Green Room

Texas not the only state with a surplus

posted at 6:08 pm on January 8, 2013 by

Gov.-elect Mike Pence of Indiana will go into office with a sunny fiscal outlook:

With a $500 million budget surplus and $2 billion in reserves, Indiana Governor-elect Mike Pence has pledged to give back some of that money when he takes office next week by cutting personal income taxes.

“An across-the-board tax cut for all Hoosiers would send a strong signal that we are managing our funds wisely and also reducing the tax burden on our taxpayers and businesses,” the former U.S. Congressman said while campaigning to replace outgoing fellow Republican Mitch Daniels as governor.

A few more:

Iowa is looking at an $800 million surplus. Florida’s is more than $400 million. Michigan, which was in a recession years before the country entered one in 2007, has an extra $1 billion in its general funds.

I can’t help but think these states have something in common. What is it? Daniels/Pence, Brandstad, Scott, Snyder. Hmmm.

And, it turns out budgeting sanely can actually allow states to help cope with new health care costs:

In Tennessee, Republican governor Bill Haslam has said that much of the state’s $580 million surplus is already spent. Obamacare is expected to increase enrollment in TennCare, the state’s Medicaid program, by more than 60,000 Tennesseans.

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike, but California is also utterly drowning in insane amounts of debt, so I’m not sure they get credit for this maybe-surplus. But I’m sure our intellectual betters on the left will continue to tell us their model is the future of the nation.

Recently in the Green Room:

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike

Not a chance.

JusDreamin on January 8, 2013 at 6:17 PM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike, but California is also utterly drowning in insane amounts of debt, so I’m not sure they get credit for this maybe-surplus. But I’m sure our intellectual betters on the left will continue to tell us their model is the future of the nation.

And pigs are going to fly out of my ….

peski on January 8, 2013 at 6:18 PM

With a $500 million budget surplus and $2 billion in reserves, Indiana Governor-elect Mike Pence has pledged to give back some of that money when he takes office next week by cutting personal income taxes.

You Hoosiers are smart to elect someone like Pence. Wish I could get out of Illinois like so many others:

Illinois lost a net of 1,227,347 residents to other states between 1991 and 2009, or slightly more than one resident (1.22) every 10 minutes.

The top states that people from Illinois move to are Florida, Indiana, Wisconsin, Arizona and Texas.

Illinois lost 86,021 taxpayers between 1995-2007 to its border states: Wisconsin, Indiana, Iowa, Missouri and Kentucky. This represents $4.1 billion in lost Adjusted Gross Income (AGI) and $26.8 billion in cumulative AGI loss.

Illinois lost people and taxpayers to 40 states and the District of Columbia, and Illinois lost net income to 42 states and the District of Columbia.

The total net income leaving the state averaged over $1.8 billion between 1995 and 2007 with a total loss of $23.5 billion. Had this income stayed in Illinois, state and local governments would have collected an estimated $2.4 billion in additional tax revenue.

When a resident moves out of Illinois, the state doesn’t just lose income and taxes for that one year; rather, the state loses any income and taxes that resident would have generated for all future years. Compounding these figures over the 13 years assessed in this study – without adjusting for inflation – the state has lost $163.6 billion in net income and $16.9 billion in state and local tax revenue due to out-migration.

People move from Illinois to states with lower taxes (especially estate taxes), lower union membership, lower population density, lower housing costs and warmer weather.

^ This is from 2011. The outbound Illinois migration is continuing, unabated.

visions on January 8, 2013 at 6:26 PM

And, it turns out budgeting sanely can actually allow states to help cope with new health care costs:

In Tennessee, Republican governor Bill Haslam has said that much of the state’s $580 million surplus is already spent. Obamacare is expected to increase enrollment in TennCare, the state’s Medicaid program, by more than 60,000 Tennesseans.

Oh well, I’m sitting here in TN waiting for all those government handouts that blue-staters say we get here.

ddrintn on January 8, 2013 at 6:27 PM

But I’m sure our intellectual betters on the left will continue to tell us their model is the future of the nation.

They way things are going in Washington, it’s quite accurate to say that the California model is the future of the nation.

Massive entitlement spending, crippling debt, confiscatory-yet-insufficient taxation…

KingGold on January 8, 2013 at 6:31 PM

Liberals think something is wrong with Republicans if the states run by said Republicans have a surplus.

redguy on January 8, 2013 at 6:31 PM

Texas not the only state with a surplus

True, but we’re the only one with this kind of surplus.

TxAnn56 on January 8, 2013 at 6:32 PM

Any bets on how long it is before the Dems think it’s only “fair” to “share” this with blue states?

Wethal on January 8, 2013 at 6:35 PM

They way things are going in Washington, it’s quite accurate to say that the California model is the future of the nation.

Massive entitlement spending, crippling debt, confiscatory-yet-insufficient taxation…

KingGold on January 8, 2013 at 6:31 PM

http://www.youtube.com/watch?v=YJQp7Id2ywE

redguy on January 8, 2013 at 6:35 PM

Any bets on how long it is before the Dems think it’s only “fair” to “share” this with blue states?

