The clear consequence of the recommendations given by the American Legislative Exchange Council (ALEC) can be felt in Kansas. The recommendations advised for a cut and limit on revenue and spending. This has taken a great toll on Kansas since the policies were implemented. Kansas has been known for its economic failures in the recent times and this has made leaders from places like Nebraska, Oklahoma and so forth to distance themselves from Kansas and its failures.
The state of Kansas
Kansas fairs badly in virtually every way. This includes its state revenue which is obviously plummeting, decline in employment and reduction in state’s credit rating. The state now finds it very difficult to fund and finance schools, public services and health care because the tax cut has eaten into about 8 percent of the funds used for these purposes and the data at hand even show that this will rise to 16 percent in five year period if nothing is done to reverse the tax cut.
Inability to fund schools
The global recession which hit virtually every nation of the world had a great toll on US schools as the government made a cut instead of funding schools and libraries. However, most US states have restored school funding after the recession. The situation is clearly different in the case of Kansas. Kansas continues to cut education funding on university libraries, health care sectors and so forth.
Kansas tax cut benefits those at the top
The sad part of it all is that the ordinary Kansans hardly benefit from the tax cut. The tax cut goes to those at the top in the state whereas the taxes on the low income families are raised. In fact, ordinary Kansas seems to benefit virtually nothing from the present economic situation of the state.
North Carolina cuts state unemployment insurance benefits
The law makers at North Carolina got it all wrong here. The effect of cutting the unemployment insurance benefit is quite obvious on the state. The law makers argue that cutting the unemployment benefits will cause a reduction in unemployment. However, the reverse is the case as it led to a reduction in the participation rate of the labor force. People who lost the benefits simply lost the hope of looking for work. Kansas on the other hand reduced the benefit but North Carolina cut it all out which made the state ineligible for Federal emergency benefits.
Together with other 22 states, Kansas and North Carolina chose not to expand their Medicaid coverage despite the fact that the federal government will cater for virtually all the costs involved. The Federal government pledged to cater for 100 percent of the cost for the first three years and then from 2020 and onwards, 90 percent. This simply falls down on the millions of uninsured adults in the states.
Obviously, the economic situation of Kansas and North Carolina will even grow worse if nothing is done about these issues.