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New York to run out of unemployment-insurance money...


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Sampling of editorials from New York state

 

The Press-Republican of Plattsburgh on NY's unemployment benefits.

 

Dec. 15.

 

New York's bad news keeps getting worse. According to The Associated Press, this state is one of five on the brink of running out of money to pay unemployment benefits.

 

That news is not bad for the people expecting the money _ they'll get it, though the amount could be trimmed. It's bad for the rest of the people: Since the law requires that unemployment be paid, the state has no choice but to find the money. It will have to tax employers to replenish the fund or else borrow the money.

 

This is not a good time for the fund to run low, obviously. Layoffs have been piling up as the economy has withered. New York's economy is worse than most because its revenue stream relies so heavily on Wall Street income, which has all but evaporated in the past several months.

 

The predicament may be partially due to mismanagement. The states that are running out of money have been cutting taxes instead of building up reserves in the unemployment fund, according to critics, who also acknowledge that it's difficult to keep up with demand during trying periods.

 

It's always politically expedient to give tax decreases; it's never expedient to raise taxes for invisible purposes, such as keeping a benefit solvent.

 

The five states that would run out of unemployment-insurance money within three months are Michigan, Indiana, Ohio, South Carolina and New York. The five have in common that they are largely reliant on manufacturing. Recently, manufacturing has tailed off as spending has decreased. We are in a cycle of inertia that has long tentacles. As spending slows, so does manufacturing, which, in turn, requires fewer workers who need benefits.

 

Those benefits must come from employers, who are realizing less revenue because of the slowdown. If employers are forced to pay more in unemployment insurance, they are more likely to lay off more workers to reflect the revenue predicament.

 

Indiana is planning to borrow from the federal government to cover unemployment claims. Michigan is going to raise employer contributions. Ohio is going to ask Congress for help.

 

New York hasn't said yet what it plans to do. Gov. David Paterson is having difficulty getting a commitment from the legislature on what to do about a myriad of shortfalls. Unemployment is just one of them.

 

Paterson called a special session of the legislature last month, which proved futile. Few answers to anything emerged. On unemployment insurance, however, the state will be forced by federal mandate to make sure the supply of cash to pay benefits is adequate.

 

It's just one more area in which bad news keeps mounting. The legislature in 2009 is going to be forced to overcome its penchant for political wrangling and get down to serious business for the benefit of all taxpayers.

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I think he should sell the Senate seat to the highest bidder, as long as it's in the open and the money goes into the state treasury. Put an opening bid price of $100 million on it and see who bites.

Do you think $100M would do it? That's a drop in the bucket. How long would I have to live in NY first? Is a Googlebot or a hamster eligible?

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Hard to do, but time to trim the fat from the budget. I know all the state workforce could be trimmed by 10% and still run efficiently.

 

What do you mean "still"? And I'd say the number is at least 20%.

 

Take a look at the details of any municipal budget and the overwhelming majority of the expenses are personnel related. Of course, that item never warrants so much as a mention during these "difficult" budget times. Instead they want to figure out how to force working people to pay more for everything from soda to car registrations or else scare people with talk of "cuts" in education and healthcare.

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Do you think $100M would do it? That's a drop in the bucket. How long would I have to live in NY first? Is a Googlebot or a hamster eligible?

Senator, shmenator! For only about 10x that, you could have the coveted title of "Owner of the Buffalo Bills." You could live anywhere you want and you could appoint any of your ragtag cast of lunatic cronies to any executive position you want. What the hell are you waiting for?

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Senator, shmenator! For only about 10x that, you could have the coveted title of "Owner of the Buffalo Bills." You could live anywhere you want and you could appoint any of your ragtag cast of lunatic cronies to any executive position you want. What the hell are you waiting for?

I ran Ralph out of business in a few ventures he tried. He won't sell to me.

 

A sentor could force him.

 

You have to learn to think a few steps ahead. Anyway, I tried to get Schumer to help but I can't stand the guy's voice. It is very grating. I didn't want to have to put up with him forever.

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The predicament may be partially due to mismanagement. The states that are running out of money have been cutting taxes instead of building up reserves in the unemployment fund, according to critics, who also acknowledge that it's difficult to keep up with demand during trying periods.

 

Well NYS may be running out of money, but it sure isn't because they cut taxes

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Sampling of editorials from New York state

 

The Press-Republican of Plattsburgh on NY's unemployment benefits.

 

Dec. 15.

 

New York's bad news keeps getting worse. According to The Associated Press, this state is one of five on the brink of running out of money to pay unemployment benefits.

 

That news is not bad for the people expecting the money _ they'll get it, though the amount could be trimmed. It's bad for the rest of the people: Since the law requires that unemployment be paid, the state has no choice but to find the money. It will have to tax employers to replenish the fund or else borrow the money.

 

This is not a good time for the fund to run low, obviously. Layoffs have been piling up as the economy has withered. New York's economy is worse than most because its revenue stream relies so heavily on Wall Street income, which has all but evaporated in the past several months.

 

The predicament may be partially due to mismanagement. The states that are running out of money have been cutting taxes instead of building up reserves in the unemployment fund, according to critics, who also acknowledge that it's difficult to keep up with demand during trying periods.

 

It's always politically expedient to give tax decreases; it's never expedient to raise taxes for invisible purposes, such as keeping a benefit solvent.

 

The five states that would run out of unemployment-insurance money within three months are Michigan, Indiana, Ohio, South Carolina and New York. The five have in common that they are largely reliant on manufacturing. Recently, manufacturing has tailed off as spending has decreased. We are in a cycle of inertia that has long tentacles. As spending slows, so does manufacturing, which, in turn, requires fewer workers who need benefits.

 

Those benefits must come from employers, who are realizing less revenue because of the slowdown. If employers are forced to pay more in unemployment insurance, they are more likely to lay off more workers to reflect the revenue predicament.

 

Indiana is planning to borrow from the federal government to cover unemployment claims. Michigan is going to raise employer contributions. Ohio is going to ask Congress for help.

 

New York hasn't said yet what it plans to do. Gov. David Paterson is having difficulty getting a commitment from the legislature on what to do about a myriad of shortfalls. Unemployment is just one of them.

 

Paterson called a special session of the legislature last month, which proved futile. Few answers to anything emerged. On unemployment insurance, however, the state will be forced by federal mandate to make sure the supply of cash to pay benefits is adequate.

 

It's just one more area in which bad news keeps mounting. The legislature in 2009 is going to be forced to overcome its penchant for political wrangling and get down to serious business for the benefit of all taxpayers.

 

 

Perhaps the onl state in worse shape is the soviet socialist republic of California. NY is like a black hole of tax money.

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