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More speeding cars being pulled over.According to the PittsburghChannel.com, state police from Pittsburgh were pulling over cars, a lot of them, on interstate 79 this past week without prior warning of a crackdown. The state police stated that over 100 cars were pulled over and cited for going over 80 miles per hour in a 55 mph zone. Additionally, several of us have seen more traffic police on the PA turnpike as well. Even drivers who are not grossly speeding over the limit have seen more tickets. In a recent article on speed limit cushions in the USA Today it was suggested that the “cushion” most police forces allow over the speed limit is being tailored back and more speeding tickets are being issued nationwide. Why would there be a reason to issue more tickets and civil fines?
Job Losses and Home Foreclosures.What was happening in the last part of 2008? The depth of a disastrous recession hit so hard that the unemployment and foreclosure rates rose to record levels, and these problems have continued into 2010. Those people who were laid off in 2008 and 2009 would normally have their taxes due now, but their diminished income results in much less tax being paid. According to the Economic Policy Institute: “After drawing down rainy day funds, states face a two-year $357 billion budget shortfall for the fiscal years 2010 (which began in July 2009) and 2011, while local governments face an additional $80 billion shortfall.”
With unexpected expenses and lower tax revenue, the cost of keeping their government services operating is becoming overwhelming for many areas with high unemployment.
What options do local and state governments have?In order to stay solvent a government under financial distress and a budget deficit needs to make a decision. They can:
Why there is only one choice many governments can make. If your taxes were raised right now, would that create an additional hardship for your family? What if the police and fire forces were reduced, your trash wasn’t picked up anymore, or your parks were closed? How about if your municipality went bankrupt and the government closed altogether? If any of these things happened and your current elected officials asked you for your vote this November what would you say? Now ask yourself who could be angry about a guy driving 92 miles per hour getting a ticket? What about the citation issued to the homeowner with overbearingly tall grass or garbage scattered about? Any problem with drunk drivers paying a little more or illegal parkers finally getting cited? Probably not. It is a safe and acceptable way to raise money that most of us completely agree with. This wouldn’t be the first time speeders have been targeted as a revenue source to make up budget shortfalls. Georgia started taxing speeding tickets this year. The government raises the money needed, the community’s services continue, and the law breakers and benders pay for it.
Be on your best behavior. If the average ticket cost was, perhaps, $150 on April 27 when the state troopers issued the citations on interstate 79, there was well over $15,000.00 raised that afternoon. Certainly, that will benefit all of us in Pennsylvania this month. However, now seems to be a good time to be on your best behavior. After all, speeding tickets may be part of the government’s new budget, but is it part of yours?
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| Bowman's Money College, located in Penn Hills, is published to provide personal insights and opinions on saving and managing money, budgeting, and reducing debt. Also provided are ways to start a small business, decrease your tax liability, and build wealth. Bowman's Money College does not give professional accounting, legal, or investing counsel. The ideas, examples, and advice presented on this site are solely the opinion of the author based on his personal experiences. 412-376-SAVE © All rights reserved. Contact at LinkedIn. |