The Chart All State Legislators Should See
On Monday, the Government Accountability Office released their annual update on the fiscal outlook for state and local governments. According to the GAO report, state and local government budgets will come into balance…NEVER.
There are other relevant facts included in the GAO study — the near-doubling of health spending as a percentage of GDP, for instance, or GAO’s conclusion that “as a percentage of gross domestic product, our model estimates that total tax revenues…will remain below the 2007 historical high through 2060, due to the projected modest growth in receipts.” But when it comes to whether or not states should expand their Medicaid programs under Obamacare, the basic calculus should be the determining one: If under current projections state and local government budgets will NEVER balance, why should any state increase spending by expanding Medicaid?