![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
![]() |
|
![]() |
#1 |
AMA Supersport
Join Date: Nov 2008
Location: Richmond, Tx
Moto: '10 Tuono Factory
Posts: 4,569
|
![]()
http://money.cnn.com/2009/11/11/news...tes_economies/
10 states face financial peril Dropping tax revenue, rising unemployment and yawning budget gaps are wreaking havoc in states from Arizona to Wisconsin, a new report shows. NEW YORK (CNNMoney.com) -- The same economic pressures that pushed California to the brink of insolvency are wreaking havoc on other states, a new report has found. And how state officials deal with their fiscal problems could reverberate across the United States, according to the Pew Center on the States' analysis released Wednesday. The 10 most troubled states are: Arizona, California, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin. The list is based on several factors, including the loss of state revenue, size of budget gaps, unemployment and foreclosure rates, poor money management practices, and state laws governing the passage of budgets. These troubles have forced these states -- as well as many others -- to raise taxes, lay off or furlough state workers and slash services. These actions can slow down the nation's recovery, especially since these 10 states account for one-third of the country's population and economic output. "Decisions these states make as they try to navigate the recession will play a role in how quickly the entire nation recovers," said Susan Urahn, managing director of Pew Center on the States. Strapped cities lay off workers, cancel projects In a separate study released Wednesday, the Center on Budget and Policy Priorities found that states will likely have to make steep cuts in their fiscal 2011 budgets, which start next July 1 in most states. That's because the critical federal stimulus dollars will run out by the end of 2010. These cuts could take nearly a percentage point off the national gross domestic product and cost the nation 900,000 jobs, the study found. 10 troubled states Here's a summary of what Pew found is plaguing each of the states: California: The Golden State's housing collapse -- and resulting unemployment surge -- has plagued the state's economy. The weakening economy prompted revenue to fall by nearly a sixth between the first quarters of 2008 and 2009. State lawmakers have limited ability to deal with California's massive budget gap due to several voter-imposed restrictions, including requirements that all budgets and tax increases pass the legislature by a two-thirds majority. Arizona: The state depends heavily on a growing economy to bring in tax revenue, and lawmakers don't have a lot of leeway to address budget deficits thanks to voter-imposed spending constraints. Lawmakers relied on one-time fixes to balance its budget instead of making long-term changes. Rhode Island: The Ocean State has among the highest unemployment rates in the nation and among the highest foreclosure rates in New England. High tax rates, big budget deficits and a lack of high tech jobs are hurting its chances to pull out of the doldrums. State government has a poor record of managing its finances Michigan: The state never climbed out of the recession that started in 2001, and matters only became worse during the Great Recession. Two of the Big Three Detroit-based automakers went bankrupt in 2009, sending shockwaves through a state on track to lose a quarter of its jobs this decade. The recession accelerated drops in state revenue, and has left Michigan's government trying to deal with today's problems on a 1960s-sized budget. Nevada: Nevada is one of the recession's big losers as its gaming-based economy suffered. Year-over-year revenue has fallen for two consecutive years, a record. But changing tax laws is tough because some are written into the state constitution. Oregon: Oregon's leading industries, such as timber and computer-chip manufacturing, have been hit hard in the recession. Lawmakers have approved more than $1 billion in new taxes to keep it afloat. But voters in January will have the final say on another $733 million in new income taxes. Florida: For the first time since World War II, Florida's population is shrinking -- bad news for an budget built on new residents flocking to the Sunshine State. Lawmakers raised $2 billion in new revenue this year, but could face a similar shortfall next year. New Jersey: The Garden State, which has been plagued by years of fiscal mismanagement, spends more than it collects in revenue. The collapse of Wall Street, which supports about one-third of New Jersey's economy, has only made matters worse. Illinois: Since the last recession earlier this decade, the state piled up huge backlogs of Medicaid bills and borrowed money to pay its pension obligations. The state's current budget still relies heavily on borrowing and paying bills late. Wisconsin: Wisconsin has a long history of budget shortfalls. It also borrows frequently to cover operating expenses, among other measures. Unemployment is climbing as manufacturing, the state's largest sector, sputters. More stimulus needed Pew, a left-leaning advocacy group, says the states need additional federal fiscal relief to avoid budget cuts that will hurt both the economy and people. State and local spending accounts for about one-eighth of the GDP. States received billions of dollars in funding from the Obama administration's $787 billion stimulus package, including $87 billion for Medicaid and $48.3 billion for maintaining education and other key services. Budget projections show that states could face deficits as large as $260 billion in 2011 and 2012 after stimulus funding is exhausted. State economies usually take up to two years longer to recover after the nation's fiscal health begins to improve. New budget cuts and tax increases "will be a serious drag on the economy at just the wrong time," said Mark Zandi, chief economist at Moody's Economy.com. First Published: November 11, 2009: 1:00 PM ET ![]() http://money.cnn.com/news/storysuppl...pmap/index.htm ![]()
__________________
ΜΟΛΩΝ ΛΑΒΕ 2014 GROM! 181cc of FURY 2010 Aprilia Tuono Factory - SOLD 2009 SFV Gladius - SOLD 2008 Hayabusa - SOLD. |
![]() |
![]() |
![]() |
#2 |
WSB Champion
Join Date: Nov 2008
Location: Anaheim, CA
Moto: 2009 Kawi ZX6R
Posts: 5,570
|
![]()
CA just made another 1% hike in the income tax. It is now 10.4%.
