Economic Impact on States

Dec 28, 2008

C-SPAN | Washington Journal

With the current economic situation, states around the nation have also been greatly affected and are facing budget shortfalls. Joseph Henchman talked about the state of the U.S. and how individual states are dealing with budget issues. He responded to telephone calls and electronic mail.
With the current economic situation, states around the nation have also been greatly affected and are facing budget shortfalls. Joseph Henchman talked about the state of the U.S. and how individual states are dealing with budget issues. He responded to telephone calls and electronic mail.

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TIME SPEAKER TEXT
00:00:07 Unidentified Speaker "WASHINGTON JOURNAL" CONTINUES.
00:00:11 HOST WE WANT TO WELCOME JOSEPH HEDGEMAN WITH THE TAX FOUNDATION HERE IN WASHINGTON.
00:00:15 GUEST A PLEASURE TO BE HERE.
00:00:17 HOST HOW BAD IS IT FOR THE STATES AS WE FOUND OUT FOR THE FIRST TIME SINCE 1983 MOST ARE CUTTING SPENDING....
00:00:25 GUEST IT IS TOUGH WITH THE RECESSION. A LOT OF STATES ARE ABOUT HALFWAY THROUGH THEIR 2009 BUDGETS AND...
00:00:44 HOST WHAT DO GOVERNORS FACE? HOW DO THEY DEAL WITH IT AND WHAT HELP WILL THEY GET FROM THE FEDERAL GOVERNMENT...
00:00:52 GUEST FIRST THE USUAL STEP IS PAY OR HIRING FREEZES. A LOT OF GOVERNORS ARE DOING THAT. THEN THE NEXT STEP...
00:01:57 HOST MEDICAID IN PARTICULAR, ON AVERAGE BETWEEN 15% TO 25% OF A STATE BUDGET IS MEDICAID ASSISTANCE. THEY...
00:02:14 GUEST THAT IS THE BIG PROBLEM WITH RECESSION WHILE REVENUE FOR STATES IS DROPPING THE PRESSURE FOR STATE...
00:02:42 HOST YESTERDAY THE "WASHINGTON POST" FEATURING OHIO AND THE PIECE POINTS THAT TED STRICKLAND AND GOVERNOR...
00:03:18 GUEST WEERG SEEING A LOT OF -- WE ARE SEEING A LOT OF BIG NUMBERS LIKE THAT. YOU HAVE TO BE CAREFUL OF ...
00:04:26 HOST CALIFORNIA THE LARGEST STATE WITH A DEFICIT OF ALMOST $15 BILLION. THAT IS $3 BILLION HIGHER THAN...
00:04:35 GUEST AND $25 BILLION FOR NEXT YEAR AND HAD IS OUT OF OF A $100 BILLION BUDGET SO ALMOST A QUARTER OF BUDGET....
00:05:34 HOST "NEW YORK TIMES" SAYS 40 STATES FACE THIS PROBLEM. WHAT ARE THE EIGHT OR 10 THAT ARE DOING WELL?
00:05:40 GUEST STATES LIKE NORTH DAKOTA HAS A GROWING BUDGET SURPLUS AND HAVING A DEBATE ABOUT WHAT TO DO WITH IT....
00:06:00 HOST YOU GET MORE INFORMATION BY LOGGING ON TO TAX FOUNDATION.ORG. OUR GUEST IS JOSEPH HENCHMEN. FIRST...
00:06:51 HOST APPRECIATE THE CALL.
00:06:56 GUEST WELL, S-CHIP WAS DEBATED TO BE FUNDED BY THE CIGARETTE TAX INCREASE WHICH FAILED AND WILL IS TALK...
00:07:32 HOST NEXT CALL IS GALAX, VIRGINIA ON THE DEMOCRATS LINE WITH JOSEPH HENCHMAN. CALLER: GOOD MORNING. I...
00:08:58 HOST WHERE IS GALAX IN VIRGINIA? CALLER: IT IS IN THE VERY SOUTHWESTERN PART OF VIRGINIA. NEAR THE NORTH...
00:09:06 HOST WHAT IS THE ECONOMY LIKE THERE FOR YOU? CALLER: IT IS TERRIBLE. IT IS JUST TERRIBLE. IT IS HEAVY...
