Posted on 12/08/2008 7:24:08 AM PST by dennisw
41 US States Face Bankruptcy In 2009
A recent study by The Center on Budget and Policy Priorities revealed that 41 states are facing severe budget shortfalls for 2009. Some states are worse off than others, with California ($31.7 billion) and Florida ($5.1 billion) leading the deficit pack. In all, the 41 states are currently facing a $71.9 billion budget shortfall. The key word here is “currently,” since a similar study was conducted by the same group only three months earlier, at which time “only” 29 states were predicted to face shortfalls of a “mere” $48 billion. As the recession deepens, so will the state’s budget problems, turning this “budget crisis” into a humanitarian disaster. Projections have already been made for a $200 billion shortfall by 2010.
These deficits have already transcended the computer screen of the statistician into real suffering of the most vulnerable sections of society. In dozens of states across the country, vital services are being cut to the elderly, disabled, the poor, and recently unemployed. Teachers are being cut from schools and tuitions are rising. Workers from state construction sites are being laid off, while social service employees suffer a similar fate. Non profits are closing their doors.
Most likely, these pains only mark the beginning. Many states have a “rainy day fund” of some kind that they use to plan for such crises. These funds are already depleted, or certain to dry up quickly, with “hard decisions” now having to be made. This is especially troubling when one considers that, in many cases, state cutbacks made from the 2001 recession remained in place. Not to mention that successive presidents have successfully plundered federal social programs. The new, extraordinary state budgets that are being drawn up to address the current deficit crisis will essentially destroy the social safety net for millions of people, including access to daycare, food stamps, welfare, and basic medical services. The fact that the federal budget is in even worse shape, and will likely choose to follow a similar route of massive cuts, makes future predictions of social calamity all but certain.
The options available to states to respond to budget crises are limited since states are not allowed to run deficits; they must solve their budget problems immediately. Nearly every state government is reacting to the crisis in essentially the same way: by cutting essential services and raising “secondary” taxes (alcohol, cigarettes, gas, etc). In reality, after spending their reserve funds, states have only two viable options: cutting spending and raising taxes.
What happened to all the tobacco settlements they received. And if true 41 states are bankrupted or need funds than that includes many red states...what is wrong with those red states????
Psst. Cut spending, Governors.
I only hope that New York goes first.....
the illegal alien parasites, at least in california have caused this. the deficit every year is exactly what it costs to keep them here.
ping
Starting
GLOOM AND DOOM ping list...freepmail me if you want on. This will be an economics with some geo-political ping list
several Red states have joined the blue states recently. NC is run by Dems, OH is run by Dems. VA is run largely by Dems. FL may be on it’s way if the trend does not reverse.
Plus, we cannot assume all GOP run states are well run. Politicians are politicians, and most will spending and spend until there is no more money left for new spending.
the decline of the united states is already in full motion. our influence and superpower status will decline more and more each year.
deport the 30 million or so illegals that are draining every system we have....
That is true but it is still disappointing especially since “red” states and politicians are supposed to set the example which I know they have been failing miserably lately but I thought at least on the local/state level they would be doing better.
Quickly men, fan the sails!
Gee, thanks.
No, California will be first.
Plus, we cannot assume all GOP run states are well run. Politicians are politicians, and most will spending and spend until there is no more money left for new spending.
41 states are not going to go bankrupt but they will have to take strong medicine
Cutting state budgets
Jacking up your taxes through the roof!
Look for counties and cities to do the same
Borrow more??? Sorry but the credit markets are jammed, easy credit is no more
Cutting spending isn't on the table. States will do what they always do: increase spending and raise taxes.
They can't cut spending on all of those poor, distressed, democRAT voters! Why, how else would the democRATS remain in the majority? They just can't stop buying votes like it was discretionary spending, these are necessary services that maintain their power base. /sarc
2, For coastal states and several interior states, large amounts of revenue is available by drilling and/or processing oil. Go for it.
3. Quit wasting their tobacco and lottery money and put it to uses it was promised.
Little ole WV is one of 7 states with a budget surplus. Our (believe it or not) Democrat governor put back a surplus for a “rainy day”. Of course he is a “conservative” Democrat, a rare animal. I think he’s a stealth Republican who knew he couldn’t get elected with an R after his name.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.