Wethal on January 8, 2013 at 6:35 PM

I am sure Obama & Reid are working on a law right now…….

http://dailycaller.com/2012/09/18/1998-audiotape-surfaces-obama-urged-trick-to-aid-wealth-redistribution/

redguy on January 8, 2013 at 6:37 PM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike

HA! Not unless states can mint their own trillion dollar coins now…

nextgen_repub on January 8, 2013 at 6:48 PM

Liberals think something is wrong with Republicans if the states run by said Republicans have a surplus.

redguy on January 8, 2013 at 6:31 PM

“Those Teabagging RethugliKKKlans are SO stupid – the had money and they didn’t spend it all!!!”

CycloneCDB on January 8, 2013 at 6:51 PM

California has a surplus all right — and one that’ll keep on growing (especially after they repeal Proposition 13): foreclosed on and underwater homes …

ShainS on January 8, 2013 at 7:29 PM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike, but California is also utterly drowning in insane amounts of debt,

I heard this from an LA resident. He also told me that Barky is the most talented and intelligent leader in US history, the the US is finally respected by other countries, and that aside from Tea Party racists OCare is loved by all.

I tried not to look at him like a dangerous science experiment.

CorporatePiggy on January 8, 2013 at 7:40 PM

BREAKING: State taxes too high

theperfecteconomist on January 8, 2013 at 7:48 PM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike, but California is also utterly drowning in insane amounts of debt, so I’m not sure they get credit for this maybe-surplus.

Yeah. Marginal rates have less of an effect on output when people don’t know that they’ve been raised until after they’ve done all of the work.

besser tot als rot on January 8, 2013 at 7:58 PM

But, once Californians recognize what their marginal rates are??

After Proposition 30 passed on November 6, 2012, the State of California experienced a decline in the total state revenue for the month of November. California State Controller John Chiang reported that the total revenue for the month of November declined by $806.8 million, which is 10.8 percent below budget.

besser tot als rot on January 8, 2013 at 8:04 PM

With a $500 million budget surplus and $2 billion in reserves, Indiana Governor-elect Mike Pence has pledged to give back some of that money when he takes office next week by cutting personal income taxes.

Why isn’t he giving all of it back? Govt should never run a surplus, give back every penny they don’t need.

clearbluesky on January 8, 2013 at 8:06 PM

Why isn’t he giving all of it back? Govt should never run a surplus, give back every penny they don’t need.

clearbluesky on January 8, 2013 at 8:06 PM

Tend to agree but a rainy day fund is useful if…oh I don’t know…the economy totally tanks and is then ‘rescued’ by a Marxist.

IOW, factors outside of local control.

CorporatePiggy on January 8, 2013 at 8:14 PM

I can’t help but think these states have something in common. What is it? Daniels/Pence, Brandstad, Scott, Snyder. Hmmm.

People who didn’t run for president in 2012? Ummm… And, Perry should have waited until he was off the back meds before jumping in. (Just a little bit of 20/20 hindsight.)

Fallon on January 8, 2013 at 8:25 PM

Tend to agree but a rainy day fund is useful if…oh I don’t know…the economy totally tanks and is then ‘rescued’ by a Marxist.

IOW, factors outside of local control.

CorporatePiggy on January 8, 2013 at 8:14 PM

Yeah, states can’t print money like Uncle Sam does. If a hurricane or two hit, or a drought, or a crash in the price of a crucial commodity, it’s good to have a contingency fund. Texas has been there and done that and got the t-shirt.

juliesa on January 8, 2013 at 8:49 PM

The all important question is how much federal money do those states take in? Not saying they’re not doing a good job, but if we’re watching our federal government go deep in debt while providing funds to states, then what does it really matter if a state is balanced and/or with a surplus if they’re contributing to the federal debt?

Where is the offset?

ButterflyDragon on January 8, 2013 at 8:50 PM

I just left Illinois last week and moved to Indiana (changing companies). It’s like getting a raise just by changing locations. Still a Bears fan though.

kerrhome on January 8, 2013 at 8:54 PM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike

So far for first five months of this fiscal year (July 2012 to November 2012) state revenues are running $508 million under budget (revenues are down over $800 billion, we have about $300 million in “non revenue” receipts, whatever those are.

Outlays are running 2.164 BILLION over budget estimate. So overall, we have about 2.67 BILLION dollars worse today than the budget estimated for this fiscal year.

http://www.sco.ca.gov/Files-EO/12-12summary.pdf

crosspatch on January 8, 2013 at 9:07 PM

ButterflyDragon, beware of misleading statistics. When you hear about “federal money” states “take in” and how much that state’s residents pay in “taxes,” ask whether social security and medicare are included in those figures.

Lots of people retire to red states and draw Social security and medicare. If you include SS in the figures, it makes the red states look like they get more from the govt than they pay in taxes.

An honest tabulation would show the SS breakout. Fat chance, eh?

By the way, the same trick applies to Warren Buffett saying that his secretary pays a higher tax rate than he does. I only have two concerns with how he computes tax “rate” — the numerator and the denominator. I’ll bet he’s including SS in the numerator. I’ll also bet he’s ignoring charitable giving in the denominator. He’s lowering his “rate” by giving a ton of money to charity. Sorry, but that’s not a lower “rate.”

