NYC, USA
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I was doing some reading and thought some of you might find it interesting:
"It is simply stunning that 44 states are facing shortfalls either for this fiscal year, or will come up short in 2010 or 2011. [B][COLOR=#255933]This puts virtually the entire country in a difficult financial situation[/COLOR][/B]."
Fiscal Situation of 50 States: Combined Budget Gaps Estimated at $350 Billon for 2010 and 2011.
Those of you in Texas might appreciate hearing that your state is one of the very few that is considered to be faring better than most:
.."a key factor often missed in these kinds of discussions is Texas’ reliance on sales taxes rather than income taxes. Income takes a much bigger hit than consumption during economic downturns because people try to maintain their living standards while enduring temporary wage cuts or unemployment spells. So income tax revenue tends to fall further than sales tax revenue during recessions, leaving income-tax-reliant states facing deeper fiscal shortfalls."
On the Record: Texas in Better Fiscal Shape than Most Other States - Southwest Economy, Fourth Quarter 2009 - FRB Dallas
This article examines the "big four" : CA, NY, TX, FL. "The most tax-averse states over the years are in the best shape in these times of foreclosures, layoffs, bankruptcies and negative economic growth. That’s because their lower taxes produced less tax revenue for lawmakers to spend. Those lower-tax states had fewer and less-expensive government programs, and therefore have a much smaller budget hole from which to dig out."
Why Some States Are in Better Fiscal Shape - Capital Journal - WSJ
Ok. This is op/ed page, but has some interesting considerations: "We didn’t pay attention to the housing bubble. We closed our eyes to warnings that the levees in New Orleans were inadequate. We gave short shrift to reports that bin Laden was determined to attack the U.S. And now we’re all but ignoring the fiscal train wreck that is coming from states with budget crises big enough to boggle the mind."
Op-Ed Columnist - Invitation to Disaster - NYTimes.com
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. The 10 most troubled states are: Arizona, California, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin.
Other states -- including Colorado, Georgia, Kentucky, New York and Hawaii -- were not far behind."
Ten most troubled states in the U.S. - Nov. 11, 2009
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