The financial crisis in the United States, believe it or not, is worse than being reported. As our reported national debt accelerates rapidly beyond $11.3 trillion, our real debt is actually multiples of that. As reported in USA Today (May 29, 2009) our real debt when you include the liabilities of Social Security, Medicare, and the military / civil servant retirement programs places our debt in the vicinity of $63.8 trillion. The hole has become so deep that it is very difficult to even imagine how we as a nation can ever dig out of it.
If this information isn't depressing enough, a recent report (May 18, 2009) by the Center on Budget and Policy Priorities shows that at least 47 states are facing serious financial difficulties, shortfalls in their budgets. Across the nation the shortfalls projected from the states out to 2011 are estimated at $350 billion. With the immense spending and deficit at the federal level, and 47 states in serious financial trouble it is very difficult to visualize anything positive since we have compounding effects.
There is however, a small ray of hope. We have three states that seem to be managing their state's finances...Wyoming, Montana, and North Dakota. What is the common thread so we can all learn from their success while the rest of the nation is failing, in some cases miserably? Research on the success has shown that it starts with excellent leadership, with the respective Governors, Freudenthal (Wyoming), Schweitzer (Montana), and Hoeven (North Dakota). Not that it matters but they are 2 Democrats and a Republican. The first thing that you sense is that their approach is bi partisan. They really seem to care deeply about their states and their people and that is the overriding factor.
All three Governors were born in their state and are keenly aware of all aspects of business, agriculture, the economy, the people, and issues concerning their respective states. They all have excellent educational backgrounds, but just as important they have experience as managers and leaders. All three have experience in financial management, including project and budget control. Real world financial management experience should be a pre-requisite for any candidate that takes on the massive responsibility of running a state government. It is also readily evident that all three governors are strategic thinkers, not knee jerk reaction leaders. They all have a strategy and a plan for their states...a REALISTIC plan.
While many states plan on phantom income, placing it right in their budgets, Governor David D. Freudenthal of Wyoming shows how it should be done. Even though there were optimistic revenue projections, he planned for up 5 to 10% cuts in state agencies. Yet he has a plan, a strategy for the state and covers such important areas such as children and families, energy, education, health care, infrastructure, jobs, etc.
While managing his budget, Governor Brain Schweitzer of Montana is a leading national voice for clean and green American energy sources. He has created more jobs at higher wages than any time in the history of the state. While managing the budget he has nor only cut taxes, but given a $400 rebate to Montana homeowners. He has invested in education and children's quality health care. And it goes on from there.
Governor John Hoeven of North Dakota has a strategy on six pillars of growth: education, economic development, agriculture, energy, technology, and quality of life. He has been able to expand and diversify the economy, adding thousands of jobs. Personal income growth in North Dakota has outpaced the national average. North Dakota has a strong financial reserve, unheard of in today's economic climate. The current budget focuses on programs to stimulate the state's economy, including property and income tax relief, enhanced funding for education, and helping North Dakota families. It goes on and on with such things as renewable energy programs, Centers for Excellence that combines education and economic development, and more.
It is readily evident that at the Federal government level, as well as the state level, we are not doing it right as far as managing the financial condition of our country. Yet we have as examples three shining rays of how to do it right from the northwestern region of our country. It starts with the quality of our representation, as well as their backgrounds and experience to lead. Sound and realistic strategies and plans are needed. Financial management experience as well as common sense is required. Such basics as money out should be equal to or less than money in need to apply. (Dave Freudenthal cuts costs even when income looks positive.)
We have in the northwest three hero governors who are showing us how to do it right. The federal government and all states should learn from them.
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