00:09:40 GUEST AT THE TAX FOUNDATION WE RANK THE STATES WHERE WE RANK EACH STATE ON THE BUSINESS FRIENDLINESS AND...
00:10:22 HOST NEXT CALL SHERMAN OAKS, CALIFORNIA. CALLER: GOOD MORNING. I DIDN'T HEAR HIM NAME CALIFORNIA BUT I...
00:10:35 HOST WHERE IS CALIFORNIA?
00:10:36 GUEST I THINK IT IS RATHER LOW. VERY HIGH TAXES. CALLER: OH, YES. AND I DON'T UNDERSTAND HOW THEY CAN...
00:11:14 GUEST CALIFORNIA IS ONE OF A FEW STATES WHERE THE GOVERNOR HAS PROPOSED A TAX INCREASE THIS YEAR. THE OTHERS...
00:11:43 HOST TWO OTHER STATES, NEW HAMPSHIRE UNION LEADER POINTING OUT THEY WILL FACE $70 MILLION IN BUDGET CUTS...
00:11:57 GUEST IT IS ALL OVER THE COUNTRY. COLORADO, THAT IS ANOTHER STATE WHERE THEY ARE USING -- AT THE SAME TIME...
00:12:16 HOST WHEN YOU LOOK AT THIS ECONOMIC PIE AND LOOK AT THE ENTITLEMENT PROGRAMS STATES FACE, THEIR ROAD AND...
00:12:35 GUEST HE WILL LOOK AT ALL OF THOSE THINGS AS WELL AS JUST TRYING TO FIND EFFICIENCIES WHEREVER YOU CAN....
00:13:14 HOST THE CENTER ON BUDGET POLICY PRIORITIES POINTING OUT THAT BEYOND 201038, 38 STATES ARE LOOKING AT CUTBACKS....
00:14:23 GUEST EVERY STATE EXCEPT VERMONT HAS A BALANCED BUDGET REQUIREMENT SO REVENUES AND EXPENDITURES NEED TO...
00:15:40 HOST SACRAMENTO IS NEXT. CALLER: GOOD MORNING, EVERYBODY. THANKS FOR THE OPPORTUNITY. I'M ON MY LAST NERVE...
00:17:05 HOST LET ME JUMP IN BECAUSE A COUPLE OF POINTS THE ASSOCIATED PRESS IS REPORTING ON OVER THE WEEKEND WITH...
00:17:45 HOST NO, I'M POINTING OUT THIS IS FROM THE ASSOCIATED PRESS REPUBLICAN LAWMAKERS HAVE BEEN LEFT OUT OF...
00:18:41 HOST SO HOW WILL THIS BE RESOLVED? HE HUNG UP. HOW WILL IT BE RESOLVED?
00:18:46 GUEST THE GOVERNOR OF CALIFORNIA HAS CONVENE ADD STUDY COMMISSION TO LOOK AT THE STATE TAX SYSTEM OVERALL...
00:19:12 HOST WHAT ABOUT NEW YORK THAT IS LOSING A LOT BECAUSE OF THE WALL STREET SITUATION, A LOT OF INVESTMENT...
00:19:22 GUEST GOVERNOR PATTERSON HAS UNVEILED A PROPOSAL THAT DOESN'T DO ANY BROAD BASED TAX INCREASES BUT RELIES...
00:19:46 HOST NEXT CALL IS FOR JOSEPH HENCHMAN, CHICAGO, GO AHEAD. CALLER: HELLO. I THINK IT IS NOT THAT IT IS NOT...
00:20:48 HOST EXCUSE ME, WE DON'T APPRECIATE THAT COMMENT AND I WANT TO COMMENT FOR THAT DISPARAGING REMARK.
00:20:54 GUEST THAT IS OK. ILLINOIS IS FACING A TOUGH BUDGET SITUATION. AND SOME ARE ACTUALLY CUTTING BACK ON CORRECTIONAL...
00:21:14 HOST KENTUCKY, SOUTH CAROLINA, VIRGINIA, LOOKING AT RAISING CIGARETTE TAXES.
00:21:19 GUEST OREGON ALSO.
00:21:21 HOST YOU LOOK AT WHAT SOME ARE PAYING. $4.25 TAX PER PACK OF CIGARETTES IN NEW YORK CITY. $2.75 IN NEW...
00:21:35 GUEST YES. THIS IS ANOTHER EXAMPLE OF STATES GOING FOR TARGETING CERTAIN GROUPS OF PEOPLE FOR PUNITIVE...
00:22:21 HOST OUR GUEST IS A NATIVE OF SAN DIEGO GRADUATE OF GEORGE WASHINGTON UNIVERSITY AND STUDIED AT U.C. BERKELEY....
00:23:08 GUEST I WILL NOTE THAT WEST VIRGINIA DOES HAVE A BALANCED BUDGET.
