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Accountability

Sinkhole States

Truth in Accounting, states, debt,

What do citizens lack most at all levels of government? Truth in accounting. 

So Sheila Weinberg really has her work cut out. This very morning, her Chicago-based research-tank called, not coincidentally, Truth in Accounting released its annual Financial State of the States report. The new data shows that “the total debt among the 50 states decreased by $62.6 billion in FY 2018 due to a prosperous economy.”

But that’s where the good news ends. “Every state, except for Vermont, has balanced budget requirements,” notes the report, “yet even with these rules in place, states have accumulated more than $1.5 trillion in debt.”

Almost entirely from unfunded pension and employee benefit liabilities. 

“At the end of the fiscal year (FY) 2018, 40 states did not have enough money to pay all of their bills. This means that to balance the budget . . . elected officials have not included the true costs of the government in their budget calculations and have pushed costs onto future taxpayers.”

Put another way: Your government is lying to you.

One interesting feature of the analysis is its top five “Sunshine States” —

  1. Alaska
  2. North Dakota
  3. Wyoming 
  4. Utah
  5. Idaho 

— and its bottom five “Sinkhole States” — 

  1. Hawaii
  2. Massachusetts
  3. Connecticut
  4. Illinois
  5. New Jersey

Fun fact: It just so happens that all five of the top states have a statewide process of voter initiative and referendum, while none of the “sinkhole states” have this democratic check. 

The new online State Data Lab has the skinny on every state. Compare your state against the rest. 

Be brave.

This is Common Sense. I’m Paul Jacob.

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Truth in Accounting, states, debt,

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Will Feds Foil Foolish Licensing?

Marco Rubio, Elizabeth Warren, student, loan, debt, Florida, federalism, states, federal, law, college loan

It would be nice if the federal government used its often-abused authority over state and local governments to outlaw various forms of state and local oppression.

In his book Leviathan: The Growth of Local Government and the Erosion of Liberty, Clint Bolick argues that the federal government is not alone in hugely violating individual rights. Eminent domain, asset forfeiture, zoning, and occupational licensing are among the modes of sub-federal assault on the innocent. Even as policymakers in various regions of the land act to stop the worst of these abuses, they proceed unchecked elsewhere.

U.S. Senators Marco Rubio and Democrat Elizabeth Warren are the unlikely duo who may interrupt the now-common practice of depriving delinquent borrowers of student loans of their right to earn a living from certain trades. Rubio recently admitted on Twitter that as a Florida lawmaker, he once voted to allow the state “to suspend professional licenses of those who defaulted on student loans. I WAS WRONG. . . . How can they pay back if they can’t work?”

Yes, Rubio was wrong.

Senator Warren, for her part, agrees that the practice is “wrong and counterproductive.”

The bi-partisan duo’s bill would prohibit states from denying driver’s licenses and occupational licenses to borrowers who default on student loans.

I don’t think the legislation goes as far as it should, even in the delimited area of occupational licensing. The absurdities of occupational licensing go way beyond the scope of the proposed remedy.

But it’s a start.

This is Common Sense. I’m Paul Jacob.

 

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Photos by Gage Skidmore and Edward Kimmel