From my hometown newspaper. Area high schools are considering eliminating sports and other extra curriculars as a way to deal with the depression. I can't blame them, and assume other local and state governments are taking similar actions.
Some of the locals are upset and are opining on how extra curriculars are an essential part of secondary education (erroneous) and shouldn't be on the chopping block, but I surmise these persons have limited background in finance and economics - government style. My 101 refresher follows:
What should upset locals is that between the years of 2003-2007 when almost every state and major municipality saw relative highs in tax revenues the mayors, councils, legislatures and governors spent like drunken sailors (or foolishly, foolishly cut taxes) with little foresight for a predictable downturn. Of course said locals, like the rest of us, derived benefit (nominal or otherwise) from the largess of this spending spree. And why fuss when the spigot is flowing right? You fuss because of the nasty hangover a.k.a the Greater Depression.
Some of the locals are upset and are opining on how extra curriculars are an essential part of secondary education (erroneous) and shouldn't be on the chopping block, but I surmise these persons have limited background in finance and economics - government style. My 101 refresher follows:
Bonds notwithstanding, govt budgets are financed with tax receipts. Tax receipts from people and businesses. With income tax revenue in decline because of skyrocketing unemployment AND property tax revenue down as a result of spiraling home prices AND business tax receipts down as a result of decreased spending then local and state governments TAX RECEIPTS will be down. In which case spending has to follow.
What should upset locals is that between the years of 2003-2007 when almost every state and major municipality saw relative highs in tax revenues the mayors, councils, legislatures and governors spent like drunken sailors (or foolishly, foolishly cut taxes) with little foresight for a predictable downturn. Of course said locals, like the rest of us, derived benefit (nominal or otherwise) from the largess of this spending spree. And why fuss when the spigot is flowing right? You fuss because of the nasty hangover a.k.a the Greater Depression.
