Stories like this will be appearing in newspapers and states around the country:
Michigan could see half of its road construction budget disappear by 2012, taking with it scores of repair projects and thousands of jobs in a state that relies heavily on its freeways.
A freefall in gas tax revenue over the last decade has the Michigan Department of Transportation projecting its repair budget for 2012 to be $626 million, a slice of the $1.4 billion spent in 2010. And Michigan barely escaped the same fate for 2011, said Bill Shreck, MDOT director of communications, when it faced an $84 million shortfall in its effort to qualify for federal matching funds.
From The Detroit News: http://detnews.com/article/20101123/METRO/11230311/State-to-curb-road-projects-as-gas-tax-revenue-shrinks#ixzz167A0G9Lu
This is not unique to Michigan. It is happening around the country.
Just two days ago I posted on the city of Hamtramck who was trying to file for bankruptcy but being prevented by the state of Michigan. Michigan was going to advance funds to Hamtramck in an attempt to dissuade them from filing. The two stories together tell you exactly what is going on — the Ponzi scheme is being kept alive only by switching monies from one place to another. Unfortunately, there is not enough money available and the music is about to stop for Michigan and many other states.
The can continues to be kicked down the road, and we are now seeing a lot of dead -ends. In Michigan the newly elected Republican administration and legislature is faced with the legacy of this can-kicking game, the end of the road. Bitter medicine is, of course, the consequence of years of spineless leadership. Michigan’s situation is typical of what we see nationally, and we’ll all be taking that medicine soon.