__________________
Train Hard Ron Paul - 2012 Mark of Excellence GM |
![]() |
![]() |
![]() |
#3 |
Raving Lunatic
Join Date: Nov 2008
Location: San Antonio, Texas
Moto: Concours 14 ABS, ZX6E
Posts: 902
|
![]()
Legalize, regulate, and tax marijuana. Problem solved.
__________________
Slow is smooth, smooth is fast. |
![]() |
![]() |
![]() |
#4 |
giggity
Join Date: Nov 2008
Location: socal
Moto: street, sumo & dirty
Posts: 1,071
|
![]()
Ditch the "tax" part of the equation and you're on to something.
All the liberal states are getting hammered. Who'd a thunk that running so many programs and spending so much every quarter would ever get you into hot water? |
![]() |
![]() |
![]() |
#5 | |
Raving Lunatic
Join Date: Nov 2008
Location: San Antonio, Texas
Moto: Concours 14 ABS, ZX6E
Posts: 902
|
![]() Quote:
Even without taxing it, think of the money you'd save on enforcement.
__________________
Slow is smooth, smooth is fast. |
|
![]() |
![]() |
![]() |
#6 |
token jewboy
Join Date: Nov 2008
Moto: CBR 900, KLR ugly ass duckling, Gas Man
Posts: 10,799
|
![]()
Bingo. Except there really is no major cost savings because they just diverted the existing law enforcement into other areas
__________________
![]() |
![]() |
![]() |
![]() |
#7 | |
Raving Lunatic
Join Date: Nov 2008
Location: San Antonio, Texas
Moto: Concours 14 ABS, ZX6E
Posts: 902
|
![]() Quote:
![]() Beyond the cost of cops and their toys, though, is the cost of processing violators through the system- imprisoning them, court costs, probation agents, etc. Those costs should definitely see a major decrease.
__________________
Slow is smooth, smooth is fast. |
|
![]() |
![]() |
![]() |
#8 |
I give Squids a bad name
Join Date: Mar 2008
Location: Fly Over State
Moto: 1996 CBR600 F3 (AKA the Flying Turd)
Posts: 4,742
|
![]()
As much as I feel the ban on Marijuana and other drugs should be repealed, I do not see that as the fix all to all of California's problems. Other states have the same ban on pot and aren't all fucked up like California.
I'm sure the tax structure of California is as fucked up as a football bat and scares businesses away.
__________________
![]() |
![]() |
![]() |
![]() |
#9 |
cruiser
Join Date: Nov 2008
Location: on the run
Moto: '09 HD superglide, 16 Yamaha FZ 09
Posts: 2,749
|
![]()
well we made the list. not surprising, many shops here are union and they refuse to boot the union so the companies are just closing up or moving south. we have been losing jobs at a regular rate for awhile.
|
![]() |
![]() |
![]() |
#10 |
Crotch Rocket Curmudgeon
Join Date: Nov 2008
Location: Here to integrity
Moto: Li'l red baby Ninja
Posts: 7,482
|
![]()
It might solve the problem. It would at the very least help everyone relax and forget about the problem.
__________________
Insert free thought here. |
![]() |
![]() |
![]() |
Bookmarks |
|
|