How to NOT Get Rich Fast!

The State of Arizona had a -30.8% drop in tax revenues, year over year, from January 2008 to January 2009. I find it absolutely fascinating, and a sign of our Doom, that no one, not a PERSON, has mentioned that they/we need to curtail spending to get expenses in line with revenues.

It is as though they are intellectually incapable of grasping the concept.

Article here.
Data here.

State preparing to borrow money for first time in history
51 comments by Mary Jo Pitzl - Mar. 19, 2009 10:08 AM
The Arizona Republic

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State officials have set the stage for Arizona to borrow money for the first
time in its modern history.

"We literally have no other way to raise cash," state Treasurer Dean Martin told
members of the state Loan Commission this morning.

The commission voted 3-0 to set the maximum interest rate the state would pay on
short-term loans that Martin estimates would range from $104 million to $184
million. The rate would float until the actual borrowing is done - most likely
in mid-April - but would be below 2.25 percent, the commission decided.

Gov. Jan Brewer, who sits on the commission by virtue of her post as governor,
called it "alarming" that state has to borrow in order to pay its bills.

"Needless to say, this is not the right way to run government," she said.

Brewer is trying to convince lawmakers that they need to either enact a
temporary tax increase, or refer a tax question to the ballot, to help the state
balance its budget over the next few years.

The short-term loans that Martin says are needed would add up to $79,000 to the
state's current-year deficit. The state has been grappling with deficits in its
last two budgets, and faces a $2.8 billion deficit for next year.

Martin likened the issuance of the treasurer warrant notes to overdraft
protection on the state's checkbook.

This is the second time this year that Martin has sounded the alarm on the state's
cash flow dipping into the red. Two months ago, he convened the loan commission
to start the borrowing process, only to produce fireworks when he and then-Gov.
Janet Napolitano clashed over how imminent the need was.

Ultimately, there was no borrowing. Martin said the state's fiscal condition has
deteriorated since then.

"This is worse than what we looked at in January," he said. "Things are eroding."

The cuts lawmakers made to close the state's $1.6 billion deficit in late
January helped for a while, Martin said, but "revenues fell off the cliff in the
last three weeks."

Although he anticipates only one round of short-term borrowing this year, Martin
said to expect more to come as the state enters fiscal 2010, where the state is
anticipating its revenues to fall nearly 30 percent short of its spending
obligations.

January General Fund revenue collections
were $662.5 million, or (21.9)% below January
2008. This level of collections was $(81.8)
million below the January revised budget
forecast.

The large January decrease of (21.9)% is
especially significant given the low 2008 base.
January 2008 collections were (14.4)% below
January 2007, giving us a 2-year decline of
(36.6)%.

• January individual income tax collections
were down (30.8)% compared to January
2008 and were $(57.7) million below the
forecast. January’s withholding tax
collection decrease of (14.7)% was the
largest decline since 1983.