According to the Pew Center on the States’ analytic report, “Beyond California: States in Fiscal Peril”, there are nine other states facing a budget disaster similar to California’s. The report, which was released today, shows that some of the same pressures that have pushed California toward economic disaster are also affecting Arizona, Florida, Illinois, Michigan, Nevada, New Jersey, Oregon, Rhode Island and Wisconsin.
For residents in these afflicted states, repercussions of the states' dire financial situation range from higher taxes, to layoffs of state workers, to less support for the unemployed. They also create problems for the nation as a whole: together, the ten states account for more than one-third of America’s population and economic output.
The report identifies threads that cut across the ten states with the goal of finding vulnerabilities in others as they try to wade their way out of the financial crisis. Unbalanced economies, misaligned revenues and expenditures, limited ability to act and procrastination regarding tough decisions were all pinpointed as factors that rendered the states’ budgets to their current condition.
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