Ear to the Ground - State News Roundup

President-elect Barack Obama met with 48 current and incoming governors in Pennsylvania today. Salivating and licking their lips at the prospect of unlimited Federal cash to bail them out of the catastrophes caused by their bungling financial mismanagement and chronic overspending, it is clear that so many state governors using this opportunity to increase the size of their budgets, increase By crying 'financial crisis', all they are doing is seeking flimsy excuses to expand their power and increase the size of government. This is not just having your snout in the trough. It is having your two front trotters in as well.

In a funny coincidence, whilst all the Pennsylvania media were focusing on the Obama visit, the Pennsylvania Turnpike Commission today quietly released details of a 25% hike in the Turnpike toll.

Idaho Gov. Butch Otter unleashed a plan to hurt working families, shut down businesses, and drive people out of state through raising the gas tax, increasing car and truck registration fees, and taxing rental cars.

North Dakota Governor John Hoeven proposed a $7.7 billion budget to lawmakers on Wednesday, including $2.7 billion in general fund spending, emphasizing a boost in education spending, $400 million in tax relief and building a "healthy" reserve. Whilst the tax cuts, which have $300 million going to property tax reductions and $100 million to income tax relief, are commendable, a 9% annual increase in state spending is not. Whilst North Dakota currently enjoys a healthy financial position, unless spending is reigned in - not expanded - this shall not be the case for much longer, especially in light of plunging commodity prices which have lined state coffers in recent years..

Good news from Wyoming where Gov. Dave Freudenthal released a statement asking residents to urge their state lawmakers -- some of whom campaigned on tax relief -- to reactivate the homestead property tax exemption. Although its somewhat disappointing that Freudenthal opted to cap eligibility at a home value of $237,000, it is still welcome tax relief for many Wyoming residents. Now to expand it!

In yet another broken promise, New York Governor Paterson (who previously pledged promised not to raise taxes) yesterday proposed slapping tolls on currently free East River and Harlem River bridges, and taxing corporate payrolls about one-half percent.

In yet another poll that demonstrates the obvious, more than 70 percent of California residents listed the economy and the state budget as the top problems facing California - and two-thirds were unhappy with the way the state's leaders have faced the state's policy woes, including an $11.2 billion budget deficit for the current year. Considering the financial problems were caused by the state overspending, and the administration is refusing to structurally reduce spending (instead calling for tax hikes) the fact that California residents are sick of the incompetence of their elected officials is no surprise at all. Indeed, Gov. Schwarzenegger's approval rating has fallen by 18%, while only 21% of voters were pleased with the job state legislators are doing - a near record low. But Democratic lawmakers are still trying to get around the will of the people and raise taxes - yesterday they introduced a constitutional amendment to abolish the state's two-thirds budget vote requirement.