Posted on 12/03/2020 5:26:42 AM PST by 11th_VA
State and local government budget shortfalls could reach a combined $450 billion over the next three years even as the economy recovers.
By the dubious standards of government finance, the past decade was almost a model of prudence in statehouses across the U.S. After the financial crisis of 2008—a rare instance when collective state revenue fell—many states created new (or supplemented existing) “rainy day” funds. As a result, state and local governments entered 2020 with a combined $119 billion in such savings, according to the Brookings Institution. But the economic slowdown caused by COVID-19 has blown up budgets from coast to coast, and the impact will be lasting. Moody’s Analytics estimates that state and local government budget shortfalls could be a combined $450 billion over the next three years even as the economy recovers. Below, a state-by-state breakdown of the looming deficits...
(Excerpt) Read more at fortune.com ...
I don’t suppose they discuss California or New York
The 2nd graphic (if you can post it) shows the deficit after using rainy day funds ... that’s how I got LA, FL, and NV ... makes me want to buy gold
NY -10%??
Illinois -5% to -10%??
California -5% to -10% ??
What, have they been smoking weed while doing this? Probably not taking into account COVID or the RIOTS.
Good graphics at the link - LA, FL, and NV most at risk ...
...
You’re no good investment publications anymore. Fortune Magazine is the equivalent of Bloomberg. Is basically the equivalent of Wired Magazine everything in their talks about how wonderful green energy is and so forth. Sorry bro you have been duped. I expect better.
Sorry, but the rest of the article is behind a pay wall.
Add Texas to the list - once the NeverTrumpers in Georgia have their way and hand the Senate to the Democrats.
The Dems, of course, will kill Fracking, and with it, the Texas economy.
But that’s OK!!! Because Lin Wood says to let the Democrats win Georgia, and I’m with him, DESPITE what Trump wants us to do. I’m no idiot!!!
I think it’s largely propaganda. It is after all the Brookings Institution. Florida’s budget is currently in balance after you consider the CARES Act revenues that have already been approved by Congress. They are basically saying that they think the budget for next year and for 2022 will be that much larger. But remember that the GOP runs Florida. I suspect they will find a way to balance the budget as they did this year and every year for the last 8 years. Certainly the Brookings Institution is not a good source to tell us what the budget will be that the Florida legislature passes next year.
This is easily fixable and we all know that raising taxes will not work. Cut government. Cut government spending. Cut taxes. It leads to great things. More money in your pocket and greater freedom and liberty.
Thanks, 11th_VA, but,”shortfalls” are a spending problem not a, “revenue” one. The map clearly states, “as a percentage of revenue”!
I did not read the article as it is paywalled (and in accordance with freeper tradition), but with businesses locked down and unemployment way up the states did not slow spending a bit. This will lead to more folks screaming for socialism as the cure for economic ailment that is self induced.
One would think Fortune 500 could afford to hire someone to make the color key match the states’ colors.
Nice graph. Thanks.
However, I wonder what assumptions for economic growth were used? “Recovery” under Biden-Harris is likely to make the “Obama” economy look like a powerhouse. I believe the “map” under Biden-Harris will be much worse.
I also believe the maps do not account for local gov’t pension systems. For example, there was a list a while back of the worst 100 local gov’t pension systems in Illinois, some of them fairly large systems, showing how much each was underfunded. It was flat out unbelievable (except it was correct!) Even the least bad was hideous — pretty much guaranteed to go bankrupt in the next decade without measures like doubled tax rates.
Yet equally wretched are many long term State gov’ts outlooks, due once more to mainly health costs and pensions. The pension outlook in IL is a black hole. It WILL drive the state to bankruptcy. Incredibly, per capita, KY is even worse. And so on.
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