Pythagoras on January 8, 2013 at 9:34 PM

I just left Illinois last week and moved to Indiana (changing companies). It’s like getting a raise just by changing locations. Still a Bears fan though.

kerrhome on January 8, 2013 at 8:54 PM

Welcome home!

Which reminds me, since I live in Indiana, I should probably find a job in Indiana instead of Illinois… Gov. Quinnochio helping himself to 5% of my income–and he’s not even my governor–is really getting under my skin.

JimLennon on January 8, 2013 at 10:31 PM

We’re trying to get a surplus in the Buckeye state. Despite the three Blue cities.

The_Livewire on January 9, 2013 at 7:54 AM

Don’t forget about Wisconsin. We’re projectinga a surplus and a tax cut is on the table for Walkers 2013 budget.

God knows we need it.

WisRich on January 9, 2013 at 9:14 AM

Gov.-elect Mike Pence of Indiana will go into office with a sunny fiscal outlook:

With a $500 million budget surplus and $2 billion in reserves, Indiana Governor-elect Mike Pence has pledged to give back some of that money when he takes office next week by cutting personal income taxes.

This guy is my number one preferred choice for 2016. Too bad he has zero chance.

Doomberg on January 9, 2013 at 9:28 AM

And liberals still think they are the grand brain-trust of this country. We are still in a recession, yet Snyder outperformed Granholm in 2 short years compared to her disaster filled 8 years.

“You ain’t seen nothen’ yet!”

NotCoach on January 9, 2013 at 9:38 AM

I better not hear any more about how gay marriage destroys societies. Looks like Iowa’s doing good after almost four years with it. :P

TMOverbeck on January 9, 2013 at 9:49 AM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike

No way,not with that new choo choo train.

tommer74 on January 9, 2013 at 10:51 AM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike

I left CA for AZ and I couldn’t be happier. CA always pretends it will have a surplus every year because Sacramento uses ridiculous estimates for future tax revenues and economic growth. Hell, I think their pension formula still uses 6-8% market growth rates to calculate future state pension reserves.

Wait and see. On or around April 1st, the CA state treasurer will release his estimates for tax revenues like he does every year and there will be another multi-billion dollar budget deficit. That will be the catalyst for another round of tax hikes and CA will circle the drain for another year….

powerpickle on January 9, 2013 at 11:02 AM

powerpickle on January 9, 2013 at 11:02 AM

Good for you. I made the move to AZ in 2007 and don’t regret it one bit.

chemman on January 9, 2013 at 11:59 AM

BREAKING: State taxes too high

theperfecteconomist on January 8, 2013 at 7:48 PM

THIS.
Aside from your respective state having a safety net, which I do agree with, there comes a point where they are taxing us too much.
Like here in ND with our Legacy fund & surpluses, then we take Federal government $$, which I do not believe we should since we have surpluses, & THEN my county property taxes just rose by another 30%!
WTF?!
That is nothing short of ABUSIVE.

Badger40 on January 9, 2013 at 12:53 PM

This guy is my number one preferred choice for 2016. Too bad he has zero chance.

Doomberg on January 9, 2013 at 9:28 AM

Please, please stop it. Look, I’m in Indiana and I voted for Pence.

The only thing Pence ran on to get elected Governor was on the back of Mitch Daniels. Period.

In fact, of all the state-wide elected offices in 2012, Pence had the lowest percentage of votes.

Romney got more Indiana votes (for President) than Pence did (for Governor). If your point were to have validity, Pence should have gotten more votes. How in the world does Pence take that national?

Please, please stop it now.

Carnac on January 9, 2013 at 12:59 PM

Last I checked Idaho was on track for a budget surplus as well.

WolvenOne on January 9, 2013 at 1:23 PM

1995 thru 2011 Federal USDA farm subsidies per state:

Texas: $25.8 billion (ranked #1)

Iowa: $23.6 billion (#2)

California: $9.9 billion (#10)

Indiana: $9.7 billion (#11)

MichaelGabriel on January 9, 2013 at 1:46 PM

Worst States for Property Taxes

The Tax Foundation found that homeowners in these states paid the most in property taxes compared to home value. The percentages represent the percentage of home value that homeowners pay in property taxes.
1.New Jersey – 1.89%
2.New Hampshire – 1.86%
3.Texas – 1.81%
4.Wisconsin – 1.76%
5.Nebraska – 1.70%
6.Illinois – 1.73%
7.Connecticut – 1.63%
8.Michigan – 1.62%
9.Vermont – 1.59%
10.North Dakota – 1.42%

MichaelGabriel on January 9, 2013 at 1:58 PM

California claims it may come in even or with a surplus this year thanks to Gov. Jerry Brown’s tax hike…

BWAhahahahaha. The last period for which data has been released is November, 2012. Income tax collections were a billion dollars under projections. That’s how good we are at prognostication around here.

SukieTawdry on January 9, 2013 at 6:22 PM