Changes will be needed to insure our safety, but the major problem today is not our safety but our economic well being and standard of living, which are declining at an accelerated rate.

There is a way to turn the economy around real fast. But first, the Wall Street Journal just reported:

"States already struggling financially under the weight of a lagging economy will be more likely to consider tax increases following last week's terrorist attacks, budget analysts say..."

"Even before the terrorist attacks, many states were facing the worst budget squeeze in a decade..."

"While the average state is blessed with still-healthy cash reserves amounting to more than 6% of general-fund expenditures - following a decade of saving for a rainy day - those reserves are smaller than they have been in recent years."

The first item in the article is that they refer to "budgets". They never mention another public document that tells the whole story regarding a government's financial condition, the Comprehensive Annual Financial Report (CAFR).

The third item above states that State governments had and have "...healthy cash reserves." Healthy is not the proper description; huge is a better term.

Results of Reviews of Selected State and Local Government Surpluses. A complete listing and summary.

Individual Reports:

The above 17 State reviews, representing approximately 50% of the U.S. population, have over $362 billion in potential reserves they are not using. That is $2,558 for every man, women and child in these States or $10,231 for a family of 4.

For the total U.S. the amount would be $719.82 billion and 7.2 million jobs would be created.

This is only the States, not the school districts, cities, townships and counties.

Governments provide many excuses for holding these "reserves". Their excuses never prove that holding these reserves exceeds the economic benefits if these reserves are returned to the people (the economy). Here are some of these excuses and responses [Link].

The ultimate excuse is that these reserves are needed for "emergencies". This is an emergency, the ultimate emergency for Americans, their economic survival.

The money is there. You have to go get it back. If you do not then you better learn how to say "Yes Comrade," with a smile.

Don't let the national news media fill you with lies about the State and local governments financial condition. When governments and news media say "budget", you should ask them if what they say also applies to the Comprehensive Annual Financial Report (CAFR).

Now you know a little more of the truth.

Respectfully,

Gerald R. Klatt
Lieutenant Colonel, USAF, Retired
CAFRman
http://www.cafrman.com