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Cash-poor states eager for Obama plan: At least 40 states are running deficits
WWLP-TV / The Associated Press ^ | January 2, 2009 | Beth Fouhy

Posted on 01/02/2009 11:08:04 AM PST by 2ndDivisionVet

President-elect Barack Obama's plan to jolt the economy by overhauling the nation's roads, bridges and transit systems has local officials clamoring for their share despite questions as to whether the program will actually work.

"California's fiscal house is burning down," state Treasurer Bill Lockyer declared recently after a California regulatory board halted financing for some 1,600 infrastructure projects because of the state's nearly $15 billion deficit.

California's woes are far from unique, as the deepening economic crisis has wreaked havoc on state budgets across the country. At least 40 states are running deficits, forcing governors to raise taxes and trim spending while postponing urgent repairs to roads, bridges, hospitals and ports.

"Because of the downturn in revenues, we're all starting to delay construction projects that are clearly maintenance. That risks public safety," said Maryland Gov. Martin O'Malley in an interview.

The rescue plan, which Obama has called "the largest new investment in national infrastructure since the creation of the federal highway system in the 1950s," is part of a broader legislative package intended to create up to 3 million new jobs, provide tax relief to middle-class families and help governors cover the soaring costs of education and Medicaid, the public health program for the poor. It is estimated to cost as much as $1 trillion.

Lest the plan seem too much a throwback to the public works projects of the Depression-era New Deal, Obama has added several 21st-century goals, such as expanding broadband into underserved areas and making public buildings more energy efficient. But the bulk of the plan is old-fashioned construction and repair, much of which would be done by union laborers.

(Excerpt) Read more at wwlp.com ...


TOPICS: Business/Economy; Extended News; Government; Politics/Elections; US: California; US: Maryland
KEYWORDS: 111th; agenda; bailout; bho2008; bhostimulus; bluestates; congress; economy; obama; pork; prevailingwage; recession; socialprograms; taxes; unions
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To: posterchild

>>>Which are the up to 10 states that are not running a deficit?

According to the Center on Budget and Policy Priorities, it’s now up to 44 states facing FY09 budget shortfalls. The six states ok for FY09 are Alaska, Texas, North Dakota, Wyoming, Montana and West Virginia. I’m guessing energy related natural resources are helping those states this year. With oil and natural gas prices coming down, they might face issues putting together FY10 budgets which start July 1.


21 posted on 01/02/2009 11:26:49 AM PST by NC28203
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To: 2ndDivisionVet

http://market-ticker.denninger.net/archives/703-Uh-Oh.....-Monetary-Flat-Spin.html
Paging Helicopter Ben, please pick up the white courtesy phone....
and
http://thecomingdepression.blogspot.com/2009/01/its-not-tax-refund-its-iou-its-coming.html

Thursday, January 1, 2009
Its not a TAX refund-ITS AN IOU! Its Coming Across America!


22 posted on 01/02/2009 11:27:39 AM PST by griswold3 (a good story is more compelling than the search for truth)
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To: 2ndDivisionVet

I say the overspending by the various staes has wreaked hvoc on their budgets. Combined with absurd levels of government beurocracy jobs and gov. unions. We are way overgoverned.


23 posted on 01/02/2009 11:27:46 AM PST by screaminsunshine (.)
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To: NC28203

The reason WV is in this group is because our “conservative” democrat governor put back a surplus for a rainy day.


24 posted on 01/02/2009 11:28:54 AM PST by WVNan
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To: Red Badger

I think you are right. Super inflation. Lowering the value of the dollar. Coming soon I fear.


25 posted on 01/02/2009 11:30:19 AM PST by screaminsunshine (.)
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To: NC28203

Thanks. Given that list, energy revenues are likely the ‘culprit.’


26 posted on 01/02/2009 11:30:25 AM PST by posterchild (Endowed by my Creator with certain inalienable rights.)
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To: Red Badger

It’s Bush’s fault, don’t you know. But don’t worry the One has the answer, the U.S. will just apply for a bailout.

We try for you, Argentina!


27 posted on 01/02/2009 11:31:24 AM PST by AmericanVictory
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To: 2ndDivisionVet

Indiana has a $1 Billion+ Budget SURPLUS, despite being one of the hardest hit by the downturn and fuel prices.

This is because the REPUBLICAN Gov. took steps 3 YEARS ago to stabilize the state’s budget.

We COULD be facing a big deficit next year, but we do have cash in the bank, so to say.

ELECTIONS HAVE CONSEQUENCES, and folks in states like Cali are going to have to pony up for all that “Free” stuff, or live without it.

Democrats DEPEND on the Illegal vote now, so this will just spiral deeper until the sheeple FINALLY wake up!


28 posted on 01/02/2009 11:39:25 AM PST by tcrlaf (You Voted DEMOCRAT-You'll Look GREAT In A Burqa!)
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To: Kozak

Kind of like the “service economy” where we all cook each other hamburgers.

Producing something tangible is so passe.


