Claremore Daily Progress

Top Stories

December 10, 2012

Fiscal cliff stalemate spurs anxiety in states

JEFFERSON CITY, Mo. — A plunge over the federal “fiscal cliff” may sound like a terrifying risk for many state officials anxiously watching as Washington struggles to avert automatic tax hikes and spending cuts set to start with the new year. Yet their greatest angst may stem not from the potential loss of billions of dollars, but the confusion surrounding it all.

The longer the White House and Congress remain at odds, the more difficult it becomes for governors and lawmakers who are trying to piece together their own budgets. Many states depend on federal grants to help finance education, environmental and community programs that are on the chopping block. Their economies are powered by military bases and defense contractors that could get whacked. And their state income tax revenues could rise or fall as a direct result of federal tax hikes.
All that of that is to say that states have a lot riding on the strained negotiations between national Democrats and Republicans over some way of raising revenues and reducing spending that would avoid a more drastic deficit-reduction plan, known as the “fiscal cliff” because it could send the country back into an economic recession.
“From a general economic standpoint, the sooner they could do something the better,” said Missouri budget director Linda Luebbering in a bit of understatement.
If nothing is done, states stand to lose $7.5 billion in federal funding for 161 grant programs subject to automatic spending cuts, according to the Federal Funds Information for States, a Washington-based organization that tracks the effects of policy decisions on states. The biggest of those cuts could come to federal aid for schools that teach large numbers of low-income students. Funding for special education, early childhood programs and food subsidies for women and children also could take sizable cuts.
If nothing is done, state economies could get jolted by an automatic $33.6 billion of spending cuts for defense contracting and military wages — hitting especially hard in places such as Virginia, California and Texas, according to the FFIS report.

Text Only
Top Stories
  • Students paint mural Catoosa High School artists paint mural to instill respect, inspiration

    Catoosa High School students, Devin Jackson and Spencer Plumlee, recently put the finishing touches on a mural that took more than a year to complete. 

    April 18, 2014 1 Photo

  • Local attorneys fight to eliminate judgment

    Claremore attorneys — Thomas H. Williams and Jack E. Gordon Jr. —   filed a petition Tuesday to vacate the $27.9 million judgment awarded to Material Service Corp. 

    April 18, 2014

  • Rogers County Water Dist. 16 receives grant

    Rogers County Rural Water District No. 16 received a $24,999 grant Tuesday to help finance expansion of the district’s water supply infrastructure.  

    April 18, 2014

  • Grand Jury recesses until June 24

    The multicounty grand jury charged with investigating accusations of misconduct by Rogers County officials recessed Thursday until June 24-26, saying it needed to hear from more witnesses before returning a finding in the matter.

    April 17, 2014

  • Harps Food opens new store in Inola

    On April 23, Harps Food Stores will reach a new milestone in their company’s history with the opening of its 75th store. 

    April 17, 2014

  • helping children Tri-County CASA seeks additional volunteers as child abuse cases increase

    From 2010-2013, Oklahoma has seen an increase in children entering foster care. According to Oklahoma Department of Human Services reports, approximately 11,000 children are in state’s custody because of child abuse or neglect — 4,000 in the Tulsa area alone and more than 100 in Rogers County.

    April 17, 2014 1 Photo

  • Judge refuses to dismiss Grubowski in DA suit

    A judge has denied businessman Myron Grubowski's motion to remove him from the defamation lawsuit filed by District Attorney Janice Steidley against sponsors of last fall's unsuccessful citizens petition for a local grand jury investigation of her  office.

    April 17, 2014

  • Controversial schools chief attracts crowd of opponents

    The field of candidates running for state school superintendent is unusually large — a sign of broad interest in what observers say is sure to be a referendum on the incumbent, Dr. Janet Barresi.

    April 17, 2014

  • Jennifer Hodges Claremont Elementary teacher named the winner of $2,500 classroom grant

    Jennifer Hodges, a fifth grade teacher at Claremont Elementary, has been named winner of a $2,500 grant through the Farmers Insurance Thank A Million Teachers program. The national initiative invites citizens to offer thanks to teachers, past and present, who have made a difference in their lives.

    April 16, 2014 1 Photo

  • Commissioners hire outside counsel

    The Rogers County Commissioners hired outside legal counsel Monday to contest the $28 million civil judgment paid to Material Service Corp.

    April 16, 2014