Saturday, June 06, 2009

Spendthrift Sunbelt States

City Journal reports:
in terms of flagrant profligacy during the good times, Arizona, Nevada, and Florida—those low-taxing, low-spending, every-man-for-himself states—have put New York and California to shame. Between 2000 and 2008, Arizona state spending (after inflation) grew by 41 percent, outpacing population growth by 12 percentage points. In Nevada, spending grew by 70 percent, outpacing population growth by 40 unbelievable percentage points. Only Florida managed to keep general spending growth roughly in line with population growth. But that state kept its population growth artificially high—and its spending growth artificially low—by using its state-guaranteed property-insurance program to subsidize torrid real-estate development in natural-disaster-prone areas where people otherwise would never have been able to afford to live. When disaster strikes, as it must, Florida—and the rest of us—could be on the line for billions of dollars.
You'll want to read the whole article. Can these states handle California values that come with former California voters?