in wine taxes.
  • An Oregon lawmaker proposed a $98 per ounce tax on medical marijuana, and even pushed to have the state do the growing. These measures never made it out of committee.
  • A Michigan Senator introduced a bill to levy a $250 fee on strippers. The state might also agree to house California prisoners to make extra money, though it’s unclear to me how California would be able to pay.
  • Nevada increased hotel taxes from 9% to 12%, and a Senator from Las Vegas has proposed a $5 tax on prostitute tricks. The latter measure didn’t pass. Even if it had, I’d think it would pretty tough to enforce.

Now… Just imagine what this list would look like if the Federal government wasn’t allowed to run a deficit!

Source: Forbes.com

Published on July 24th, 2009 - 6 Comments
Filed under: Economy, Taxes
email this article email this article - bookmark it

About the author: Nickel is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Related articles...

» Money Poll #10 (Checkbook Balancing) Results
» Money Poll #10: Checkbook Balancing
» Creative Use of Your Flexible Spending Account
» One Year Ago This Week (September 10th – September 16th)
» Obsessive Compulsive Checkbook Balancing
» Budgeting Poll Results
» How to Plan a Wedding Without Breaking Your Budget
» Weekly Roundup – 03/10/06

Was this article useful? Please sign up to receive our content via e-mail:

You will receive only the daily updates, and can unsubscribe at anytime.

Comments (scroll down to add your own):

  1. “California has proposed changing the date on state paychecks from June 30th to July 1st to “save” $1.2B (on paper) during the current fiscal year. It’s unclear what would happen next next fiscal year, when that $1.2B hits the balance sheets. ”

    A more logical solution would be to *require* direct deposit. Meh, I know logic doesn’t come into play with gov’t =P

    Comment by Jeremy Olexa — Jul 24th 2009 @ 10:09 am

  2. Now… Just imagine what this list would look like if the Federal government wasn’t allowed to run a deficit!

    Indeed. Now imagine how much better things would be if the Federal government lived within its Constitutional charter.

    Comment by Daniel — Jul 24th 2009 @ 12:57 pm

  3. I like the ads on garbage tracks idea. The government can follow and put ads on USPS tracks. Honest business income that doesn’t require new taxes or cuts.

    Other ideas:
    - legalize prostitution, charge license fees and taxes. Savings on enforcement as well as extra income.

    - beg for money; organize “help California” campaign.

    I wonder how long it’ll take before California decides to legalize marijuana… I heard some people were selling California IOU at a discount on craigslist and ebay.

    About Federal Government. Unlike states they have a huge advantage – access to the printing press.

    Comment by kitty — Jul 24th 2009 @ 9:13 pm

  4. I would believe anything these days . . .

    There has also been much written about towns increasing tickets written to raise revenues . . .

    If these jokers got as creative about cutting spending . . . we would be set!

    Comment by DDFD at DivorcedDadFrugalDad — Jul 27th 2009 @ 9:13 am

  5. At least California is paying 3.85% interest on their IOU! :)

    Rgds,

    RB

    Rich By 30 Retire By 40

    Comment by RB @ RichBy30RetireBy40 — Jul 28th 2009 @ 1:42 am

  6. Nevada has legalized prostitution, so taxing tricks is no more (or less) difficult to enforce than any other sales tax.

    Comment by Txgal — Aug 3rd 2009 @ 9:24 am

Leave a comment

Subscribe without commenting

« Borrowing From Big Banks – A Moral Issue?

  2. < $10,000
 

Great deals...

Readers’ choice...

Recent articles...

Recent comments...

Most talked about...

Disclaimer...

The terms of third-party offers referenced on this website are subject to change without notice. While we strive to maintain timely and accurate information, offer details may be out of date. Visitors should thus verify the terms of any such offers prior to participating in them. Please see our terms of service for additional details.