New Study Shows Ten States Face Fiscal Crisis - by Stephen Lendman
The Pew Center on the States (PCS) "works to advance state policies that serve the public interest," through "credible research (to) advance nonpartisan, pragmatic solutions for pressing problems affecting Americans." Its new report titled, "Beyond California: States in Fiscal Peril," says the following:
"Many economists are optimistic that America's Great Recession may be turning the corner. States, however, are not celebrating. Plagued by record-setting revenue losses, the housing bust and credit crisis, high unemployment and a host of other challenges, (they've) struggled through nearly two years of budgetary pain - and are bracing for more."
California is worst off, but hardly alone. Others include Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin. Pew's Managing Director on the States, Susan Urahn, says:
"America's economic recovery and prosperity hinge in key ways on how quickly and to what degree states emerge from the Great Recession." For many, their "fiscal health hangs in the balance."
Economic, money-management, and political factors "pushed California to the brink of insolvency," but other states face the same pressures. As a result, their residents can expect higher taxes, more layoffs, reduced social services, longer waits for them, over-crowded classrooms, fewer teachers, higher tuitions, and less help for the unemployed and most needy.
The above 10 states account for over one-third of the nation's population and output. Pressures on them portend new ones nationwide. Pew scored all 50 by six factors:
-- high foreclosure rates;