Is Pew right in saying that nine of the states are in a California-type budget crisis?
Nov. 11 (Bloomberg) — At least nine U.S. states face similar fiscal strains brought on by the global recession as those that left California on the brink of insolvency four months ago, according to the Pew Center for the States. Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin are dealing with declining tax revenue, resurgent deficits and increasing unemployment and home foreclosure rates, the center, a public policy research group, said in a report. All but New Jersey, Illinois and Wisconsin also have been hampered by a rule requiring a two- thirds legislative vote to approve tax increases, the report said. Lawmakers in California, which accounts for 13 percent of the U.S. gross domestic product, have slashed $32 billion from spending, cutting into funding for schools, universities and welfare programs and raised taxes by $12.5 billion in the last nine months to close budget gaps brought on by the recession. Governor Arnold Schwarzenegger s
SACRAMENTO, Calif. – In Arizona, the budget has grown so gloomy that lawmakers are considering mortgaging Capitol buildings. In Michigan, state officials dealing with the nation’s highest unemployment rate are slashing spending on schools and health care. Drastic financial remedies are no longer limited to California, where a historic budget crisis earlier this year grew so bad that state agencies issued IOUs to pay bills. A study released Wednesday warned that at least nine other big states are also barreling toward economic disaster, raising the likelihood of higher taxes, more government layoffs and deep cuts in services. The report by the Pew Center on the States found that Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin are also at grave risk. Double-digit budget gaps, rising unemployment, high foreclosure rates and built-in budget constraints are the key reasons. “While California often takes the spotlight, other states are facing hard
