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Economy
Budget 'disasters' await ten US states
2009-11-13
Nine US states have joined California in the club of the worst financially-hit states which face a fiscal 'disaster' over America's reeling economy, a report says.

A new report published by the Washington-based research center on national advances in various fields, Pew Center, has portrayed a bleak outlook for the state of economy in the US and listed ten large states to be in 'grave' need of financial plan adjustments in order to escape insolvency.

Pew's Wednesday analysis has raised the alarm for California, Rhode Island, New Jersey, Arizona, Florida, Illinois, Michigan, Nevada, Oregon and Wisconsin, urging local legislatures and administrations to take strong action in an effort to prevent a 'looming' economic catastrophe.

The widening double-figure budget gaps, increasing job losses and high property foreclosures have amounted to the states' teetering economies that constitute one third of US financial power.

The study, named 'Beyond California: States in Fiscal Peril', also counts single industry economy, history of budget deficits and legal obstacles in the way of tax increases as other contributors to the ongoing financial woes that have hit America in the aftermath of the 2007 economic recession.

US economy has had its worst nightmare since 1930's Great Depression, with some states considering mortgaging Capitol buildings or cutting public expenditures such as public schools and healthcare costs in order to help ease the economic havoc.

The need for cash in the frozen credit market forced the California government to print IOUs, or payable notes, earlier in 2009 to help pay out bills.

A number of other states, however, came up with local money in a bid to inject capital into their cash-strapped economies.

Despite a 0.9 percent gain in economic transactions during the third quarter of the 2009 fiscal year, financial woes in the world's largest free market system continue to defy the US exit from recession due to the hundreds of billions lost in the latest economic downturn.
Posted by:Fred

#7  recycled rubber repaving is a great biz: removes the refuse, uses it for new paving, saves money. We encourage it in San Diego
Posted by: Frank G   2009-11-13 20:27  

#6  Our local Disasteremocrat in residence has taken money specifically collected to deal with recycling old tires and put it into the general fund, where it immediately disappeared. Just a few days ago there was an article in the local paper that discarded tires are "piling up", and there's no more room to store them. There are several ways to take care of discarded tires - retread the best, grind the rest up for pothole filling (works better than plain asphalt), even recycle the rubber through a rather complex process that's still cheaper than other solutions. Yet our state government isn't bright enough to deal with the problem, and has no money to do anything, because it was siphoned off to meet "general fund" requirements - a violation of state law. We really need to make an example of these spendthrift people.
Posted by: Old Patriot   2009-11-13 20:09  

#5  If it gets bad enough some state legislatures may actually be forced to cut their budgets! Really!
Posted by: DMFD   2009-11-13 18:52  

#4  Want to balance the budget? Attract industry w/ with decent paying jobs. Too bad gov trade, tax, environmental and social policy is geared toward exporting those same industries and jobs to other countries.
Posted by: ed   2009-11-13 13:08  

#3  Ta'hell with this infomercial study, stating that the only way to close the budget is to raise taxes. Lower taxes, 10 payments of $5 beats 3 payments of $15.
Posted by: swksvolFF   2009-11-13 13:00  

#2  If NY didn't make that list those other states are awaiting disaster indeed.
Posted by: lotp   2009-11-13 07:26  

#1  OTOH CHINESE MIL FORUM > WHO SAYS INDIA IS BROKE: SWISS BANKS REVEAL INDIA HAS MORE MONEY THAN THE REST OF THE WORLD [SWISS "Black Money" > INDIA, NOT USA, ranks #1 in TOP FIVE ahead of RUSSIA, UK = BRITAIN, UKRAINE, + CHINA.

Yokay Switzerland, I'll bite, UKRAINE???
Posted by: JosephMendiola   2009-11-13 01:07  

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