Shocking Forbes Report: Bluest/Democrat States are Most Broke & Going Bankrupt; Because of Unions, Pensions, Costly State Programs & Social Services:

Shocking Forbes Report: Bluest/Democrat States are Most Broke & Going Bankrupt; Because of Unions, Pensions, Costly State Programs & Social Services:
By Marc Chamot

If anybody really wants to know as to why Republicans are making a BIG comeback, it doesn’t take too far to look for the answers. There is a track record that proves, Democrats are total FAILURES, when it comes to sound fiscal policies.

What’s truly amazing folks, most of the Democrat Leaderships in the U.S. congress, including this American president, they all come from these failing blue states. And they want to enact fiscally dangerous policies, like healthcare, Cap and Trade and more?

In a stunner of an article, written by Forbes Magazine, tells it all that we need to know about Democrats, for those, who are extremely concerned about our nations financial and economic situations, need to be aware of.

It’s not surprising at all. I live in Sad Sack City of San Francisco progressives, and in the sorriest state of Pelosi’s California. I just live to write about it. It’s something I’ve been saying all along in my blogs, here and there, but there’s concrete proof now.

Democrats and their party ideals are truly bankrupting this nation and our states. This explains as to why progressive liberal Democrats like to expand government, and tax folks into oblivion.

"Why do Democratic states appear to be struggling more than Republican ones? It comes down to stronger unions and a larger appetite for public programs, according to Kent Redfield, professor emeritus of political studies and public affairs at the University of Illinois' Center for State Policy and Leadership.

"'Unions in general have more influence in Democratic-controlled states,' he says.’This isn't to say that unions are bad, but where they're strong you have bigger demands for social services and coalitions with construction companies, road builders and others that push up debt.'"

Political Litmus Test: Bluest States Spilling the Most Red Ink
Neil Weinberg,
Powerful unions, big spending put Democratic states in deepest fiscal holes.
Want to know which states are in the worst financial condition? One telling indicator that might not immediately come to mind is whether most of its citizens identify themselves as Democrats.

The five states in the worst financial condition--Illinois, New York, Connecticut, California and New Jersey--are all among the bluest of blue states. The five most fiscally fit states are more of a mix. Three--Utah, Nebraska and Texas--boast Republican majorities and two--New Hampshire and Virginia--skew Democratic.

The financial ranking of the states is part of a recent Forbes report on the Global Debt Bomb. The political affiliation data was compiled in a 2009 poll of 350,000 adults by Gallup Daily.

Forbes' metrics for each state included unfunded pension liabilities, changes in tax revenue, credit ratings, debt as a percentage of Gross State Product, debt per capita, growth expectations for employment and the state economy, net migrations and a "moocher ratio" that compares government employees, pension burdens and Medicaid enrollees to private-sector employment.

In Pictures: Bluest States Spilling The Most Red Ink
Why do Democratic states appear to be struggling more than Republican ones? It comes down to stronger unions and a larger appetite for public programs, according to Kent Redfield, professor emeritus of political studies and public affairs at the University of Illinois' Center for State Policy and Leadership.

Do you think state finances are better in Democratic or Republican hands? Share your thoughts in the Reader Comments section.

"Unions in general have more influence in Democratic-controlled states," he says. "This isn't to say that unions are bad, but where they're strong you have bigger demands for social services and coalitions with construction companies, road builders and others that push up debt."

Of the 10 states in the worst financial condition, eight are among a total of 23 defined by Gallup as "solidly Democratic," meaning the Democrats enjoy an advantage of 10 percentage points or greater in party affiliation. These states include the ones listed above as making up the bottom five, plus Massachusetts, Ohio and Wisconsin.

Of the three other basement-dwellers, Kentucky is defined as "leaning Democratic" (a five- to 10-percentage-point Democratic advantage) and the remaining two--Louisiana and Mississippi--are termed politically "Competitive" (less than a five-percentage-point advantage for either party). Louisiana tilts slightly Democratic and Mississippi slightly Republican.

The majority Republican states ranked among the financially healthiest are Utah, Nebraska, Texas, North Dakota and Montana. All told, seven of the 10 most Republican states rank in the top half in terms of fiscal fitness.

The exceptions are Kansas at No. 28, Alaska (31) and Mississippi (44). It should be noted that four of these red-leaning states are categorized as "competitive" by Gallup. In total only three of the 50 states (Idaho, Utah and Wyoming) are rated "solidly Republican"; only Alabama ranks as "Republican leaning."

Utah, the fiscally fittest state, has debt of just $442 and unfunded pension obligations of $7,272 per resident. It is also America's second reddest state with a 21-percentage-point Republican advantage in party affiliation. The Beehive state boasts a triple-A credit rating from Moody's.

Illinois is in the worst financial condition, with per-capita debt of $1,877 and unfunded pensions of $17,230. Moody's rates Illinois' general obligation debt A1, ahead of only California's.

Trillion-Dollar Pension Gap Just Beginning of States' Fiscal Woes
Asher Hawkins, 02.18.10, 12:36 PM EST

Figure doesn't account for market drop, $500 billion in unfunded health care promises.
U.S. states face a 13-figure shortfall in meeting their pension obligations to public employees, a new report by the Pew Center on the States has concluded. Just when you thought things couldn't get worse, keep in mind that the recently released data don't cover the latter half of 2008, when crashing markets cut many large public pension funds' assets by upward of 30%.

That $1 trillion-plus is but one piece of the growing debt bomb facing governments across the globe. For a look at which U.S. states are in danger of fiscal meltdown, visit our interactive Debt Atlas of America.

A glance at the figures underlying states' pension gaps might indicate that some states are in better shape than others. While Illinois and most of New England (Connecticut, Massachusetts, New Hampshire and Rhode Island) all face pension under-funding approaching 50%, America's largest states, California, Florida, New York and Texas, went into the recession better prepared, with funding levels of roughly 85% or more.

The stock market rollercoaster that's played out since mid-2008 didn't help matters, but the fact that fewer states had only enough funds to cover half their promises is somewhat good news.

Interactive: Is Your State A Debt Disaster
However, funding for retiree health care and other benefits is even scarcer than it is for pensions. California, for example, had $59.5 billion in unfunded pension liabilities in mid-2008, according to the Pew study. Meanwhile, the state faced a $62.5 billion gap for health care and other non-pension liabilities. New York's public pension liabilities were fully funded in mid-2008.

But the Empire State didn't have the same foresight regarding its $56.3 billion public-employee healthcare liability, with none of it funded at the time.

One ray of hope for states seeking to bridge their health care funding gaps: Unlike pension benefits, which are often constitutionally guaranteed, states have considerable leeway in adjusting medical benefits and thus the ability to reduce the liability side of the equation.