In response, the Governor’s office reduced the number of government vehicles from 12,740 to 11,739. This has resulted in an estimated savings of $3.6 million dollars. Furthermore, the Governor has partnered with the Louisiana Property Assistance Agency (LPAA) to auction off the unneeded vehicles. So far this has produced a profit of $1,791,405 in addition to the aforementioned savings.

The elimination of these taxpayer subsidized perks is a good thing, especially in light of the municipal and statewide budget crises. It is also promising that Mayor Landrieu has announced the elimination of 464 take–home cars from the city budget. That this announcement comes on the heels of news that Ray Nagin wasted $1 million on the ill-fated hiring of a technology contractor only emphasizes the need for government streamlining and reduction. The mayor was dead-on in pronouncing the virtues of his decision. “The revised policy will save hundreds of thousands of dollars annually and is just another way we are streamlining government, eliminating waste, and more effectively managing city assets.”

One reassuring aspect is that Louisiana, for once, ranked at number one in something other than obesity, poverty, failing schools, etc. Along with Alaska, Louisiana’s cost of government day for 2010 was July 28^th, the earliest COGD in the nation. This is taken with a grain of salt, however, when compared to 2008’s national COGD of July 16^th. What we are witnessing is an incredibly dangerous slide into insolvent big government costs. The pace indicated by the month difference over two years is breathtaking, but only in a troubling way. ATR diagnoses in detail the many root causes of this increase in government costs. Two particularly interesting explanations include increase in government employee payroll and taxpayer migration. Because Louisiana has one of the highest government worker rates per capita, as well as a state income tax, it’s extremely surprising to see our state ranked at the top.Either way, the report confirms that our nation is embarking on a downward spiral into a black hole of government costs and endless growth. Louisiana is just the state slowest in teetering over the brink.

As of January 22, the current public debt totals more than $12.3 trillion. The Congressional Budget Office reports that if current laws and government spending remain the same, the budget for FY 2010 is estimated at more than $1.3 trillion.

During the Middle Class Task Force meeting, Vice President Biden and President Obama announced new tax cuts to help American middle class families. The following day, Obama proposed a freeze on spending.

Tax cuts generally increase consumer spending. This year American families will most likely use additional savings to pay off their debts. This also happened following last year’s economic stimulus.

A freeze in government spending would help reduce the federal deficit. However, the announced budget freeze accounts for only 17% of the budget, leaving out large sectors with increasing costs (Medicare, Medicaid, military spending, and homeland security.)

The rate of future economic growth looks increasingly uncertain. New laws reducing government revenues and increasing government spending could still increase the federal budget deficit. By 2020 the federal debt could reach 67% of the GDP, the highest level since the 1950s.

Where do we go from here? There are no easy answers. For a look at some of the options, take a look at the CBO’s suggestions for decreasing the federal deficit.