Posted on 02/12/2008 4:26:38 PM PST by BGHater
Summary
At least twenty-five states, including several of the nation’s largest, face budget shortfalls in fiscal year 2009. Of these 25 states, specific estimates are available for 20 states; the combined deficits of these 20 states are expected to total at least $34 billion for fiscal 2009 — which begins July 2008 in most states. Another 3 states expect budget problems in fiscal year 2010, although some of those gaps may occur earlier than expected. Many of the other states have not yet released information about their fiscal status.
The bursting of the housing bubble has reduced state sales tax revenue collections from sales of furniture, appliances, construction materials, and the like. Weakening consumption of other products has also cut into sales tax revenues. Property tax revenues have also been affected, and local governments will be looking to states to help address the squeeze on local and education budgets. And if the employment situation continues to deteriorate, income tax revenues will weaken and there will be further downward pressure on sales tax revenues as consumers become reluctant or unable to spend.
The vast majority of states cannot simply run a deficit or borrow to cover their operating expenditures. As a result, states have three primary actions they can take during a fiscal crisis: they can draw down available reserves, they can cut expenditures, or they can raise taxes. States already have begun drawing down reserves; the remaining reserves are not sufficient to allow states to weather a significant downturn or recession. The other alternatives — spending cuts and tax increases — can further slow a state’s economy during a downturn and contribute to the further slowing of the national economy, as well.
(Excerpt) Read more at cbpp.org ...
Looks like 28 states with spending problems.
Let’s take all of the undocumented illegals out of these states and then estimate the budget?
Wait til RE prices drop another 40% in the West.
But Alaska, for the time being, is in the black. Maybe $7 billion in the black this year, but with $5 billion of unresolved debts in the State retirement program. In the black this year and maybe next year, but possibly never again after that.
Had to fix the headline. There's no crisis here. Of course, states will simply use this bad budgeting as a reason to hike taxes.
Stop throwing your money away on illegals.
Obviously they haven’t raised tax rates enough.
/sarc
Ahole states are worse than the Fed. After Bush’s tax cuts the states picked up the slack and started hiking taxes everywhere. Now they still can’t balance their budgets. I’m beginning to think the entire US needs a good enema to rid ourselves of parasite polticians and government drones.
Bush, McCain, and the establishment say we have to pay for those corporate profits.
Real estate prices may fall but I doubt you will see any reduction in appraisals and certainly not in Texas. My guess is that they will raise rates as other revenues fall.
LOL
LOL
|
TABLE 1: 20 STATES WITH PROJECTED GAPS FOR FY2009 |
||
|
|
Amount |
Percent of FY2008 General Fund |
|
Alabama |
$784 million |
9.2% |
|
Arizona |
$1.3 billion - $1.7 billion |
12.1 - 16.2% |
|
California |
$14.5 billion |
13.9% |
|
Florida |
$2 billion |
6.5% |
| Illinois |
$2.5 billion - $3.0 billion |
9.1 – 10.9% |
|
Iowa |
$350 million |
6.0% |
|
Kentucky |
$266 million |
2.9% |
|
Maine |
$57 million |
1.8% |
|
Maryland |
$550 million |
3.8% |
|
Massachusetts |
$1.2 billion |
4.2% |
|
Minnesota |
$373 million |
2.2% |
|
Nevada |
$565 million |
7.8% |
|
New Hampshire |
$50 million - $150 million |
1.6 – 4.8% |
|
New Jersey |
$2.5 - $3.5 billion |
7.6 - 10.6% |
|
New York |
$4.4 billion |
8.2% |
|
Ohio |
$733 million - $1.9 billion |
3.6 to 9.4% |
|
Rhode Island |
$380 million |
11.2% |
|
South Carolina |
$160 million |
2.4% |
|
Virginia |
$1.2 billion |
6.9% |
|
Wisconsin |
$300 million - $400 million |
2.2 – 2.9% |
|
TOTAL |
$34.2 - $37.5 billion |
8.0 - 8.8% |
“After Bush’s tax cuts the states picked up the slack and started hiking taxes everywhere”
Or, in some cases, raise “fees.” That is my favorite ploy.
Maryland “Freak State” PING!
Don’t worry, they will find a way to make us pay for their shortfall. they’ll charge more for parking tickets, hunting/fishing licenses, fines etc. Maybe add to the sales tax or increase the costs of motor vehicle registration/inspection ect.
Believe me, this is a far bigger problem for us than it is for the states.
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