00:23:12 HOST ONE OF SIX OR EIGHT. NEXT CALL IS FROM LEWISVILLE, STOKES, GOOD MORNING. CALLER: GOOD MORNING. HOW...
00:23:19 HOST FINE, THANK YOU. CALLER: MY COMMENT IS TO THE GENTLEMAN THAT ASKED ABOUT A NEW STATE. I GREW UP IN...
00:23:53 GUEST PLEASED TO HAVE SOMEBODY OF MY FELLOW CALIFORNIANS ON THE PHONE. CHECK OUT OUR INFORMATION THAT RANKS...
00:24:07 HOST WHO FUNDS THE TAX FOUNDATION IS
00:24:10 GUEST A MIX OF DONORS ABOUT 1/3 CORPORATE, 1/3 FROM FOUNDATION AND 1/3 FROM INDIVIDUAL DONORS.
00:24:20 HOST ANNAPOLIS ISMINNEAPOLIS IS NEXT. CALLER: GOOD MORNING TO YOU. I DO WISH THAT AND HOPE THAT EVERYBODY...
00:26:07 GUEST THAT IS A SENTIMENT A LOT OF PEOPLE SHARE. MY ONLY POINT IS IF WE ARE SUPPORTING -- IF PEOPLE TONIGHT...
00:26:30 HOST NEXT IS AUBURN, ALABAMA. WELCOME TO "WASHINGTON JOURNAL." CALLER: GOOD MORNING. I'M A REGISTERED DEMOCRAT...
00:27:54 GUEST WELL, TALKING ABOUT COUNTY GOVERNMENTS, THERE'S AN OPPORTUNITY IN THIS CRISIS FOR A LOT OF REFORM....
00:28:50 HOST A COMMENT FROM A VIEWER IN MIAMI AND QUESTION FROM ANOTHER. THIS IS DERRICK GIBSON SAYS --
00:29:14 HOST THIS FROM KIM, WHO SAYS --
00:29:26 GUEST SURE. AS FOR THE FIRST QUESTION ON PRISONS AND EDUCATION, IT REALLY VARIES BY STATE ON WHAT A LOT...
00:30:31 HOST BRENDA IS A STATE EMPLOYEE E-MAILING FROM ANNAPOLIS.
00:30:51 GUEST I HAVEN'T HEARD OF ANY. MARYLAND HAS BEEN A BIG BUDGET, BIG IN THE BUDGET NEWS. LAST YEAR THEY RAISED...
00:31:26 HOST NEXT CALLER IS FROM VANCOUVER, WASHINGTON, REPUBLICAN LINE. CALLER: GOOD MORNING. HIGH MARKS TO C-SPAN....
00:33:17 HOST THANKS.
00:33:18 GUEST THE INFLATION MECHANISM THAT THE CALLER MENTIONED IS SOMETHING THAT IS OPEN TO THE FEDERAL GOVERNMENT...
00:33:54 HOST THIS IS A QUESTION.
00:33:55 GUEST I WOULD SAY PROBABLY ALASKA IS THE ONLY ONE IN THAT CATEGORY MAINLY BECAUSE OF FEDERAL SPENDING. ...
00:34:16 HOST THE LAST CALL FOR OVERHENCHMAN WITH THE TAX FOUNDATION. CALLER: FIRST TIME CALL IR ANDAND FIRST TIME...
00:35:25 HOST I WILL STOP THROUGH BECAUSE WE WILL MOVE ON. BUT DID YOU WANT TO RESPOND TO THE EARLIER POINT?
00:35:30 GUEST SORRY, I GOT DISTRACTED BY THE SECOND POINT THERE. IT CERTAINLY, THE BUDGET CRISIS IS A BIG PROBLEM...
00:35:41 HOST BACK TO THE PIECE IN THE "WASHINGTON POST" YESTERDAY WHERE TED STRICKLAND LEFT A VOICEMAIL ON ROB EMANUEL'S...
00:36:04 GUEST I HADN'T HEARD ABOUT THAT BUT THIS SORT OF BAILOUT FATIGUE SETTING IN. BUT AT THE SAME TIME A LOT...
00:36:17 HOST THAT IS WHAT THE WEEKEND REVENUE IN "NEW YORK TIMES" TALKING ABOUT PRINTING MONEY AND ITS PRICE. ...
00:36:25 GUEST YES. A LOT MUCH THE DEMOCRATIC GOVERNORS ARE BEING VERY VOCAL IN ASKING FOR FEDERAL MONEY. THE GOVERNOR...

NOTE: The transcript for this program was compiled from uncorrected Closed Captioning.

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  • Henchman, Joseph
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