Report Says 10 States Heading Towards Budget Disasters
As an Illinois resident, I could not have been more thrilled to hear about a new study that identifies my state, along with nine others, as one that is hurtling towards fiscal disaster. From the Associated Press’ Judy Lin this afternoon:
A study released Wednesday warns that nine states are barreling toward an economic disaster similar to California’s ongoing fiscal crisis that has been marked by IOUs and budget-busting deficits.
The budget woes could mean higher taxes, accelerated layoffs of government employees, more crowded classrooms and fewer services in the coming year for some of the nation’s most populous states.
Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin join California as those most at risk of fiscal calamity, according to the report by the Pew Center on the States.
Double-digit budget gaps, rising unemployment, high home foreclosure rates and built-in budget constraints are the key reasons.
The analysis urged lawmakers and governors in those states to take quick action to head off a wider economic catastrophe. The 10 states account for more than one-third of America’s population and economic output, according to the report.
“While California often takes the spotlight, other states are facing hardships just as daunting,” said Susan Urahn, managing director of the Washington, D.C.-based center. “Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers.”
California leads the most vulnerable states identified by Pew, which describes it as having poor money-management practices.
Source:
“Report: 10 states face looming budget disasters”
Judy Lin
Associated Press, November 11, 2009
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