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VOICE ONE:
American states are struggling with their worst financialproblems in about sixty years. I’m Steve Ember with PhoebeZimmermann. Today we report about money troubles in the fifty stateson our VOA Special English program, THIS IS AMERICA.
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VOICE TWO:
American states are facing hardfinancial times. They are struggling with their worst money problemssince World War Two. Their main support, the federal government, ispaying for damages caused by the terrorist attacks of Septembereleventh, two-thousand-one. The federal government is paying forprotection against further attacks. It is paying for wars inAfghanistan and Iraq. The states say all this leaves them withoutthe money they need to provide for their citizens’ needs.
States depend on federal money for help called grants-in-aid. Thestates then are responsible for helping their local governments andagencies.
VOICE ONE:
The states lack thousands of millions of dollars at a time whentheir citizens need help the most. The American economy is weak.Last month, for example, the unemployment rate reached its highestlevel so far this year. Many companies are closing. Or they havesuspended workers. Millions of Americans have lost money inretirement plans and stock-market investments. Millions of othershave no insurance plan for financial help for medical needs.
The states also have more people to care for these days. Thenational population count of two-thousand showed that only theDistrict of Columbia did not gain population. Some states, likeNevada, grew at a huge rate. In some areas the recent arrival ofmany people from foreign nations has greatly increased demand forsocial services. New York, America’s most heavily populated city, isunder intense pressure to provide for poor people. So is LosAngeles, California, the second most populous city.
VOICE TWO:
The states’ lack of money shows itself in many ways. For example,some teachers in the state of Oklahoma are cleaning schools andpreparing food. The educational system cannot pay for cleaningworkers or cooks. Big states like Texas and California are releasingthousands of prisoners before their sentences are ended.
Over just two years, students are paying almost twenty percentmore to attend state colleges in Nebraska. And the state has stoppedproviding health care for almost twenty-five- thousand mothers whoare poor.
Other states are closing parks. They are cutting the operatinghours of libraries. Roads are not being repaired. Some publictransportation has been withdrawn. A small town in Michigan isconsidering selling space on their police cars for sales messages.
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VOICE ONE:
The states currently face cutting about seventy-five thousandmillion dollars from their budgets. That is for this year and nextyear. In the future many states will need more money for almost alltheir services. They must provide their growing populations withroads, education and social services. They must help provide forhealth and health centers.
States also must try to make their citizens safe from terroristattacks. State officials say the federal government has given themmany security responsibilities. But they say there is not enoughmoney to pay for them. In some states, for example, police and fireforces are being reduced. This is true although these officials arethe first to respond in case of terrorism.
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VOICE TWO:
Every American state has an organization that makes laws. All thestates except one have a senate and a house of staterepresentatives, delegates or assembly members. Only Nebraska hasone just legislative house.
Most states’ agencies ask the governor for the money they want.For example, the motor vehicle department asks for whatever amountit needs to operate. The governor considers all such requests. Thegovernor then proposes a state budget and sends it to thelegislature.
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Lawmakers must decide about all the proposed amounts. Thelegislators debate. Usually, they must compromise. This is often apainful process. But after awhile they pass a budget. This measuregoes to the governor to sign or reject.
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States receive income from other sources besides the federalgovernment. States tax tobacco products, cars and individual andcompany incomes. They tax gifts, payments to workers and the use ofnatural resources. But almost forty states are saying they expectedtoo much money from these sources.
The law requires most states to pass a budget by the end of June.The budget must be balanced. States usually get help from federaltax returns. But last year they did not get this help. If thishappens again, experts say many states are in deep trouble.
VOICE ONE:
Twenty-seven states cannot raise the money they have budgeted.Thirty-four states are having to spend more money than they planned.Most blame this on health care programs, especially those for thepoor. Many federal programs make costly requirements of states forhealth care. For example, the Americans with Disabilities Act saysstates must help poor people who need long-term medical care. Thisis costly.
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Common solutions exist for the problem of too little money fortoo many public needs. One is to raise state taxes. Another is toborrow money.
The eastern state of Massachusetts has been facing financialcrisis. It expects to fall three-thousand-million dollars short ofits budget for two-thousand-four. Massachusetts’ money problems arethe worst in ten years. Still, legislators say there is littlechance tax increases will pass this year.
The budget cuts that some lawmakers have called for demonstratethe limitations that may affect state citizens. Betweenthree-thousand and five-thousand state workers could be suspended.Colleges and universities could lose one-hundred-seventy milliondollars in aid.
Massachusetts provides reduced drug costs for eighty-thousand oldpeople. This program could be reduced by ninety-seven-milliondollars.
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As you might expect, angry activists immediately condemned theproposals. They point to the suffering they say the cuts would causeold people, sick people and students. Angry people throughout thecountry are demanding a solution to their states’ money problems.
Some public officials believe they have found a way to deal withthe problems. They believe gambling – games of chance — can rescuestate budgets.
For years, many public officials wanted to ban or severely limitgambling. Some said games of chance were immoral. Others worriedbecause gambling can become an addiction – something people cannotcontrol. Gambling addicts sometimes lose all their money, causingdeep harm to their families and society. But a growing number ofstates are using gambling to help their financial problems.
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Gambling in the United States is estimated to be about afifty-thousand-million-dollar business. Recently about half thestates have decided to try to get some of this money for theirservices. For many years states taxed gambling to limit or end it.Now, states want gambling so they can tax it for profit.Supporterssee gambling as a way to raise money for better schools and betterteachers. They believe it can make their states richer and moreproductive. They see gambling as a rescue for people in need.
VOICE ONE:
Some state lawmakers have proposed more gambling clubs andexpansion of state competitions called lotteries. They also aretrying to get bigger payments from American Indian gambling clubs.Gambling provides important financial help for many tribes. Indiansare permitted to operate these clubs under a nineteen-eighty-eightact of Congress.
VOICE TWO:
The Maryland House of Delegates has rejected a slot-machineproposal by Republican Governor Robert L. Ehrlich Junior. But thedelegates also voted to study placing these machines at horse-racingcenters in the future. Players put metal money-coins – into slotmachines. In return, they get a chance to win more money.
A Maryland delegate who opposes slot-machines at the racingcenters says they are a bad influence. He says this is trueespecially for poor people. This legislator believes increasingchances to gamble make poor people even more poor.
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Economists argue about gambling and taxes and loans to correctstates’ financial problems. One expert says there is only onesolution. For the states to recover financially, he says the wholenation must make a strong economic recovery.
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VOICE TWO:
This program was written by Jerilyn Watson. It was produced byMario Ritter. I’m Phoebe Zimmermann.
VOICE ONE:
And I’m Steve Ember. Join us again next week for another reportabout life in America on our VOA Special English program, THIS ISAMERICA.
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