USAToday, weekend edition August 1-3, ran a front page article showing that state and local government spending has been rising three times as fast as revenues. State finances are nearing a crisis.

See: http://www.usatoday.com/printedition/news/20080801/1a_lede01_dom.art.htm?loc=interstitialskip

From June 2007 to June 2008, state and local governments have ADDED 264,000 jobs while the private sector LOST 431,000 jobs.

According to USAToday, “a large share of the new workers are teachers, police officers and prison guards”. “A key factor driving higher spending: new employees and higher compensation.”

The article is not clear on which teachers are included in governmental hirings (state colleges, city school districts?).

However, from my perspective, the more critical issue is that SPENDING, by state and local governments, as well as local school districts, appears to be completely insensitive to the economic condition of the taxpayers that are providing the revenue to meet this “binge” spending.

I recall a conversation I had with a Brighton administrator. I suggested that the teacher and administrator contractual increases were completely out of line with Monroe County businesses. His response (paraphrased): “We do not compare ourselves to business. We compare ourselves to other educational institutions.”

I see this response as insensitive to the prevailing economic environment of the taxpayers who are paying for the spending.