The state has maxed out its credit lines. On the General Fund, they’re stuck at least FY2012, not counting the $1.7 billion (and growing) borrowed from the federal government to pay unemployment benefits. The last time taxpayers were able to vote on debt was in 2000.
On the transportation side, they’re over-committed until at least FY2013.
Legislators are looking for ways to tax more services, tax online travel companies such as Orbitz or Expedia, reinstate cigarette tax stamps, increase the tax on little cigars, and tax internet ticket resales through companies such as StubHub or TicketMaster.
The spending is the problem and there are some simple (though not easy) ways to get that under control and fund the rainy day fund when the economy recovers in preparation for the next downturn.
