Bill Clinton: States budget poorly

PHILADELPHIA -- Former President Bill Clinton says states need to become more responsible budgeters.

Even though most states are required to balance their budgets, in practice they don't do it, and "years of irresponsible budgeting" have led to the current crisis, Clinton said Tuesday at a symposium in Philadelphia designed to bring attention to the eroding financial condition of state governments.

"We shouldn't let this crisis pass without using it as an opportunity to reform budget systems up and down the line," Clinton, a former Arkansas governor, said at the National Constitution Center. "And they essentially need to be more conservative and responsible."

He also expressed support for immigration legislation making its way through the Senate as well as an Internet sales tax, saying both would broaden the tax base. And he said states and cities should work to attract private investment to infrastructure projects.

Turning to Washington, Clinton lamented reductions in federal discretionary spending, especially the sequester, the term for automatic spending cuts that went into effect this year.

"The sequester shows you the consequences of the meat ax," he said.

He got no argument from Philadelphia Mayor Michael Nutter, who also addressed the State Budget Crisis Task Force symposium and said that federal cuts have seriously hurt city and local governments, hampering their ability to deliver essential services to citizens.

The sequester has transferred costs onto local governments, said Nutter, the immediate past president of the U.S. Conference of Mayors. In Philadelphia, he said, deep cuts to a program that helps homeowners avert foreclosure will potentially result in more blight. The school district, meanwhile, is facing an existential budget crisis that has forced it to lay off 3,800 employees and eliminate sports, music, art and all after-school programs, although a potential infusion of state aid may soften the blow before school starts.

"This is not a sustainable model for cities. The federal government cannot balance its budget on the backs of cities and local governments," said Nutter, a second-term Democrat.