Which state will fall first?
When you think about states on the verge of really bad economic meltdown, the first one to pop to mind is California. But that is only because California is the biggest and has gotten the most press. It is a sad, but true fact that other states are in the same boat and are sinking right along with California.
Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin join California in the fiscal trash heap. You will notice that each one of these states has at least one major city in deep trouble. But local governments aren’t the reason for the troubles in the states.
The fact is each of these states has suffered from the same maladies that have crippled California. Built in budget constraints, high unemployment and run away home foreclosures are central reasons for all of these states fiscal problems.
From Earthlink net:
SACRAMENTO, Calif. – 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.
Read the rest here http://enews.earthlink.net/article/us?guid=20091111/4afa52e0_3421_13345200911111482730411
The saddest part of this article comes at the end when Gov. Arnold Schwarzenegger warns that the toughest cuts are still to come.
