Feed on
Posts
Comments

From Steve Malanga:

Some budget trickery betrays pledges made by lawmakers to taxpayers. One common example is “sweeps,” when a state shifts money from accounts dedicated to specific purposes, like highway maintenance, into general accounts where the money can be spent on anything.

One honey pot is the tax revenue designated by federal law for upgrading 911 emergency-response systems. An August survey by the Federal Communications Commission reported that states redirected $135 million in these taxes last year to spending for other purposes. New York is a serial abuser: Since 1991, the Empire State has collected an estimated $600 million from its 911 tax. But only $84 million has actually gone to local officials for upgrading emergency services.

These fund transfers have become so routine that New York must now do “reverse sweeps.” For example, New York created a fund 20 years ago to finance bridge and road construction and maintenance. But it often transfers money out of it and into the state’s general accounts—only to replace what’s been swept by borrowing more. About a third of the Dedicated Highway and Bridge Trust Fund’s disbursements, or nearly $1 billion, now goes toward debt service, a figure projected to rise to 70% by 2014. And so New York is shifting tax dollars back from its hard-pressed general fund to help pay off the transportation account’s debt.

Read the rest for a head spinner.

10 Responses to “This Week’s Sign of the Economic Apocalypse”

  1. this says:

    987611 68856As a result you will require ultra powerful online enterprise suggestions to keep operating in acquiring into matters correct your incredible web-based work. MLM 218435

  2. 588520 799390Thanks for blogging and i enjoy the weblog posting so no public comments.,,,,,,,,,,, 963625

  3. 759562 351514I really thankful to discover this internet site on bing, just what I was searching for : D too bookmarked . 879674

  4. 734442 979825Hi there, just became aware of your blog through Google, and identified that its genuinely informative. Im gonna watch out for brussels. I will appreciate in case you continue this in future. Lots of people will probably be benefited from your writing. Cheers! 198502

  5. chat rooms says:

    344272 172705obviously like your website but you need to test the spelling on several of your posts. 115137

  6. fun88 says:

    484985 803908cool thanks for reis posting! btw are there feeds to your blog? Id adore to add them to my reader 658995

  7. fun88 says:

    685415 650723Hello! Someone in my Facebook group shared this internet site with us so I came to look it more than. Im surely enjoying the data. Im book-marking and will be tweeting this to my followers! Outstanding weblog and superb style and style. 816595

  8. Aviator says:

    253300 861028Nice read, I just passed this onto a colleague who was doing a little research on that. And he just bought me lunch since I identified it for him smile So let me rephrase that: Thank you for lunch! 69156

  9. luckyet says:

    932045 331550Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your customer to communicate. Excellent task.. 672618

  10. 356422 567880Attractive part of content. I just stumbled upon your internet site and in accession capital to claim that I acquire in fact enjoyed account your blog posts. Any way Ill be subscribing to your feeds and even I achievement you get entry to constantly rapidly. 850618

Leave a Reply