29 posted on 01/02/2009 11:42:35 AM PST by EEDUDE
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To: 2ndDivisionVet

That is no longer a requirement.


30 posted on 01/02/2009 11:42:39 AM PST by reg45
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To: 2ndDivisionVet
I think it would be interesting and instructive to further breakdown not only these 40 states but all 50 states of the union according to the size (or absence) of deficits, the partisan makeup of the state electorate and legislature and the unionization of the state work force. My guess is that you'll find that that the more Democratic and unionized, the greater the deficits.

In North Carolina, where state and local employees are almost never unionized (although we do have a Democratic leaning state government), the state budget deficit is small and manageable. I believe that Republican and non-unionized Texas also doesn't have much of a budget problem.

31 posted on 01/02/2009 11:43:52 AM PST by LuxAerterna
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To: NC28203

I think it’s because of conservative government in those states.


32 posted on 01/02/2009 11:45:25 AM PST by EEDUDE
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To: EEDUDE

Bingo!


33 posted on 01/02/2009 11:51:04 AM PST by WVNan
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To: LuxAerterna

From the4 Center on Budget and Policy Priorities
http://www.cbpp.org/9-8-08sfp.htm
I’, not sure you can make much of a generalization of Dem vs. Rep. While CA leads the pack, you have states like FL, GA, TN and SC with surprisingly large percentage deficits.
Sorry for the formatting (pr rahter lack of formatting).

Size of Gap Percent of FY2009 General Fund

Alabama $458 million 5.5%
Arizona $1.2 billion 11.9%
California $13.8 billion 13.6%
Colorado $604 million 7.7%
Connecticut $392 million 2.3%
District of Columbia $258 million 4.1%
Delaware $152 million 4.2%
Florida $2.3 billion 9.0%
Georgia $2.5 billion 11.7%
Hawaii $232 million 4.0%
Idaho $131 million 4.4%
Illinois $2.0 billion 7.0%
Indiana $763 million 5.8%
Iowa $100 million 1.6%
Kansas $141 million 2.2%
Kentucky $456 million 4.9%
Louisiana $341 million 3.7%
Maine $140 million 4.6%
Maryland $691 million 4.6%
Massachusetts $2.1 billion 7.3%
Michigan $145 million 0.6%
Minnesota $426 million 2.5%
Mississippi $24 million 0.5%
Missouri $342 million 3.8%
Nevada $536 million 7.3%
New Hampshire $50 million 1.6%
New Jersey $1.2 billion 3.7%
New Mexico $454 million 7.5%
New York $1.7 billion 3.0%
North Carolina $800 million 3.7%
Ohio $1.2 billion 4.2%
Oregon $142 million 2.1%
Pennsylvania $1.6 billion 5.6%
Rhode Island $372 million 11.4%
South Carolina $554 million 8.1%
South Dakota $27 million 2.2%
Tennessee $884 million 7.8%
Utah $640 million 10.4%
Vermont $66 million 5.4%
Virginia $1.1 billion 6.7%
Washington $509 million 3.3%
Wisconsin $346 million 2.5%
TOTAL $41.7 billion 8.6%


34 posted on 01/02/2009 11:52:43 AM PST by NC28203
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To: BenLurkin
“It'll leave that much less for them to pay in State taxes!”

And it won't help. As soon as states start getting a Fed bailout they will spend like drunken sailors. And why not? Big Brother has all the money anyway, they just let you borrow some of it.

Until governments develop a culture of fiscal responsibility this will only make the situation worse.

35 posted on 01/02/2009 11:55:25 AM PST by MPJackal ("From my cold dead hands.")
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To: NC28203
Indiana $763 million 5.8%,

Michigan $145 million 0.6%

Yea RIGHT!! LOL

36 posted on 01/02/2009 12:13:35 PM PST by sausageseller (http://coolblue.typepad.com/the_cool_blue_blog/)
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To: NC28203
Indiana $763 million 5.8%,

Michigan $145 million 0.6%

Yea RIGHT!! LOL

37 posted on 01/02/2009 12:13:55 PM PST by sausageseller (http://coolblue.typepad.com/the_cool_blue_blog/)
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To: 2ndDivisionVet

“Has anyone in Congress, the Statehouses or “Office of the President-elect” ever read the U.S. Constitution?”

Maybe a few, but they may have reading problems.


38 posted on 01/02/2009 12:16:12 PM PST by SumProVita (Cogito, ergo...Sum Pro Vita. (Modified DeCartes))
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To: NC28203
Michigan current budget deficit:The budget deficit in the General Fund and the School Aid Fund combined is currently about $920 million

Current Indiana budget deficit: $0

39 posted on 01/02/2009 12:17:26 PM PST by sausageseller (http://coolblue.typepad.com/the_cool_blue_blog/)
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To: 2ndDivisionVet

It would be interesting to see which party wielded the most power in the states with financial woes....


40 posted on 01/02/2009 12:18:01 PM PST by SumProVita (Cogito, ergo...Sum Pro Vita. (Modified DeCartes))
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