US state budget deficits could top $140 billion. Could threaten 850,000 jobs next year.

[dkf]

http://www.wsws.org/articles/2011/jan2011/stat-j24.shtml

According to a report from the Center on Budget and Policy Priorities (CBPP), 22 states are already projecting budget shortfalls totaling $70 billion for fiscal year 2013, which begins 17 months from now. The report, which was updated January 21, predicts that this number is likely to grow and will persist into the future.

Even before the budget shortfalls of 2012 and 2013, states have closed budget gaps totaling some $430 billion in the past three years. All states but Vermont have laws requiring balanced budgets.

When the drying up of federal stimulus funds is taken into account, the CBPP projects that state budget shortfalls nationwide could exceed $140 billion in fiscal year 2012. While states utilized a total of $158 billion in Recovery Act dollars for 2009, 2010 and 2011 combined, only $6 billion remains available for 2012. The

CBPP report estimates that these state budget gaps could threaten 850,000 jobs next year.

The following are just a few of the largest projected budget gaps for 2010:

California—$25.4 billion (29.2 percent of FY2011 budget)
Illinois—$15 billion (44.9 percent of FY2011 budget)
Nevada—$1.5 billion (45.2 percent of FY2011 budget)
New Jersey—$10.5 billion (37.4 percent of FY2011 budget)
Texas—$13.4 billion (31.5 percent of FY2011 budget)

The scope of the deficits faced by many states means that the austerity measures required to balance these budgets will take on drastic proportions. The vast majority of states, 46, have already made substantial reductions in services, with these cuts falling disproportionately on poor and working class families. Added to this, enhanced Medicaid funding that has been extended for six months through the end of June 2011 will soon expire for most states.

http://www.wsws.org/articles/2011/jan2011/stat-j24.shtml

[Joanne98]

1. We bailed out the banks but couldn't help the states!

[dkf]

2. We bailed out the states too...except their problems can't be fixed with short term funding. .

I can't imagine how bad it would have been if we did neither of those things.

[still_one]

5. Problem is the banks sold fraudulent paper to the states, and most of those who were responsible,

have made out like bandits

[dkf]

8. Our state settled over auction rate loans.

I think we are going to be made close to whole.

[still_one]

11. Not all the states are in that situation for sure, but the fact that a fraud was perpetuated, and

those responsible were rewarded, and many still in control is a disgrace

[WhaTHellsgoingonhere]

9. I wonder if we are dying a slow death by 1000 cuts...

...would hitting rock bottom in 2007-2008 forced real change. Right now we are being comforted by the notion that things would have been worse. They would have been. But not just for us who already are suffering, but for everyone. I just wonder, if 10s of millions more Americans were forced into foreclosure, would Americans merely be rubbernecking at the misfortunes of those around them or taking it to the neighborhoods of the Wall Street tycoons?

I live in Chicago. I see that for the employed, the economy and life in general is pretty good. I always wonder what it would be like if life wasn't so good for these people...

[still_one]

3. The dirty little secret which the MSM WON'T report is that these financial institutions sold the

states fraudulent instruments as high quality, which it wasn't, and helped contribute to shortfall

How many of these institutions have been punished again?

[dkf]

10. Do you have numbers on that?

Are you talking about the pension funds or actual government funds? Our state isn't allowed to buy anything other than short term or Govt paper.

[NeoConsSuck]

4. Another way to look at your post is:

we bailed out the rich but couldn't help the middle class workers. This is who the state deficits hurt, the middle class government workers.

[still_one]

7. It isn't that we bailed out the rich, we bailed out those who caused the problem, and rewarded them

with huge bonus payments

[HuckleB]

6. Why isn't Wisconsin at the top of that list?

Hmmmm.

:shrug: