Ohio Is Also Scrambling to Get On to the Foreclosure Rescue Lifeboat
September 24th, 2009
Like the other states Ohio too is scrambling to get on to the foreclosure rescue lifeboat. To save America a stimulus programme is essential. As the economy is tottering and tax revenue is sharply falling the governors and the mayors across the country are in queue asking the new government of Obama and the new Congress for billions of dollars to bail them out from the foreclosure tsunami. If something is not done by the federal government the local administration will falter in its services and unemployment will increase.
In 2008 Ohio noted 100,000 job losses. Governor Ted Strickland (Democrat) and his team are busy trying to find out ways to put pressure on the federal government and get sizeable grants. The governor said that there would be budget cuts this year to the tune of $640 million. He reiterated, “We’re not crying wolf. This is real.” Since the last four decades the state has not seen such erosion in budget deficits.
Strickland has been in close contact with the present White House Chief of Staff, Rahm Emanuel and has asked him for $5 billion.
Obama has been for the stimulus package despite the fact that it will lead to further deficits in the federal budget. It is justified by the fact that it would give an impetus to the economy. Vice President Joseph Biden also promised tax cuts for the middle class apart from spending money on job creating positive works like improving roads, bridge and water systems. He referred to the stimulus package as the new government’s “most urgent order of business.”
Budget specialist of Community Solutions based in Cleveland said, “There is no question about it. At this point in the financial crisis, federal aid is the only lifeline left for Ohio.”
Things Ohio government spends on are becoming more and more expensive like Medicaid. In 2007 it ate up 24.2% of the general fund of the state amounting to $4.3 billion. Four years previously it was 20.5% calculating to $3.7 billion. Another problematic issue is of helping smokers to quit the habit by making grants. Last year the amount had been $930,000.
The president of Breathing Association (non-profit) opined that the state would have to pay more for “sicker people who are going to need increased Medicare and Medicaid …” It is a dilemma because the money is important to help people get off drugs.
- Bouncing Cheques Issued by Title Companies Lead to Foreclosures
- Increase in Foreclosures Prompting Class Action Legal Suits
- Avoiding Foreclosures by Walking Away From Loans are not Without Problems
- Foreclosure Assistance Being Taken on Tour by Housing Advocate
- Washington Mutual, the Symbol of the Foreclosure Crisis, Continues to be in Trouble
- The Consequences of not Paying Mortgages Can be Grim
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