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Governors: Bad State Economies To Worsen

From a seemingly surprised Reuters:

Montana Gov. Brian Schweitzer, center, jokes and asks Arkansas Gov. Mike Beebe (not shown) if he bought his suit at Walmart during a press conference at the National Governors Association (NGA) Winter Meeting in Washington, Saturday, Feb. 20, 2010. At left is NGA Chairman, Vermont Gov. James Douglas, and at right is Vice-Chairman and Gov. Joe Manchin III of West Virginia.

Bad economies in states to worsen: governors

Sat Feb 20

WASHINGTON (Reuters) – The already gloomy conditions of states’ economies are set to worsen, according to preliminary survey findings from the National Governors Association released on Saturday.

"The situation is fairly poor for a lot of states around the country. In fact, most states," Vermont Governor Jim Douglas, who is chairman of the association, said at a press conference at its annual meeting.

"What we’re finding out from a fiscal standpoint is that the worst is yet to come," Douglas said.

In a survey conducted last week of 45 of the 50 states, the group found that states have $18.8 billion of budget gaps yet to be closed in fiscal 2010. This comes after they have already imposed measures to eliminate budget imbalances totaling $87 billion in the fiscal year, which for most started last summer.

In the budgets they are drafting for fiscal 2011, states foresee shortfalls of $53.6 billion and for fiscal 2012 $61.6 billion

All states except for one, Vermont, are required to balance their budgets, so during the recession they have drastically cut spending on basic programs, laid off workers and boosted revenue through raising taxes and fees.

The $787 billion stimulus plan the U.S. Congress passed a year ago included the largest transfer of money from the federal government to states in the nation’s history. But for many states, most of its funding will run out by December

The survey also found that this fiscal year 38 states are bringing in far less revenue than what they had estimated at the beginning of the year and 21 states had to cut their budgets by more than 5 percent…

The massive amount of money that the stimulus has transferred to the states has only put off the need to tackle the many problems the states face.

So, for the most part, it was wasted.

This article was posted by Steve on Sunday, February 21st, 2010. Comments are currently closed.

3 Responses to “Governors: Bad State Economies To Worsen”

  1. proreason says:

    First you have to admit that you are the problem.

  2. GetBackJack says:

    And … we should isolate those states which are habitual offenders of Free Market, Libertarian economics.

    The Blue States, the nanny states … why, it’s the Union states and Democratic Party Thug states.

    What a surprise.

  3. Mithrandir says:

    The industry of government has proven that it is an utter failure and characteristically oppressive to the people forced to keep funding it. 45 out of 50 states have budget gaps, and the federal government is even worse?

    What a is wrong with the voters who are supposed to keep track of these clowns?

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