States Budget Crises
By Barry Ritholtz - December 24th, 2008, 10:45AM
States are seeking millions of dollars from municipalities.
A full list of states with budget shortfalls for the 2009 and 2010 fiscal years is here.
>
Sources:
The Local Burden
WSJ, DECEMBER 18, 2008
http://online.wsj.com/public/resources/documents/st_deficit-2010_20081217.html
States Squeeze Cities, Spreading the Economic Pain
CONOR DOUGHERTY and AMY MERRICK
WSJ, DECEMBER 18, 2008
http://online.wsj.com/article/SB122955325187415831.html
Tweet
Facebook
Reddit
Digg this!
December 24th, 2008 at 11:54 am
Compare the 2010 map with the Electoral map of 2008. Looks strikingly similar, although reversed colors. I’m not saying this to praise Republicans, but they do continually enforce a balanced budget. Now that might sound good, except consider Utah. We are supposed to have a 3% shortfall this year. The governor went ahead and submitted a budget cutting funding by that much statewide. Now the Republican party in Utah is salivating at the opportunity to destroy government funding for all those nasty programs, like education and welfare. They, instead, insist that we slash the budget without concern by 15%. It might look good on a map but seriously hurts those in need.
December 24th, 2008 at 12:06 pm
I wonder how those techni-color graphics, above, map out against:
http://blogs.icerocket.com/search?tab=web&q=CAFR
The Comprehensive Annual Financial Report (CAFR) is a thorough and detailed presentation of the state’s financial condition. It reports on the state’s activities and balances.
these exist for the various subdivisions/jurisdictions/subsidaries, etc., as well
December 24th, 2008 at 1:13 pm
Very few people realize the extent of the problems with muni bonds. This is yet another wave of the crisis, and the budgetary problems can only be solved by states and cities laying off workers and/or raising income or consumption taxes. None of these solutions is helpful in terms of the overall economy, of course.
December 24th, 2008 at 1:16 pm
technically Cali has a republican gov, and republican presidents have spent like wild men. I agree on a more local level though… And I agree that it can’t just be dollar figures – how things are spent matters too. Some of those blue areas could spend a bit more on reading programs, and maybe less on casino hookers.
December 24th, 2008 at 1:46 pm
By coincidence, I ran across this interview on Bloomberg on the subject. Features a very animated interviewee, but not annoying like Suzie Orman.
http://www.bloomberg.com/avp/avp.htm?N=av&T=Garnick%20Sees%20Municipal%20Bond%20Crisis%20%60On%20the%20Horizon%27&clipSRC=mms://media2.bloomberg.com/cache/vF_AyqQqW0Vg.asf
December 24th, 2008 at 1:47 pm
Oops – Barry linked this video on the next page.
December 24th, 2008 at 7:37 pm
These maps are not actually bad enough. For example, TX and AK are going to face big problems with sub $40 oil. (It’s all happening so fast there doesn’t yet appear to be any official pronouncements regarding shortfalls… you’d have to read their local press to find any details about their budget concerns.)
Not to mention CA and other Gulf states.
December 24th, 2008 at 8:27 pm
@leftback
Exactly right. Absolutely no one wants to talk about munis. I found it fascinating when a few news sources picked up on Warren Buffet’s move to support munis. And then it disappeared as news.
IMHO, munis are the next ticking time bomb everyone wants to sweep under the carpet.
It will be interesting to see how much of Obama’s stimulus gets thrown at this problem one way or another.
I think the old term was “SBD”.